Dealing with invoicing may be a daunting task, especially for new business owners. And while it may come with some getting used to, invoicing is one of the most important parts of any business.
It encourages cash flow and keeps track of all the services that you render. Above all, it ensures that payments do not become delinquent.
Needless to say, creating the right invoicing strategy is no walk in the park. You will need to come up with the right strategies to ensure that you receive your payments in a timely fashion.
Donâ€™t know where to start? Donâ€™t sweat it. Here are 5 tips to using invoicing for services:
1. Have an invoice builder
The best way to get rid of the headaches that come with invoicing is by having an invoice builder. Instead of manually creating your invoices, you can look to amazing tools like â€˜Tipsâ€™ to get the job done.
Not only are the invoices automatic but you can custom-design them to meet your needs. Invoice builders not only allow the sending of invoices to clients but also enable online payment.
2. Avoid common delays
Even if you use invoice builders to send your invoices the right way, you may still encounter common delays like:
- Invoicing the wrong person which creates a back and forth and further delays in payments. For instance, you may invoice the project manager where the human resource manager is responsible for payments. Thus, the project manager may take time in issuing a response and connecting you to the right party.
- Unclear terms of payment that may frustrate the payment process. For example, if you think that your invoice should be paid within a month but your client thinks that they should pay when the project is completed then you will encounter payment delays.
3. Establish the right payment policies
Your payment policies determine how your invoice will be paid. First, you should find a payment method that works for both you and your client(s) and communicate it beforehand.
The last thing you want is to disagree with your client on how you should be paid.
Finally, you should set up a short-term payment policy that offers a 15-day or 30-day payment window after the invoice is received.
4. Keep your records
By keeping the records of the work that you are doing, your invoicing process will be easy. If you charge hourly, have a time tracker that will track the amount of money that you make. You want to have the right records to back up your invoicing.
5. Add a description
It is always best to outline what you are invoicing for. The nature of the description should be determined by the service that you offered. This keeps things clear as your client will know the service that they acquired from you.
Invoicing and tracking down payments is never fun but it is an integral part of the work process. Having an invoicing system will streamline your entire invoicing process.
The first step? Working with the right invoice builder for your needs! Secondly, always ensure that you communicate clearly with your clients about your payment needs and be in agreement before taking on any work project.