More than 40 percent of small business owners have been at risk of not being able to pay their employees by payday.
Having a proper invoicing system can help alleviate this problem. If you don’t invoice your customers, they won’t know how much they owe you.
So here are some great invoicing tips to help you with your small business invoicing.
1. Send Invoices to the Right Person
Ask your client who processes payments at their company. Get the email and contact information for the accounts payable department and always send your invoices directly to them.
Don’t hand a paper invoice to someone in the field as they may not make it back to the office that day. Your invoice may get lost in their vehicle and take time to make it to the payment clerk.
2. Speed Up Your Invoicing
Use a professional template to standardize the appearance and content of your invoices. Select a font that is clear and easy to read. Upload your logo and include several ways options as contact information.
Once you’ve created a template, you’ll have a fast invoice maker available whenever you need one. It’s simple to enter the billing details with any relevant information or notes to the customer. You can download the final invoice, email it to your client or send it online.
Your template should include any terms, such as late payment fees. Add a list of the payment methods you accept, and your customer will select their preference.
3. Your Due Date Should Be Specific
When invoices say due in 30 days, a customer might think it’s due 30 days after receiving it instead of 30 days after the invoice date. An ambiguous date will result in late payments. It’s better to input a specific date, such as July 31, if the invoice date is July 1st.
4. Invoice Electronically
It’s worth considering using invoicing software to create invoices online and send them to the customer without printing them. Some programs offer automated reminders sent when a customer misses their due date.
Invoicing technology is improving all the time. If your customer makes regular payments for your product or service, consider automating the invoicing. If there’s a standing order or a subscription, set up a recurring invoice and send it automatically.
5. Follow Up When Payments Are Late
As soon as an invoice is overdue, send a late payment reminder. Follow that up with a phone call to see if there’s a problem with the invoice. That allows a customer to ask questions that may clear up any issues they have. It’s a great opportunity to provide excellent customer service.
Be persistent but polite. Collections are part of running a business. If someone is experiencing financial difficulties, they are more likely to pay the person who keeps asking for their money.
Ace Your Small Business Invoicing Today
When it comes to small business invoicing, it’s great to have a system in place. You’ll always send invoices promptly, and your cash flow will improve.
We hope you found some great ideas in this article. If so, be sure to use the search feature to check out more business invoicing tips.