10 Tips to Establish a Flawless Invoicing Process
Does your business suffer from a complicated invoicing process? Are you looking out the best ways to have a streamlined process for invoicing? Well, this post will answer all your queries related to how to have a smooth and simple invoicing process.
Having a complex process of invoicing can result in increased struggles to make on-time payments from your clients. As a result, you can end up having huge outstanding, delayed payments, and ultimately your business will suffer.
To ensure that you never fall into the trap of delayed or untimely payments procedure, you must adopt a perfect invoicing process for your business.
Here, check 10 best tips to create a flawless and smooth invoicing process for your business!
1. Clearly Define Your Payment Rules
If you are into business, you definitely want your clients to follow certain rules in terms of payments. If you haven’t established any such rules to date, it is essential that you do it right now.
There are various aspects to consider while establishing your payment rules. For example, you must consider the time duration that the client can expect his project, charges for extra revisions, the date you will send the invoice, and more.
Once your payment rules are defined, clarify the same to your clients. Also, clarify the maximum time limit you can wait for the payment. It is better to speak to your clients about such rules before starting the project so that there is no mass confusion during the invoice due date. This way, you can avoid delays in payments.
2. Send Invoices on the Scheduled Date
You can run an efficient invoicing process for your business only when you maintain consistency. Pick a suitable date for sending invoices and send invoices on that particular date.
Avoid making delays in sending an invoice as it will ultimately result in delayed payments. Continuously practicing it will help your clients to know when to expect your invoice and when they have to pay.
3. Understand Your Clients
Not all clients are the same. Every client has a different prospect, and hence, you have to understand it before you start working with them.
You can either ask questions over the phone or through an email or give them a questionnaire to fill out.
Use this opportunity to learn about their finances, their paying capability, and preferred modes of payment. Such information keeps potential setbacks away, particularly when invoices are rolled around.
Make sure you accept the form of payment they use. Otherwise, you must negotiate or discuss the same before starting work. Based on their preferences and your convenience, you can even set the payment module to monthly, weekly, or bi-monthly basis.
4. Create Detailed Invoices
It is of utmost importance that your invoice clarifies all key details, which are important to help your clients know everything they require to make payments promptly. For example, you must include your company’s logo in the invoice along with other details such as business name, contact details, address, your name, and more.
Including such information in your invoice will help your clients to know immediately to whom the invoice belongs and how they can contact. If your payment rules include late fees, you must mention the same in your invoice format. Just make sure to clarify the late fee charge so they can clearly know the price they have to pay in case they delay the payment.
If it’s difficult for you to create professional-grade invoices, you can use an easy invoice generator tool, www.bills99.com.
5. Maintain Consistency
It is a great idea to be flexible with your clients. However, you must maintain the consistent inflow of cash in order to smoothly run your business.
Hence, the best approach is to invoice more frequently, like on a bi-weekly or weekly basis. This is a great idea to deal with clients who are late payers.
6. Set Payment Reminders
Just like you, clients are also people. Hence, they may forget about making a payment, especially when you set weekly payments.
To make sure that your payment is not delayed, you must set automatic payment reminders. Automating the process is a great way to make sure that your client does not forget about the payment and your payments are made on time.
7. Agree to Online Payments
Most of the businesses these days make payments using debit or credit cards, or with the help of online payment portals, such as PayPal. To make sure you have a smooth business operation with such businesses, you must accept payments made online.
An easy way to this is to adopt an online invoicing tool, which will not just ensure that smooth payments are made, but will also keep a track of payments that have been made and which are still pending.
Sending an email through invoicing software will ensure that your client can make the payment by just clicking on the link mentioned in the email.
8. Personalize Emails for Payment
Maybe your client does not use online payments and requires some help. In such cases, they may put your invoice to the side to pay later.
An ideal way to deal with this issue is to send out an email a few days later to ensure they don’t require assistance. You can personalize the email and send it before the automated reminders for payment roll in.
9. Keep a Track of Delayed Payments
Your business can start to sink if you stop tracking late payments. You must keep a track and treat late payments so that they do not affect your business.
You have to maintain a consistent flow of revenue to keep your business running. You would not be able to do this if your clients go away without paying.
Have a process for collection to make sure you don’t have delayed or outstanding payments.
10. Select a High-Quality and Efficient Invoicing Platform
You require an invoicing platform to create and send professional-grade invoices. There are numerous tools available online, but one of the most efficient and reliable ones is www.bills99.com.
This is an amazing platform that comes with templates to select from and the potential to upload your business’s logo. It also lets you save your clients and payment data, so you don’t have to enter the details every time you create a new invoice.
It comes with an easy-to-use dashboard and automated payment reminders that make it easier to manage invoices. You can track all your invoices, set reminders for delayed payments, and even estimate the total money earned in a month, several months, or in a year.