Invoicing is a common difficulty for small businesses, especially when they first start out. Late invoices can drain cash flow and reduce profit margins that are already tight. It is, however, avoidable. These three Invoicing tips can assist you in effectively sending and receiving payments on schedule.
Setting up solid systems for dealing with late payments will benefit you in the long run. To begin, decide when you want to take action in response to late payments. Next, decide how you want to contact your debtors: via letter, email, phone, or all three. Consider giving your creditors a monthly Statement of Accounts document that includes a list of invoices and the amount outstanding, so they know exactly how much they owe.
Another way to keep your cash flow healthy is to change your payment terms. Specifying when and how clients should pay invoices helps to protect your income. Many firms set 30-day payment deadlines for invoices, but if you want to be paid sooner, you might want to consider introducing late payment penalties and early payment discounts to encourage clients to pay on time.
Automating processes like invoicing is one of the simplest methods to improve productivity. Automation isn’t just for large corporations; small firms can profit as well. You need accounting software that automates the invoicing process for repetitive goods, amounts, and customers, allowing you to do things like sending invoices to regular clients automatically each month. Accounting software like QuickBooks Online allows you to handle your business’s finances, automate sending customized invoices to your customers on a monthly basis, and have a clear picture of your cash flow at any time, removing the concern of not getting paid on time.
Silicon Harbor Business Services is based in Mount Pleasant, SC. We provide solid, practical advice to small business owners and select individuals. We work with Quickbooks Online, Quickbooks Desktop, and Quickbooks Enterprise.
For a complete list of our services, please click here. Reach out to our team of Business Consultants at Silicon Harbor Business Services in Mount Pleasant, SC if you have any questions about online bookkeeping or business consultancy. We’d love to hear from you!