Cashflow is important for any business. Without sufficient funds being available, throughout the year, any company will struggle to operate. They can’t commit to taking on and delivering an order to a big new client if they do not have the funds available to buy the necessary materials to produce that order. So, every firm needs to take cashflow seriously and do what they can to strengthen theirs. One of the easiest things they can do to achieve this is to improve their invoicing processes. Read on for tips on how to improve your business invoicing…
Switch to using invoicing software
Tapping into the power of tools like those provided by freshbooks.com is a no-brainer. Modern business invoicing packages make it super easy to create and send an invoice. You or your workers can do it from their phone or a tablet using a handful of keystrokes.
Any business that is still using a spreadsheet and Microsoft Word to create their invoices would benefit greatly from making the change. It is relatively easy to make mistakes when you’re not using proper invoice technology and templates. It can also be time consuming – certainly, far slower than it is when you use a specialist invoicing app.
Embed pay links
Most of these packages include the ability to create and embed pay links into your invoices. This is important because you are making it as easy as possible for the person receiving the invoice to pay you. They just have to click the link and press a few keys. The easier you make it the more likely it is that the recipient will pay it the moment they open it.
When people do this it greatly improves your cashflow. Something that is vital for the financial health and viability of any business. As we mentioned above, good cash flow enables you to grow fast and take advantage of opportunities your competitors cannot. You can read more about this here.
Put in place proper payment tracking
Once you understand the role cashflow plays in growing your business, you will recognise the importance of chasing up later payments. If you have not already done so, put in place a robust process that enables you to spot a late payment quickly. As well as a step by step plan for chasing that invoice and getting it paid. The longer you wait, the more likely it is that it will never be paid.
This article suggests several ways that business can ensure that they receive timely payment. It is written with UK firms in mind, but much of what you will find there applies equally to businesses across the world.
It won’t take you long to improve the way you handle your business invoicing. Yet it will bring many benefits, so, why not put aside a bit of time this week to action the ideas outlined above.