Small Businesses: Tips For Managing Invoicing

Managing invoicing in a small business is very important and should see this this as part of essential operations. Managing invoicing is a serious operation as it ensures customers pay more promptly. Businesses with poor invoicing practices often have poor cash flow and customers don’t have any reason to pay on time.

Managing invoicing can differ from one business to another, for example, there is a difference how invoices are managed for a retail company compared to a services company. Invoicing speaks volumes about your business’s professionalism so you need to make sure you take it seriously.

Use an invoicing software

Using a professional invoicing software means you will create and send invoices that are billed as standard.

Invoice on time

Decide what is the ideal time to invoice your clients in a way that ensures you get paid on time. The best time to invoice clients is as soon as you have delivered goods or services to the customer. This ensures the value of this good or service is still fresh in their mind so they will be encouraged to pay promptly. If you work for a client on a retainer then a specific date should be decided and communicated beforehand so they know when to expect an invoice from you.

Highlight Payment Terms

Including payment terms on your invoice is important. State on your invoice when you would like this invoice to be paid so for example, this might be 14 days or 30 days and also include any penalties for late payments. You don’t want to state too many payment terms however, you don’t want to let a client get away with late payment without some sort of penalty.

Use Accounting Software

Today’s accounting software makes it very easy to manage invoicing for your business. The systems allow businesses to automate the processes to a certain extent. Human input and intervention is still required but it does help to streamline this part of the business.

Organise Your Invoices

Number and track your invoices so you can reconcile payments against them. Ask clients to pay against the reference number on the invoice so you can easily track payments in the future.

Outsource Your Invoicing

Some small businesses look for professional help when it comes to managing invoicing. This is where we come in! We can manage the whole process for you, from sending invoices, talking to your client’s accounts departments, chasing payments, and verifying paperwork.

If you would like to outsource your invoicing and would like to find out how we can help, please get in touch.

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