I expect the title has already grabbed your attention as invoices paid quickly will always provide your business with a cash flow advantage!
Here are our five tips to get you on the journey to having your customer’s cash in your business bank account sooner rather than later.
Are you invoicing the correct amount - I would always urge you to demonstrate to the client the service or product you are invoicing in great detail. The more detail you include in the invoice will further highlight the product or service you have provided, and as a result there will be an appreciation of your service/product, this will reduce the opportunity to dispute and hold back on payment of your invoice.
When do you invoice – you should ALWAYS ALWAYS invoice as soon as the product or service has been delivered, why should you wait till the end of the month when your client may has possibly forgotten the value your business brought to them. Why not make this good practice within your business. A good cloud accounting product will allow you to do this both easily and cost effectively.
Forget about the postman – as far as invoices go the postman has no part to play, let him deliver the birthday cards and all those invoices for businesses who are not worried about when they get paid. Invoicing through the post is slow and costly (printing, stationery and postage) furthermore can you guarantee the invoice will arrive with the appropriate person?
The best option is to send invoices electronically through cloud accounting software, this will reduce the cost of printing, storage costs and postage. In addition once you know who is responsible for dealing with the invoice you can send directly to their email address, plus you can even monitor when they opened and read the invoice.
Make payment easy - it goes without saying if you want to get paid you need to specify how. This could easily mean just providing your bank details or you could add links to your electronic invoice through your cloud accounting software, to enable your clients to pay immediately through features such as GoCardless. Remember the sooner your client's money is in your business bank account the stronger your cash flow position will become.
Has the invoice been paid – you should always include your payment terms on your invoice be that 30 days or less. However, why not try 'By Return'. With some of the suggestions detailed above there is an increased possibility that will happen. With a cloud accounting system in place you will be able to easily monitor through the dashboard those invoices which have or have not been paid on your terms and as a result you can put actions into place to resolve the issue. A far cry from files in filing cabinets and lost opportunities to pursuit late payments!
I am sure you will agree that a cloud accounting software product has many benefits in respect of raising invoices and receiving payment at a much faster pace. If you would like to discuss implementing a cloud accounting product into your business please feel free to call.