Proper invoicing is a must-do to get paid. Fast payments are a must-have for cash flow, and liquidity is a condition for long-term sustainable business. In this article, we're going to cover all things you need to know to run your business smoothly when it comes to invoicing and getting paid.
Rarely does a business owner like working with paperwork, unless it's money. One of the administrative tasks over which you must have complete control and professionalism is invoicing. All business owners and freelancers consider it critically important, especially when it comes to mistakes and oversights because they cause payment delays and blockades of business activities.
Here are a few crucial things you need to know for your business to run smoothly and for payments to arrive on time:
The agreed deal is no longer a sufficient guarantee that you'll get paid for what you have delivered. To avoid misunderstandings with clients, inconveniences, or even fraud, be sure to sign contracts with each client.
Before sending the invoice, first send an estimate for review so that both you and your client have complete insight and control over the amount, type of work, and everything you have concluded spoken. Then, only when your estimate is approved - turn it into an invoice. This way, you avoid inconveniences and invoices that will remain unpaid.
Each of your invoices must clearly state the deadline by which it should be paid. Failure to specify the payment deadline will, in most cases, lead to late payment and loss of time in communication with the client.
37% of customers do not pay on time if the payment deadline is not clearly stated on the invoices.
It is clear that the longer you wait to send an invoice, the longer you will have to wait for payment. This is especially important for businesses that have a large number of monthly invoices. Therefore, you need to establish a transparent invoicing system and procedures that everyone must follow.
For example, suppose you have regular customers. You can introduce a rule on which days they are invoiced, like at the beginning or end of the month, and this practice will make it easier for them to plan funds to pay for your goods/services.
The advantage of automation is best seen in recurring invoices. They allow you to add the frequency of sending invoices and the number of invoices to the classic invoice. The system does all the calculations and sends invoices on time, every time.
Don't forget to enter essential details on your invoice. For example, some clients ask for the date of invoicing and the date of receiving. Others want to state the number of the purchase order with the date. It is vital to accurately display the name of the goods you invoiced and provide a detailed description of the service.
Don't skimp on details because customers may tell you that they need more information in the invoice and thus move the payment date further.
You'll find yourself invoicing the same types of products or services over time. Saving these, along with titles, descriptions, taxes, and pricing will ensure your invoicing is always correct while saving you lots of time and giving you reports on what's hot.
Additionally, add special notes at a customer level and on invoices and add invoice payment options. Select which payment option works best for you, and get paid timely.
The invoice number allows you to track invoices easily and monitor their billing dynamics more efficiently.
After you set the number of the first invoice you send, the software puts each subsequent invoice into the system in a hierarchy. Thus, you can filter all invoices later by:
In this way, you have a better insight into all invoices, which finally facilitates the work of bookkeeping.
Suppose cash flow is crucial to maintain business dynamics. In that case, you can also include discounts for cash payments or prompt invoice payments. You can also introduce small discounts for regular customers to make a trustworthy relationship.
Invoices are entirely customizable. For example, you can get a discount with one click or input a value, and the system will do the calculations on the invoice total, which will save you much time. Discounts can be applied on a line item or as a total invoice discount.
Branding an invoice with all the necessary details for accounting and communication with the client speeds up the payment process. In addition, it presents your company in a professional light.
You can select from awesome invoice templates, change field names, and set your brand colors in less than a minute! Upload your light and dark logo, set up your brand colors and pick some of the outstanding presets, and wow your clients.
Review invoices carefully before sending. This will reduce the number of errors and speed up the billing process.
After you fill out your invoice, the software gives you a preview option before sending and a shareable link you can visit to know how your invoice will appear in their inbox and desktop.
Additionally: A shareable link allows the system to track an opening and reviewing of an invoice, which gives you an insight on what to do next.
This will undoubtedly reduce the number of omissions, especially those with tax liabilities that can jeopardize your business. One way is to separate paid and unpaid invoices to track unpaid and remind customers to pay you.
Keeps an eye on the money that came in and went out, so you know exactly where your business stands at all times.
Some customers need a reminder to pay the invoices, either because they have too much on their plate or because they practice delayed payment until someone squeezes them. Make a schedule of when and to whom you should send an email with a reminder. Set the deadline for payment of the invoice is in two days or that it has already expired.
Automated invoice reminders will do the job for you perfectly - every time. Use tags for a more personalized touch on the email template, and set how many reminders you want to sent: before, on the due date, or after the due date.
Invoice notifications are a fast, easy, and straightforward way to communicate with clients and business partners. It gives you so much information on what's happening on the customer side, leading to increased estimate approvals, problem resolution, and faster payment collection.
Push notifications in the system will inform you of important business events. There is no other way to find out. In the bullet points are four core notification categories.
Always maintain a kind tone and behavior when charging someone for your goods/services. Creating loyal customers is a "must-have" of modern business; always keep this in mind when notifying customers who are late with a payment.
These are the crucial ways on how can you change your game plan, so you'll always have timely payments and enough room always to be kind & polite when charging:
And in the end, make sure to enjoy the process!
Stay up to date with the latest video business news, strategies, and insights sent straight to your inbox!