At the end of the day, every business needs to collect payment for the products and/or services they have rendered to the clients. In order to that, they have to send invoices to clients. Though it is an integral part of the business which keeps the cash flow running through the company but still maintaining and managing invoices is rightfully classified as a tedious task. A small error could have it return the invoices leading it to delay further causing disruption in cash flow and moreover, you will have to chase down your payment by follow-up most of which further end up on a future date. The smarter way for your business would be to make the invoicing process quicker, automated, intuitive and of course user-friendly simple design.
1) Set Payment Terms In Advance:
Before any such business transaction could take place, ensure that both buyer and seller are on the same understanding regarding payment and timeframe, for e.g, payment upon receipt, 30/60/90 days, etc. This way seller is assured of the payment and can also send a kind reminder accordingly.
2) Setting Up Payment Amount:
This is also a rule to follow to decide the price of the product and/or services in prior to avoid any last minute confusion and again another reason for payment to push further. The seller can clearly mention this in his listing price on the website or even inform via written quote. Any additional charge beyond final amount such as VAT, GST, Shipping costs, etc has to be specified.
3) Accepted Payment Types:
Another way to boost the payment process is by making buyer aware of what all types of payment are accepted such as credit/debit cards, check or online payment gateways such as PayPal, etc – on the invoice and also should provide in detail about the types of cards accepted or check specific requirements.
4) Addressing The Right Person:
Many invoicing delays occur due to being addressed to an incorrect person or even department. Sellers have to make sure of providing correct contact details where the invoices should be sent in order to get paid on time.
5) Numbering invoices:
Organizing invoices with proper number allocation provide you with instant access as and when in need such as for tax purpose or for a record traceback. All the paperwork regarding business transactions such as contracts, price quotes & estimates, receipts, etc, should be kept safe, secure and handy.
6) Payments Follow-up:
This is a good practice on seller’s part as sometimes knowingly or not but buyers forget to pay or avoid making payment for the purchased goods, products or services and hence utmost necessary rule to take a timely follow-up once the invoice is sent and based on payment terms. You can also set the reminder to resend the invoice or can contact buyer for the payment. If still unavailable then you take the extreme step of taking a legal action. However, it is always suggestive to carefully check of utilizing all the other option before opting for a legal option.
7) Automate Invoicing:
Many businesses have started adopting to automate the invoicing process. Automating invoices will make regular templates for clients as specified and send them regularly on time. This system can also send payment reminders on time. The automatic invoicing system can speed up the process of receiving payment which makes invoicing quick and simple.
Moon Invoice, a simple and easy online invoicing platform can streamline your entire expense management process with its ‘Payment Simplified’ feature. The feature can help you optimize, organize and can help you to take necessary action to get you to up to speed in terms of payments. Few of the ‘Payments’ features at a glance are- Bill In Any Currency, Multiple Payment Methods, Taxes & Discounts and many more…