Invoices are a rough but necessary part of the business. Doing business would be much easier if everything is up front, especially for small businesses that do not have the resources to hire professional invoice managers. Yet, a world that insists on being upfront with every transaction would not go past small-scale industry. Although you can’t escape chasing invoices, you can make a process a lot easier for yourself. Here are a few tips and tricks to help you manage your invoices more efficiently:
Utilize modern technology:
Gone are the days of manual writing of each invoice, delivering them, and then waiting to manually receive the payment. Nowadays, you can easily find software that will do all of this for you, like the Billdu invoice maker. This software works completely automatically, and alleviates the majority of stress-inducing problems that come with managing invoices. There is still a little bit of manual work involved, but that is just a fraction of what you have to do without the software.
Agree on a date beforehand:
There is no study done on this topic but it is fair to assume that a lot of the invoice-related issues arise due to one simple issue, miscommunication. You need to communicate clearly with a customer about the date and time when they can expect an invoice to arrive. They will be much more likely to pay quickly if the invoice was in their head for some time.
It’s a simple psychological phenomenon. If they didn’t know about the invoice date, they will think “well it just arrived, I still have some time,” when you send it to them. On the other hand, if you’ve already set a specific date and time; when it arrives, they will think “it’s finally here, I should pay it as soon as I can.”
Keep your process in check:
Just because an invoicing system or process works, doesn’t mean that it cannot be improved upon. Make sure to keep an eye on your processes. Try to find holes that can be filled and inefficient areas that can be polished a bit for smoother and faster invoice management. A constant cash flow is critical for the success of every business, and proper invoice management is the only way to achieve stability in this space. Just stay vigilant and respond to changing requirements in the system, and you’ll be good to go.