There are times when you might have to go on an outcall as a part of field service responsibility to help your team with the sales call. This also means that you have to punch out of the office for the day and have to manage the business financials of your business starting from balancing books to authorizing paychecks.
The most important task a business owner’s face is sending invoices for their services or work done. The question is when to send an invoice to clients? Before or after the job is done?
Let’s evaluate 3 options for your invoice timing:
Option 1: Send Invoice Before Starting The Work
Sending an invoice prior to the beginning of a job suits perfectly for the small-scale projects. There are few upside and downside of sending an invoice before the project starts.
Improved Cash Flow
Receiving money before you even start the project helps your business a lot in easing the cash flow. Not only you could buy supplies and resources required for the project from the sum received instead of buying on credit, but it also increases your chances of bidding on other projects simultaneously. Strong cash flow brings stability to any business, especially to freelancers and startups.
Sincerity Towards The Project
It is obvious that if your project or services are paid in full before even you have started working on it, means that you have made a legally binding commitment and shown your sincerity to complete the job in the required time. More importantly, it can also harm the reputation and ruin client-customer relationships if the work is not delivered on time.
Many clients are indecisive about the invoicing and tend to get anxious as they have paid in advance for the goods and services that they are yet to receive. Small field service business operators suffer from the same conundrum as they have received the money for the project beforehand. Anxious clients add stress to already stressful projects.
Option 2: Send Invoice After Completing The Work
More often than not, invoices are sent after the job is completed. Generally, field service businesses are also involved in sending invoices once the work is done.
Unsure Of Payment
This is a bit tricky sledge. In most of the cases, after you finish a project for one of the regular clients, the incentives for customers to pay you decreases. Many at times, sending invoices after completing the job may also leave you nothing for the efforts if there aren’t any strict payment terms agreed upon.
Meet Or Exceed Customer Expectations
The purpose of the invoices is to get you paid faster. Hence, once the job is done and invoices are sent, depending upon the client payment schedule, it may or may not help you in managing your cash flow. Also, by waiting to bill customers, you try to convey to clients about the incentive for either meeting or exceeding the quality expectations.
Click here to know: “Pros & Cons Of Using ‘Due Upon Receipt’ Method For Invoice Payment Terms”
Option 3: Best of Both
The best way to attain margin for your work is by taking advantage of getting paid before and after the work is done. To do this, make sure that you request an upfront payment of 25 to 30% of the total cost of the project. This should suffice you for purchasing any equipment and materials, to begin with, the task. Then, stipulate a final payment that covers the completion of a project.
Whether you send an invoice before or after the work, make sure that the payment terms and conditions of the project are clearly mentioned in a legally binding contract. Moreover, you can also use the best free online invoice maker to help you with time and expense tracking of the project. Invoicing and billing software can also help you in managing the project, recurring invoices, customize invoices and many more other features.
In the end, transitioning to the cloud-hosted invoicing generator is a viable option and a big step but on the contrary, it also helps saves you time and money. If you are considering to simplify your accounting and invoicing process and get rid of tedious paperwork, then the best option for you to consider is Moon Invoice.
Following are the immediate ways a business can get benefited from Moon Invoice and could possibly avoid a financial backlog.
- Schedule invoicing
- Direct invoicing
- Invoice any time, anywhere
- Organized invoicing system
- Ease cash flow management
- Manage multiple businesses
- Quickly import, export, print, and sync
- Create and manage your own custom settings
- Manage multiple payment options and many more…
All this might sound expensive, but in reality, it is not. The online invoicing application from Moon Invoice comes with a 7 days free trial period to give you first-hand operational experience and functionality feel of the app. So, we do not see any reasons for you to hold back from giving this much-awaited momentum to your business.