Sealing a business deal with customers sounds excellent, but what might be challenging, especially to small businesses, is invoicing. If customers do not make the payments on time, this may take a toll on your business cash flow. The good side of this is that you have the power to make your customers never ignore your invoice. Below are five ways that billing services will help improve your business
1. Create a Simple Invoice
You don’t want your invoice to be ignored because it’s hard to read and understand. Make it straightforward by indicating all the amounts, design it to attract the user, let the totals be well captured, make sure that your payment details are accurate. Your invoice should be error-free because this is an assurance of delayed payment.
Customers are likely to make the payments immediately after they are invoiced, better even if they don’t have to take so much time to go through the invoice.
2. Invoice Immediately
Before starting on a project, you have to agree with your customer on payment terms, including when to invoice. Ensure you invoice immediately after completing the project, as agreed, failure to which the customer may ignore your invoice or may not take you seriously. Remember, delayed payments affect your business’s cash flow and its short and long-term sustainability.
3. Follow up Unpaid Invoices and Introduce Penalties
Just because you signed billing terms and conditions does not mean it just ends after sending an invoice. Following up on an invoice increases the chances of timely payment. Notify them by sending emails days before the due date. Most unpaid invoices are either lost, misplaced, or not received, so don’t hesitate to send a reminder.
When customers do not pay you on time, ensure that there are measures to protect you and your business by motivating customers to make timely payments. For example, charging penalties for late payment should not be an issue with customers as long it is well explained in your terms, and because they don’t need that extra cost, they will always pay you on time.
4. Use Billing Software
Accounting software is taking the place of accounting books fast. Moreover, some of this software is easy to use cost-effective. For example, the use of Care Tracker emr by professionals in the medical field has enabled the practitioners to easily bill patients without employing a professional accountant.
The use of the software is important because it reduces cost, saves on time, and it’s easy to use once trained.
5. Accept all forms of payments
Give your customers the freedom to pay you using the payment method that seems most appropriate to them. In this case, you have to be flexible as a business as long as they are safe.
These may include;
- Mobile money transfer. This payment method is getting popular due to its efficiency and affordability. Just be sure to use an application that allows such payments.
- Bank transfer. It is the most common and affordable way to make payment; once the customers have your bank account details, they make payment directly to your account.
- Online money transfer. This type of payment is convenient for transferring money internationally, and it just takes a short time to receive payments. E.g., PayPal, Skrill, etc.
Your business cash flow determines its growth and sustainability. To achieve long-term financial goals, ensure customers make payments on time by implementing the right strategies to receive payments on time.
As a business, you can motivate your clients to make payments promptly, even the hardest ones. Remember, successful companies have fewer debts.