Managing invoices is not one of the most interesting tasks. But, as a small business owner, you need to do this to keep your cash flow in check.
Thus, it is a must to use online invoicing software to manage operations even if you are starting out. Besides, good invoice management can help you build good customer relations, say goodbye to accounting woes, save you time, build regular cash flows, and reduce the workload of your admin department. This guide will detail how you can manage invoices with ease and make your processes smooth.
1. Pick the Right Invoice
Let’s be honest, there is no perfect invoice template. But, using one can help you stay ahead of competitors. Please remember that different invoices will be required for different projects. So, before you start working, sit with your clients and understand the payment schedule. You can then work out a plan that works best for both parties. Agree on a plan that works best for you. Here are some plans that might fit your bill.
A. Multi-installment Invoices
In this setup, you receive milestone invoices and some form of initial deposit. Whatever schedule you choose, make sure you send out the final invoice with a detailed description of the services you have provided.
B. Recurring Invoices
If you have been working long with the same client, you can set up recurring payments with your online billing software. All you need to do is choose an interval and make your clients follow the same suit and get in the habit of paying before or on time.
C. Final Invoices
Once you have completed your project, you will need to send a final invoice with interim invoices. Make sure you mention all the invoices that have been paid.
2. Manage Custom Invoices Online
A good way to reduce hassles and get going with invoice management is to use customized invoices. Online billing software will help you eliminate paper and boring invoices from the equation. Paper invoices do no good but add to your pile of papers. Besides, you can never actually track if have sent out invoices or it has not been paid. Online invoicing software lets you make custom invoices online in no time and even keep track of client payments from your mobile or computer.
3. Avoid Delay
Just because you are using online invoices there is no point in delaying it. Send it once you have completed your project. These are some issues you might face when sending invoices. You must see Zintego.com.
A. Sending Invoices to The Wrong Person
If you send invoices to a person who is not the key decision-maker, you will end up in a long cycle of back and forth and eventually get late payments.
B. Ambiguity on Payment Terms
If you think you should receive your payment in 1 month but the client is waiting for project completion, you are already in trouble. To prevent the situation from going worse, set clear payment terms and make sure both parties agree to the same.
C. Sending Invoices on a Wrong Day
If you don’t understand and abide by your client’s payment schedule, you can expect late payments. Sending an invoice during the day is better.
D. Keep Records Clean
Yes, invoicing mistakes are common. With invoicing solutions you have the option to edit them and get going. You can do it with your mobile apps anytime anywhere. While you cannot delete an already paid invoice, you can always choose to reissue a refund to keep your books in order.
5. Experiment with Invoices
Now, we don’t say send a net-30 invoice in replacement of the net-7 invoice. All you need to do is make your invoice stand out and one that increases your brand reputation.
Your customers will be receiving multiple invoices and the only way to make a mark in their minds is by customizing your invoices. You can also choose to offer multiple payment gateways and add their links on your invoice to get faster payments.
Wrapping Up
Using these simple but effective tips, small businesses can easily manage their invoices like a pro. Be it making custom invoices online or sending out payment reminders, online invoicing software does it all! So, don’t wait any longer and get your online billing software to access the best accounting and invoicing features.
