If you have a small business, you know that invoicing is one of the key-processes. Business cash-flow depends on prompt payment. We discover some tips to make invoicing easier and more effective. Do you get tired of late payments? We dwell on improving communication with your customer and getting paid on time.
DEFINE INVOICE PAYMENT TERMS
Getting paid for a service or a product should be straightforward. As soon as the product is delivered or the project is complete, you send an invoice that explains why and how you expect to be paid. Small Business guide suggests to include such details:
- Accepted forms of payment (maybe you won’t take credit cards)
- The currency you deal in, if you work across borders
- Late-payment penalties, if you charge them
But first of all payment terms are about the due date. At the bottom of the invoice, you should indicate how and when you expect to be paid. These details will usually be worked out beforehand between both sides but this note reminds the payer of that agreement. The most commonly used term is “net plus 30” (you expect to be paid within 30 days).
But you should know that short payment terms are common and mostly small businesses are giving shorter invoicing terms. It helps to receive your money faster.
DON’T FORGET ABOUT YOUR CONTACT DETAILS
Every invoice will involve two parts: the payer and the payee. Each invoice must include the details of both so that it’s clear exactly who the invoice is for and who it’s from. The details should include legal names, business addresses, and phone numbers, with the role of each party identified.
NUMBER YOUR INVOICES
Invoice numbers are necessary to ensure proper documentation of charges and income. The number assigns on each invoice and presents in logical way.
Most of specialists say that it helps to keep better track of clients and payments.
MAKE YOUR INVOICES CLEAR AND UNDERSTANDABLE
It is important to mention straightforward information for your client. But don’t forget about essential elements of an invoice. It doesn’t only tell a customer or a client how much they need to pay and what they’re paying for but also contains several other different pieces of information that are all essential for an invoice to be effective. Here is a list of this info:
1. Company details
3. Date and invoice number
4. List of Items purchased
6. Terms of payment
It is an example of the list of Items purchased:
Also it would be better if you personalise invoices with your business logo. If you use Online invoicing you can add social links. It will help you to be in touch with your customers.
And here we’ll talk about the last tip in our article which helps you boost your invoicing.
AUTOMATE YOUR INVOICING
There’s no reason to send out manual invoices these days. Cloud billing applications make it fast and easy to automate much of the process.
The most significant pros of this advice is that the invoices, once scheduled, will automatically be sent to the desired customers at a fixed time. Also you can monitor payment status and hold a record of transaction. All of these functions will save your time and make invoicing more efficient.
Here is a video about benefits of automated invoicing:
And here is a short interesting quiz:
Let’s summarize the key points of the article. So to boost your invoicing you should:
1.Define invoice payment terms
2.Don’t forget about your contact details
3.Number your invoices
4.Make invoices clear and understandable
5.Automate your invoicing
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