Invoicing is an integral part of a business. So it becomes necessary for all businesses whether it is small or big to manage business invoices effectively. In fact, every business likes to get paid on time. But, Invoicing process can be stressful for small business owners since they are dealing with a lot of different clients.
Being a small business owner, dealing with Invoices is obviously an important task for them. The best way to manage such Invoices is by creating a good strategy for generating, sending, and keeping track of these business invoices. Moreover, there are various Invoicing tools available by using which you can not only save your time but also you need to put fewer efforts.
Invoicera is one of the world’s most powerful online Invoicing and Billing software that can help you manage your business Invoices in a simple way. Moreover, it comes with a range of features in order to manage business Invoices effectively and efficiently. Currently, it has over 3 million users and serving 60+ enterprise customers happily from last 12 years.
In this blog, we have discussed some of the effective ways through which you can easily manage small business Invoices effectively.
Best ways to manage Invoices :
1. Know the Payment Schedule
It is necessary to set a clear payment schedule which depends on the type of projects you work on with the clients. That means you must decide how much you get paid and when. If your projects are small, you will usually send an invoice once the services have been rendered. Here, we have mentioned three invoice schedules which you can use.
It is the best strategy to use because it ensures guarantee cash flow. You can use a recurring invoice if you work with the same client for over a long period of time and it will automatically bill the desired payment schedule. With this, you and the customer will agree on a billing interval (usually weekly or monthly) and the invoices will be invoiced automatically in the established interval. The client will eventually make this part of his routine, which will make him pay faster.
It happens many times when a client doesn’t want to pay a lump sum. So, they ask for the payments to be broken up which you must be agreed upon a billing interval. The intervals are generally based on the elapsed time or when certain parts of the project are completed. At the end of the project, the client often wants to see a final invoice that summarizes all previous billing.
At the end of the project, you can send a final invoice to outline the overall work that has been completed and make sure that the interim invoices have also been sent. Detail if those interim invoices have been paid and list the pending final amount. Even if the work has been paid in full, send a final invoice to wrap things up for both your client and you.
2. Digital payment system use
An online invoice payment solution which can offer online invoicing and bill collection is a must for businesses these days. If you are still sending invoices in the mail then start using digital payment system for a fast work process. It is the best strategy to equip yourself with this system.
Moreover, these platforms will save your precious time and money when billing your customers. In addition, all your books are stored safely on a single platform, which means there will be no more files.
3. Paperless Invoicing
By going completely paperless is the best way to keep your invoices organized and nice. You can use Online Invoice software for a hassle-free work. This invoice management software makes it easier to run whole business and manage better cash flow. However, there are many other famous tools viz. Freshbooks, PayPal, Quickbooks available to manage your business invoices. You can choose the best according to your business requirements and budget.
In addition, paper invoices have a way to accumulate (both for you and your customers), they are a headache to manage, and it is easy to lose track of whether you have sent an invoice and if it has been paid. So it is a must for businesses to go for paperless invoicing.
4. Ignore common delays
It is no surprising thing for a business owner to make mistakes in their business. Below, we have listed some problems which can be avoided easily and you will get paid quicker.
Make yourself clear on the terms
When it comes to a client, it is imperative that you be very clear with the terms. Before starting any project, you must clearly establish all the terms of the project. Including the payment intervals, the estimated budget and any other clause that protects it. Make sure the client signs this agreement so that he has a physical copy.
Contact with the right person only
When working for a client, make sure you know who is actually paying the bills. Sometimes, the person with whom you are communicating in the project does not have access to the funds of the company. In this case, be sure to send the invoice to the appropriate person to avoid unnecessary delays or confusion.
5. Managing the sent Invoices
Sometimes you need to edit the invoices which you have already sent. For this, Invoicera can help you best which makes it easy to manage and editing past invoices. In fact, editing, cancelling and resending previous invoices can be done with our Invoicing tool.
The invoicing and billing process does not need to be very complicated. Obviously, there will always be a few clients that will give you more problems than the rest, but most of the time you should be able to develop your own method or strategy. Having said that, you must use the above simple strategies so that you can effectively manage the bills of your small business.
However, Invoicera brings quality services and builds happy relationships in the timely flow of payments. With its powerful invoice management software , it helps you to reduce the duration of payment cycles and Get Paid Quicker. Also, it keeps a track of each and every invoice and penny pending from the client’s ends and analyzes detailed financial reports. This helps you to better understand the status of each of the client outstanding and resolve all issues including delayed payments.