Best Tips for Efficient Invoicing for Small Businesses
No business can run without an invoice because an invoice is a vital document that is sent by the seller to the buyer regarding the purchases made and the sum due. It ensures that no business experiences debts.
If there are debts then it can affect the working capital of a firm. Hence, for any firm, invoicing is an important activity. Managing invoices can be quite tricky if you are a new venture or a small business. So read this post to know about some of the best invoicing tips for small businesses.
- Invest in an Online Bills Generator Software
Presently, you might be running a small-scale business with a simple process of debt collection. But as your business will expand, multiple customers will join in and handling all of them will be complicated. Hence, a great idea is to invest early in the online software.
Also, if you have different billing processes, varying rate of materials and offer discounts to some customers then handling all such calculations are complex. It is, therefore, better to leave such tasks to automated software.
Out there are numerous online invoicing and bill generating tools available that you can select as per your business’s requirements. Most importantly, online invoicing software will provide you real-time data in context to payments made to your bank account.
- Select an Appropriate Invoicing Template
One major problem that small businesses experience is that they no follow a standardized format for invoicing. This results in discrepancies as well as confusions over a period of time. Hence, it is first vital to have an invoice template that includes all vital details of your company like the logo, address, website, contact details, fax number, email address, and more.
Having such information is essential so that your client has all necessary details in hand to make the payment. This is to ensure that your customer does not have any reason to delay the payments.
- Follow a Schedule for Sending Invoices
Though you have a small team, this at the same time means that most of your employees are performing multiple roles. In this scenario, it is easy for them to forget sending invoices. This is one of the biggest mistakes a business can ever make.
If you are not sending invoices on time then you will not receive timely payments. Moreover, you are extending the credit period by yourself and giving others the reason to delay payments. Following this on a regular basis can result in a cash crunch.
Hence, it is great to set up a proper schedule for sending invoices and coordinate with the departments that all invoices are made on time.
- Use Mobile Devices for Billing
This is of immense importance for businesses to have a sales force. For the sales team, it is not possible to sit on the desktop every day. Also, if they will keep shifting the invoices to the main department then this can cause a delay in invoicing.
The best solution out to this problem is that equip your sales team with mobile billing solutions that are connected to your invoice generating software. This way, it will be easier to create bills and at the same time, it will be possible to access invoicing solutions from anywhere and at any time.
- Integrate Online Payment Options
The modern customers love online payment options. They prefer making payments in the easiest way possible. Hence, rather than sending invoices via post, it is best to email them.
Within the e-bill, you must integrate the accepted payment option, which can be through debit card, credit card, Paypal or any other means. Add a factor as per your convenience.
- Strategize for Debt Collection
No matter what kind or scale of business you run, there are always a few clients who will not pay on time and may have outstanding bills for months. Using online invoicing software can help you schedule reminders for the outstanding payments. You can set reminders at regular intervals, which will be sent automatically until payment is processed.
If there is a need then you can assign one of your team members to follow-up calls to collect the debt amount. This will ensure that you minimal outstanding that will turn into bad debts.
Establishing a small business is not an easy task, but practicing a few smart strategies can alleviate the pain and risks to some extent. Following a strict invoicing policy is one of them. So, follow the above-mentioned tips to make sure that your payments are made on time and your business never experiences crash-crunch.