Simple Invoicing Upgrades For Small Businesses
Simple Invoicing Upgrades For Small Businesses. Every small-business owner has to deal with invoicing, and it’s not as simple as it may seem. Invoicing is not just about getting paid; it’s about getting paid on time.
When it comes to accounting, the fewer accounts receivable at the end of the month, the better. Timely payment leads to predictable cash flow, which can help your business stay on track with projections and payments. Unfortunately, not everyone pays invoices immediately, and some clients and customers pay them downright late.
To help avoid the uncomfortable pain in the neck that is following up on unpaid invoices, make sure you make it as easy as humanly possible for customers to pay you, in full, on time, and reduce the number of hiccups that arise in the payment process.
Here are some invoicing tips on how to encourage prompt payment with very little effort on your part:
1. Correct Contact Information
Save your client or customer some time and aggravation. Provide current, comprehensive and specific contact information on every invoice you send out. It’s the least you can do to facilitate timely payment.
2. Simple Niceties
The second-least you can do to encourage timely payment is say please and thank you, and maybe “We appreciate for your business!” It costs you nothing to put a “please” in front of “pay within 21 days,” and it may save you having to follow up on that invoice on day 22.
3. Complete Payment Terms (Previously Agreed Upon)
Discuss payment terms before you start any sale or service, and include those exact payment terms, in full, on the invoice. If you talked about recurring payments, include that with the schedule. If the sale is final, include that. If payment is due in 30 days and you charge a 5% late fee each day thereafter, include that. In all cases, use language that would be extremely difficult for anyone, under any circumstances, to misinterpret.
