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If you want to make sure that you help your small business then invoicing is probably the best thing for you to be focusing on. If you can get your invoicing process right, then this will help you not only get the result you want but for you to ensure that you have a constant and steady cash flow.
Set your Terms
You are fully entitled to set payment terms that happen to suit you. It’s not a given that you have to wait 30 days or more for a payment, and you also don’t need to wait until the 20th of the month either. Instead, outline a payment term plan. Be explicit with your clients about your terms and provide a project pitch if you can. State your expectations and be clear on things like late fees. Take note of what is going to happen if a payment isn’t met and make this clear to your customers too. You can even ask for a deposit if you want, or split payments throughout the life of the project. You might also want to try and get a financial commitment from the client before you move ahead, so you know that they can pay and that they are contractually obligated to do so.
Chase Overdue Invoices
Let go of feeling awkward, or even asking for money. In a lot of cases, you may find that when you follow an unpaid invoice, the client has simply forgotten to pay it. There might not be any malicious intent behind it, it’s probably them who feel awkward. One way for you to deal with this is to try and send out an automated reminder first. This is very easy if you use a reminder software. It’s also easier to have a direct discussion than it is to go back and forth all the time. If you don’t have an accounting team that follows up on late payments, then consider enlisting a bookkeeper who can help. You might want to look into ap 3-way match if you can as well, as this is, again, a good way for you to get the result you need out of your invoices.
Invoice at the End of a Project
You might also want to invoice at the end of the project. Don’t wait until the end of the month to create all of your invoices. Instead, try and send them when you complete the project. If you can do this with software then in some instances, you can send the invoice from the job site which is great, to say the least. This is better for your cash flow, and it also means you have a way higher chance of getting paid.
Make it Easy to Pay
If you have a business that needs to track or bill by time then you may want to get some software that helps you to track this. It also allows your clients to see what they are paying for as well, which is so important. You also need to have records that back up your invoices. One of the key benefits of using job management software is that you always have a good idea of the work you have done, and you can also have access to the right information should your clients call on you to question it.
Get the Right Details
During your onboarding process, be sure to get as much information as possible about the person, the department, and the address that you need to include in your invoice. If you can do this, and you can email the invoice to the person who is in charge, then this reduces the chance of the invoice getting overlooked. It also means that you can develop your relationship with your clients, so you can contact them directly with any questions that you may have.
Make it Easy
You also need to make it easy to get paid. This may sound a little obvious, but it is so important. Include the right bank account details and also make sure that you have online payment options set up, so your clients can log in to their account and pay anything that may be required. If you can do this then you will soon find that it is easier than ever for you to get the result you need and that you are also able to get any questions answered. This is a great way for you to move forward with confidence.
