7 Ways to Optimize Invoicing and Billing Process
Invoicing clients can be really distressing sometimes. You never know when exactly you will get paid. Generating invoices can also be a tedious job especially when done repeatedly every week. However, you no longer have to worry, because there are actually several ways you can apply to help you create invoices and get paid faster.
1. Set up your terms and policies.
Your payment terms and policies determine when and how your invoices will be paid. Before making a deal with a client, you need to explain your terms and policies to them first. This needs to be done so that your client isn’t surprised when receiving an invoice from you. This first step will also help you get paid in a timely manner.
You should also ask your client regarding to the time and method of payment they prefer since both parties should feel equally comfortable with the deal being made. No need to hesitate to tell your client about the consequences of a late payment. They will appreciate it if you can tell them everything in advance.
2. Make your invoices look professional.
Believe it or not, your invoice templates do matter. Your professionalism can be judged from your invoice designs. Impress your clients with well-designed invoices. I strongly recommend that you customise or personalise your invoices for different clients. While attractive designs are important, keep in mind that you should also keep your invoices simple and easy to understand, so you’d better not use too many ornaments.
3. Include complete and relevant information.
Don’t focus too much on your invoice templates. Focus more on the important details you should include on your invoices. A good invoice should include all relevant details such as; product or service description, order number, GST amount, shipping costs (if any), total amount, invoice number, due date, payment options, clearly defined payment terms, late payment charges, contact information and a personalised thank you note.
4. Send your invoices straight away.
The best time to send an invoice is as soon as your project with a client is completed or right after you deliver your product or service. Prompt invoicing basically leads to a faster payment. This will show your professionalism to your clients. When it comes to recurring invoices, I recommend that you send them on the same day (or date) every month to show your consistency.
5. Remind your clients to pay their bills.
If your client doesn’t immediately pay the invoice you have sent a few days earlier, then you shouldn’t hesitate to send them a reminder concerning the upcoming payment due date. You can do this a week or a few days before the due date. In addition to helping you get paid on time, sending reminders will also benefit your clients, as they won’t have to spend extra money on the late payment charges. Remember to keep your reminder messages professional and courteous.
6. Go paperless!
Nowadays, every business should have gone paperless. Providing an online payment solution and creating digital invoices will greatly help you improve the efficiency and effectiveness of your business operations. Most of your clients may also be more aware of their email than their snail mail. They will prefer a handy method of payment that allows them to pay their bills anytime and anywhere.
7. Automate your invoicing process.
If your business always deals with invoices at all times, the best way to improve your invoicing process is to automate it. Generating recurring invoices for multiple clients is very time consuming. Maintaining client details and manually checking their payment statuses can also be a back-breaking task. At times, you could forget about unpaid invoices and you’re not sure if you’ve reminded your clients of their late payments.
By automating your billing process, you will be able to focus more on other important tasks. An invoicing software helps you in many ways, from generating recurring invoices, customising invoices for multiple clients, maintaining client data, scheduling and sending reminders, tracking the status of your invoices and many more. I highly recommend that you choose a Cloud-based invoicing software, so you can easily create and send invoices anytime and anywhere.