Everytime a business sells goods or services, it is important to send invoices and receive payments for the same. The importance of invoice and payment management grows with the number of clients the business has. Most businesses, even though profitable, suffer from improper cash flow and invoice management. This poses huge challenges for business growth and expansion. Here are some important tips to manage your business invoices more effectively in 2016.
Automated Invoice Processing
A solution with automated invoice processing includes simplified transfer of data from invoices. The process includes simultaneous interpretation and validation of invoices. The complete process includes:
- – Data Processing
- – Verification
- – Resolution
- – Approvals
- – Payments
- – Storage
An automated invoice process and workflow management helps bring out the best of the resources invested in an ERP. A completely automated solution does not require resources to be manually involved.
Make The Payments Process-Simple
This is a useful technique for managing invoices effectively. Payment gateways help in enabling clients to make payments anytime, anywhere. This helps in faster processing of payments and saves time and effort on the part of the client. Automating the payments process, helps in simplifying the transactions, even further.
Automatic Payment Reminders
Automatic reminders are very useful in saving time and resources deployed in payment follow-ups. Online invoicing solutions help in setting up automatic payment reminders, helping in making the invoice management process efficient and time saving.
This is a useful technique for managing invoices more efficiently. This helps in sending out invoices more professionally, also helping in showcasing the brand identity of the business. Such invoices are easier to create and manage. One can easily add the due date and other terms and conditions pertaining to the invoice.
Send Estimates On Time
Timely estimates are crucial to invoicing. Estimates are the proof, that the terms and pricing of the transaction have been approved by the client. Using an integrated estimate management solution helps in faster sending of invoices to the client mailbox. This helps in faster processing of invoices and payments.
Invoice Numbering System
Payments for invoices can be tracked easily, using an appropriate numbering system. Using a numbering system that helps in knowing other details, like the date of the invoice can be really helpful. This would help in faster tracking of invoices and query resolution.
Timely Sending of Invoices
This is one of the most important aspects of an invoice management process. This helps in ensuring that late invoices are not the reason for late payments and the client takes this as a responsibility to make the payment in a timely manner. Using an appropriate online invoicing solution helps in scheduling the invoices in a timely manner.
Analysis and Forecasting
Analysing outstanding invoices on a periodic basis helps in tracking the status of each invoice and taking necessary action. Invoice analysis also helps in forecasting the demand for goods and services and maintain an appropriate level of inventory.
Late Payment Penalty
An appropriate late payment penalty is helpful in getting the clients to pay up on time. This is helpful in getting timely payments for a large number of invoices. Adding a standardized late fee on all invoices, using an appropriate online invoicing solution, simplifies the invoice management process, in a big way.
As business owner, it is not possible for you to manage invoices yourself. One has to delegate the invoice management and payment collection process to appropriate staff members. These people must be trained to send out business documents in a timely manner and ensure that collection targets are met. They must also take care that no client has unresolved queries, pertaining to any of the invoices.
Integrated Time Tracking
This is an essential aspect of billing clients more accurately for the services rendered. An integrated time tracking solution helps in directly converting time-sheets into invoices. This also helps in improving the productivity of employees. A time tracking tool also helps in sending out a detailed time sheet reports to clients helping clients know more about the accomplished tasks.
Integrated Expense Management
Managing and billing for project expenses, is another crucial aspect of invoice management. An integrated tool helps in recording all the expenses on time. It also helps in keeping the business expenses under control and managing business finances better. On can also convert expenses to invoices and send them to the client, on time.
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