It’s the dreaded story that is a constant headache - invoicing. Having to prepare your invoices, send them out, chase up clients, organise payment; only to repeat it again next month can be tedious work. That’s why we’ve put together a list of ways you can improve invoice management, so you don’t dread the process every time it needs to be done.
Know your workflows
This might sound simple, but it is important to establish a workflow that is easy for everyone to follow. This way, you will know that your invoicing is being done properly, and avoids any confusion of what needs to be done. This can also help you keep track of multiple invoices. Workflows for each business will be different, which is why you will need to look at the current invoicing process that is in place for your business.
You may not want to be seen as the person who chases up money so quickly all the time, but invoicing immediately after a job is finished means it’s at the top of everyone’s mind. This avoids the forgotten invoices that need chasing up months down the track, and helps you stay on top of who needs to be invoiced.
Invoice throughout the month
Lots of businesses will take care of all their invoices at the end of the month, but you need to think about how realistic this is for you. This follows from invoicing immediately, where you and the client may be busy with other jobs by the end of the month so the invoice isn’t a top priority. It also means less work for you at the end of the month, because you don’t have to deal with a huge pile of invoices and payments.
Invoicing throughout the month also provides you with a steadier stream of income, as you space your invoices more evenly.
Let technology do the work
If you’re still creating invoices in spreadsheets and then sending them to clients by email, there’s a better way to be spending your time. If you're printing invoices and sending them by mail it's even more time consuming. You're unnecessarily adding extra days to the payment process. Cloud based accounting software and debtor management systems, like Apxium, makes the process easy for you by generating personalised invoices and reports, sending invoices and follow up messages, and processing payments.
Imagine what you can do with all the spare time it’d allow!
Remember that effective invoice procedures can lead to better cashflow in your business. Faster, more transparent billing means faster payment, which is something every business can benefit from. So take the time to incorporate good invoice management into your workflow. It may take some time to perfect the process for your business, but the time and money it will save you in the long term will make it worth it.