Are you always on a run for cash from your clients? As a small business owner you wear multiple hats already, and getting paid in time might lead to more workload. Managing debtors and following up on invoices also takes time and resources. In order to go through all of this more quickly and reliably, businesses look for ways to improve their invoicing processes to get paid quicker. The prompt payments must be balanced well by quick invoicing, communicating clearly and reminding clients when they owe you. As you go, invoicing software can help.
There is no single method to follow but a few tips and tricks to get your invoices paid quicker.
- Agree on clear and short payment terms:
It is of utmost importance to make your payment terms clear to the client. Get invoices out as soon as possible to get the invoice paid sooner. Don’t be casual, be sure to stick about your payment terms.
- Make sure it’s sent to the person who pays the bill
The person that you deal with may not be the same person that you want to send the invoices to. Therefore, send the invoices to both the person who authorizes the payment and the person who actually processes it. Ask in advance to your clients who you should send the invoice to.
- Provide easy to understand and accurate invoice
Queries delay payments. The best way to avoid them is to make sure your invoice is accurate and straightforward. For example, if you need a PO from your client make sure you get it and include it on your invoice. It is important to check if your invoice includes every details: business name, contact details, the date, bank account details, payment terms and policies, etc.
- Include your bank details or other payment options
Putting your bank details or other available options for making payments on an invoice can let your client process easier. Consider giving them as many options as possible to pay your invoices on time.
- Follow up on overdue invoices promptly
Overdue invoices should be followed up immediately. You can set automated payment reminders for your clients, early call in a day. Remain polite to get invoice paid and maintain healthy relationships with clients. Make sure to get the client’s agreement at the very beginning, then the terms will be simpler and you can easily follow up with the invoices for each payments later on.
- Add late fees
Make measures to receive payments early. Inform clients well about your payment policies. INclude them in your invoices for your clients to have a clear idea about it in your mind. Adding an interest or a late fee on overdue payment makes the invoice paid before the deadline. Let the client understand properly and pay accordingly. Be diligent about collecting cash, allowing clients for more than 30 days to get invoice paid can seriously affect the cash flow.
- Consider early payment discounts
Providing a client discount can be good, but make it clear what’s more valuable. Ultimately, if you decide to offer payment discounts then it is slightly less than the full payment now. Determine if your profit margin allows for discount. Review your finances to ensure that you can afford to offer discounts.
- Transparent Communications
Introduce transparency into the relationships i.e. clearly communicate exactly what type of transactions will be charged to client. Building happy relationship with customers is the key goal of every business. The failure may result in delayed payments, lost profits and increased headaches. When signing to new customers, keep the terms codified in agreement. Inform them clearly about your invoicing policies and importance of making timely payments.
- Automate the invoicing process
The automated solution reduces the transactional costs and eliminates costly mistakes entirely. The main advantages of automation includes increased throughput or productivity, improves robustness, increases consistency of output, reduces human labor costs, expenses and many more. Choose invoice automation solutions for complete invoice-to-cash process
- Switch to recurring billing
The recurring billing solution for your business is an essential for getting the most out of the retainer clients. It improves the overall payment cycles in business. Recurring invoicing helps a business with easier forecasting of revenue in the coming months. Recurring profiles help in improving the revenue of the business as it improves regularity of the business. Adding automatic payment reminders to recurring invoices, is a useful method for getting invoice paid on time. Recurring profiles help in improving the revenue of the business as it improves regularity of the business.
This is an integral part of professional business invoicing process. A company can better manage its cash flow and make capital available to reinvest with faster predictable payment cycles. Invoicera invoices comes up with an option to pay via 30+ payment gateways to receive payments faster.
Moving to an online invoicing system makes your entire process of generating invoices and receiving payments smooth. It enhances your capabilities of reaching the goals well in time. therefore , it becomes of utmost importance to use the power of online invoicing fully.
Getting paid is no longer hassle now, use the above mentioned tips to keep your cash flow rolling. Try to leverage online invoicing tools to make it as easy as possible for clients to pay you quickly. Then only you can focus on producing best work rather than wasting time on tracking an unpaid invoice!