If you are running your business, you have probably discovered that learning hard can usually be the best way to learn something. However, some lessons are better to learn than to figure out by yourself. And when it comes to managing your invoices, you have probably made some major mistakes. In this article, you will be able to read about 8 invoicing lessons that you need to know. Let’s take a look:
Source: Small Business Trends
Contents
1. Set Your Terms
Keep in mind that you are entitled to set the payment terms for your invoices to suit your needs. It is no longer a rule to wait 30 days for the payment or wait until the 15th of the month. Instead of that, outlining a seven-day payment term is reasonable. You should be quite explicit with your customers about your terms, both when you give them a project pitch and when you send the invoice. Make sure that you state the expectations around the due date, late fees, how the payment should be made, and what might happen if the payment deadline is not met.
2. Chase the Overdue Invoices
Do not feel weird about asking for money that you earned. In most cases, the customer might have forgotten to pay, misplaced the invoice, or they have never received it in the first place. You can send a statement, but you should also pick up the phone since it is easier to discuss it with the client directly than to go backward and forward with emails.
Source: Small business loans
3. Value your Services
You should never feel guilty about charging for your time, services, or products. One of the most important things that you could do is value the service you provide and feeling confident about the pricing every time that you send an invoice.
4. Invoice at The End of the Project
Do not wait until the end of a month to send the final invoice, instead, you should send it as soon as you finish the project. With cloud software available, you can even send it straight to the job site. This is better for your cashflow, as well as your client’s as well.
Source: The Balance Small Business
5. Make it Easy for Yourself
According to the experts from Billdu, you can allow programs to do all the work for you. In the technology era, you can not subscribe to a cloud accounting software that will allow you to will be able to send the invoices with a few clicks, as well as see which ones are overdue.
6. Have Records that Can Back Up Your Invoice
One of the most beneficial things about using a job management program is that you will have an accurate record of the work you finished. Whether you send a breakdown of the invoice or not, you will feel better and more confident if you have the information to show the client.
Source: Cal Spec
7. Get the Correct Details from the Start
During the customer’s onboarding process, make sure that you get as much information as you can about the person, address, and department your invoice will be sent to. Sending it to the person in charge of the accounts can reduce the possibility of your bill getting lost. Software packages like the small business ones from Thryv can help you collect, store, and maintain your critical client details; learn more at https://www.thryv.com/features/small-business-software/.
8. Make it as Easy as Possible to get Paid
This one is quite obvious, but it is worth mentioning. Make sure that you check your payment methods, including the bank account details. Also, consider implementing links to online payment methods and if you are willing to accept cheques, include an address where they should be delivered.
Source: SaultOnline.com
Conclusion
By following the eight tips from the article, you will find out that invoicing does not have to be stressful and overwhelming, rather a reward for the time you spent working on something.
