Invoicing plays a fundamental administrative task that every business needs to put extra interest and effort on. It is one of the many ways an enterprise can ensure a healthy cash flow for their company.
You need to prepare professional and comprehensive invoices and manage them efficiently as invoicing errors or missed due dates negatively impacts your cash flow. Here are six of the best practices that can help you improve your small business invoicing processes:
Include all necessary details in the invoice
To receive a speedy response, you need to include all the necessary details in the invoices that you send out to your customers. When you create and send detailed invoices, you can provide your customers with enough information to help them see all the specifics related to your business’s payment process, enabling them to send their payments efficiently.
Your invoice should clearly state the following:
- Invoice date (date of issuance)
- Invoice number
- Billing period
- Your business’s name and billing address
- Your customer’s name and address
- Payment terms and due date
- Your bank details
- Your contact information
In addition, you can also include VAT numbers and other relevant information such as client reference numbers and purchase order details.
Provide clear descriptions for each charge
Apart from including all necessary information, you also need to provide comprehensive descriptions of each charge in the invoices. Including a breakdown of charges within an invoice allows customers to see the list of items they are buying and their costs with clarity.
When your client sees that the costs of their purchased commodities, as well as packaging and delivery or shipping fees, are broken down with clear descriptions, they will not have any doubt about the accuracy of your invoices. With this, you can increase the likelihood that your customers will pay on time.
Send out invoices as soon as possible
Getting paid on time is crucial to maintain a healthy cash flow. Therefore, you must send invoices to your customers as soon as possible after you complete a project. By doing so, your customers can read through your payment terms, enabling them to know the timeline of payments as well as the late fees they may incur if the invoice is not paid on time.
Sending out invoices at an early date prevents you from forgetting to send them and increases the likelihood that your clients will pay invoices on or before they are due.
Follow up on payments
Although most clients pay invoices immediately after receiving them, there will be times when they forget about their invoice’s due date or misplace their copy of the invoice. When this happens, it is your responsibility to make a follow up on the unpaid invoices.
It is okay to remind your clients that their invoices are almost due. You can do this by periodically sending them a professional yet friendly reminder, particularly when the invoice’s due date gets closer. Following up on invoice payments can help refresh your customer’s mind about your payment process. It can also enable you to mitigate cash flow issues.
Offer easy and multiple payment options
You should provide multiple payment options to your customers to make paying your business invoice easy. With several ways to pay, they can opt for a payment method that is convenient for them.
Your customers will appreciate your business’s flexibility when it comes to payment methods. Subsequently, since they will have access to their ideal payment option, you can ensure fast and efficient invoice payment.
Automate the invoicing process
Your business invoices are considered indispensable tools to track your finances. They are a conclusive document that acts as a record of a sale or purchase of your offered goods or services.
Because of this, it is essential to generate detailed invoices. Relying on manual invoicing systems to create invoices with comprehensive details may consume much of your business’s time. Aside from being time-consuming, such systems are also prone to errors.
You can improve your business’s operational efficiency by utilizing modern invoice maker software. It is among the reliable accounting tools that can enable you to streamline your business’s operation by simplifying the tedious and repetitive task of producing business invoices and improving efficiency in activity management and customer monitoring.
Moreover, an online invoice maker software ensures payment. It allows you to efficiently send invoices, set up invoices for recurring payments, send out payment reminders. In addition, it also enables you to back up your business invoices on the cloud, enabling you to view, track, and manage them anytime and anywhere.
Where to get an easy-to-use and time-saving invoicing software that gets you paid?
KIPPIN is a cloud-based accounting, bookkeeping, and invoicing service tailored to simplify the everyday tasks of businesses. We align our clients to top financial experts on our platform to take care of all your accounting and invoicing needs. We also provide software-only solutions to automate processes, making them quick, easy, and remotely accessible.