One of the major reasons for establishing a business is to make a profit but you cannot generate income if there is a pile of debt to be collected. As a document that describes details about a product given to a buyer, invoicing is quite necessary for small businesses. A well-written invoice gives detailed information of goods or service rendered, including the amount and the period a buyer is expected to make payment.
As essential as an invoice is, most entrepreneurs see it as a pain, which they would rather avoid completely. These tips will simplify the complex process of invoicing and increase your chance of prompt payment.
- Use cloud-based invoicing system. Accounting system has gone beyond pen and paper to online accounting software. With so many tasks at hand, small business owners need to be constantly reminded of some of the less exciting works. Cloud invoicing tools like MyBooks make automatic invoicing easier and faster. It also keeps your invoicing records safe, secure, affordable and makes payment convenient for the buyers.
- State the time of payment concisely. Ambiguous invoicing can lead to conflict between you as a small business owner, and your buyers. Prompt payments by the buyers ensure the growth of your business. Therefore, you need to be clear and precise while stating the schedule of payment. By making the expected period of payment clear to the buyer, you avoid the risk of bad debt through miscommunication.
- Keep track of your invoice. Timely and polite reminder of buyers when a payment is due is one of the extra services you could offer as a business owner. Constant communication between you and the buyers set you aside from other sellers. This improves patronage, increase sales and promotes growth. Be sure to be firm but polite while reminding a buyer of a due payment as this shows how serious you are without sounding rude.
- Be mindful of invoicing language. Keep it simple and clear. Make your invoice easy for your clients to understand. There must have been an agreement even before the transfer of item from you to the buyer. This agreement must be clearly defined. The term of payment, contain when to pay, how to pay and what to pay for, the clarity of this term increases the chance of being paid on time.
- Solve payment problem. With the introduction of online payment, transfer of money is now faster. Consider different means of payment before choosing any suitable methods. Do not just rely on the traditional bank transfer, use online payment platforms and ensure flexibility in the way you accept payment. You would have different clients with a varied preferred method of payment; you can solve the problem of flimsy payment excuse by adopting more than one payment option.
- Keep a record of your invoice. Keep a good record of your invoice items for later reference. By automating your invoice, you will be able to track and label invoice correctly. This allows you to address any invoicing complaint made by your buyers.
Invoicing does not have to be tasking, with MyBooks Cloud Accounting Software, you can simplify the complications of invoicing.