Generating and sending invoices can be a time-consuming process. Still, it's not a process that should be skipped or ignored. A properly designed invoice helps a business get paid and provides legal protection for both parties.
Asking your clients or customers to pay an invoice isn’t the highlight of the day for business owners. However, it’s an essential task that will make or break your business.
Here are our 7 top tips when setting up a killer invoicing system:
1. Pick an invoicing system
There are dozens and dozens of invoicing systems and they all seem pretty similar right? Wrong! The invoice system you use can make a difference in how quickly you get paid. For example some invoicing systems will send automatic payment reminders so you don’t have to. They can also be integrated to your credit card payment facility allowing customers to click on the invoice and pay immediately. Remember, you want to make it as easy as possible for your customers to pay you!
2. Input customer information and standard billing items
When sending out invoices it can be monotonous and time consuming. If you already have the customer information inputted and you have a list of standard billing items it will cut down on the time it takes you to get your invoices out. This will prevent delays in invoicing and therefore delays in payments.
3. Establish payment terms and policies
Making it clear for all parties what the expectations are is important. If clients know in advance that you expect a deposit up front and the rest on completion then there is no confusion or excuses. For ongoing clients consider having a contract in place that outlines your payment terms and what the consequences are for non or late payment.
4. Professional invoices
Make sure your invoice is professionally presented. If you take this area of your business seriously then customers are more likely to also. Ensure that it contains your logo, contact information and ABN. Where required ensure that it complies as a tax invoice with the correct GST displayed.
5. Keep good records
It is essential that you keep good records and know who has paid and who hasn’t. This way you can follow up in an appropriate time frame. You want to make sure that you are reminding the right people.
6. Keep it professional
Always keep it professional and polite. It is frustrating reminding people to pay, but you do need to stay calm and professional. There are avenues that you can follow if you aren’t getting anywhere but make sure that all of your direct interactions remain calm and polite.
7. Know when to get help
If you are struggling with your invoicing whether it is getting invoices out, reconciling them, or chasing bad debts then it may be time to outsource. At Azure Group we offer full service support with all aspects of accounts receivable.