Streamlining the Invoicing Process
While invoicing may not be the most enjoyable part of running a business, it is crucial to keep any company running. With the pandemic creating many challenges in cash flow management, it is now more important than ever to have a strong invoicing system.
Here are three tips to improve your invoice management.
- Establish clear payment terms
Before entering into a contract or payment agreement with a client, make sure to explain your payment terms and policies to them. For example, if your terms are to receive payment within 15 days of issuance, let them know that up front. This allows your clients to avoid unwelcome surprises and fees when they receive invoices. Establishing this level of transparency also helps to build a stronger relationship with your clients.
- Know your clients
To ensure you receive payments in a timely and convenient manner, it is important to understand how your client behaves and their concerns and needs. Do they have a particular time of the week or month when they receive payment from an employer or their own clients? Do they prefer paying via cash or mobile money? Having a brief conversation with your clients can allow you to tailor payment terms to their cash flows and preferred methods of payment, which will make it easier for you to collect what is due. This can also help you understand when clients might require new deliveries of your product or services.
- Go digital
As businesses start shifting online, many companies expect digital payment solutions that allow them to make payments at any time from anywhere. Providing an online payment solution can save time in the invoicing process, allowing you to focus more on other important tasks. Digital solutions can also help you increase savings by reducing your expenses on delivery fees, paper costs, or additional staff or programs to handle the invoicing process.