Getting paid for services rendered seems fairly straightforward. However, those just starting out with a new business may soon realise that there are pitfalls and challenges that can come when there is not a proper invoicing system in place.
Using an invoice app will improve your chances of getting paid quickly and efficiently. With an app on your mobile device, you can send invoices and accept payments while on the go, at home, or at the office.
Continue reading below to learn more about how to invoice with ease and efficiency.
The first step in running a business is to have a complete accounting software package in place. Secure cloud storage and access, a wide range of features, multi-user capability, and mobile application are key components of a quality program.
Once you have a system in place, then design several invoice templates with the most commonly used items. Include terms and conditions, accepted forms of payment, and due date with a late payment penalty clearly visible. Then you are able to edit a template as needed, quickly and accurately for each new client or customer. The old standard due date was 30 days from the time the invoice was made. With electronic payments and the current digital world, it is much more common for a due date of 7 to 14 days from the date of the invoice.
Many accounting systems have automatic reminders that can be sent out if a payment has not been received. Partial payment plans can also be put in place. Remember that once the invoice is sent, then the agreement is binding and payment is expected.
For certain customers, you may have to chase up payments with phone calls or late fees. Having a clear late penalty on the invoice and communication at the beginning of the contract can hopefully avoid the addition of the late fees. Keep detailed records of each correspondence and continue to call and send reminders until the payment is received.
Convenient and Easy
Online invoicing is the best way to guarantee a payment. In the current digital world, most of us make electronic payments at least several times a week. Being able to edit a template with a new customer’s details and purchase from a mobile app, and send it out almost immediately, can speed the payment process. This also saves a lot of time and money.
Where businesses used to type or write out invoices, go to the post office, pay for postage, wait for the letter to arrive, wait for a cheque to be sent back, deposit the cheque in the bank, and then wait for the cheque to clear, who has time for that? Now, the speed that an invoice can be made and paid in a few small steps with a good invoice application and accounting software is incredible.
With an invoice application, the process is quicker, faster, and easier for both business owner and client. If there is a dispute, it takes only a little bit of effort to update an invoice with a correction. Before with paper invoices, a dispute would mean making an entirely new invoice to mail out again and waiting even longer for payment.
Make Your Business More Efficient
The digital world offers so much to business owners, so take advantage of a complete accounting software package and collect payments at a much faster rate. Many software packages are a small subscription per month and include not only invoicing, but bank reconciliation, payroll services, inventory lists, and many types of reports to stay on top of everything in the business.