It is irrelevant whether your business is under certain debt or not but a business surely thrives on daily revenues. This everyday cash flow is utmost necessary for any business to function smoothly. Moreover, not only it helps in paying its own bills but also to maintain a good credit with the bank.
So everything comes down to maintaining daily cash flow. To manage this you’ll need an appropriate and professional invoicing system in place. But the challenging part is how to make your invoicing system work efficiently so that it benefits your business.
By adopting the following practices you can form an efficient invoicing system:
1) Using A Professional Invoice Generator
Instead of manual invoicing, which many at times leads to errors causing delayed payments, one should go for a cloud-based invoicing system. This electronic invoicing system or simply online invoicing allows you to send bills electronically. Not only it offers you numerous features like Payments, Estimates, Track Time, Expense Management, Import/Export & Print (if necessary) but also it saves you in postage, paper, and ink.
2) Detailed Information
You can integrate details as per your business needs but in general the basic information like email address, name, billing address, payment method, etc. With all these details saved, you can create invoices in very less time. Additionally, you can also save time while issuing the final invoice by keeping pre-fixed typical billing costs. The bottom line is that the sooner you send the invoice, the faster payment process starts.
3) Easy & Organized
Keeping your invoices neat with adequate information along with a clear design is the best way to go along. Clogging your invoices with too many information makes it look unprofessional. This might delay in getting paid. Hence, keep your invoices in presentable and easy to understand format. Your invoice should focus on the following points:
- Company logo
- Clearly outlined payment terms
- List of product or services
- Items lists
- Contact information
- Invoice number
- Due date
- A personalized message
4) Be Clear & Polite
When you are into business there isn’t any other alternative for professionalism and it is important that it reflects in your invoices. The sound of your invoicing should convey the message of being kind and thankful, actually works in your favor. Make sure to clearly mention payment amount and the specific due date within invoices.
5) Define Time Frame
Usually, once you send an invoice, ideally you should be receiving payment soon but sometimes it gets delayed and also often customers forget to pay. In such cases, you should also consider sending a payment reminder. But what is an ideal time to send an invoice is hard to determine as it varies from business to business needs. So ‘one size fits all’ cannot be implied here. Based on your business requirements you can choose to send weekly, fortnightly or monthly.
6) Be Transparent
If your services involve another supplier or vendor, then be transparent and covey the same to your customer so that they know to pay you on-time. Generally, such payment transactions also include requesting a deposit to take care of 3rd party expenses.
7) Maintain Good Records
Keeping track of all the steps is utmost necessary. This way you’ll have your facts and figures organized with respect to sent invoices which is useful in case of any disputes. You can also sort your invoices based on the paid and unpaid status also.
All these practices will lead you to have an invoicing system well placed to boost productivity, enhance efficiency and also helps you to run your business sleekly. But the question is which professional invoice maker should you choose that have all the above features and functionalities?
In a Nutshell
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..