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Sending invoices and keeping track of them might not be an interesting task, but there is no escape from it when you own a small business efficiently or work as a freelancer. So, it comes down to keeping up with your finances managing your business invoices in an organized and strategic manner to make it easy and effortless. The criteria for good invoice management is that it saves you time and effort, keeping an organized record of cash flow with no accounting integration whatsoever.
Here you can get to learn some important invoice management tips for your small business.
1. Choose a proper invoice template
If you are in search of an invoice template that you think will be perfect for your business, it might not be the case. But using a smart one can make your invoicing system manageable and in order. The payment options must be discussed prior to accepting and starting with the work. Talk to your client about the payment option that is convenient for him. Facilitate them with some payment options to decide:
- Multi-installment invoices – One option that you can offer in your invoice is a multi-installment, i.e. your client instead of paying you in one go, can pay you in manageable amounts that your client can deposit in parts over a period of time. For example, an initial deposit with 3 or 4 installments.
- Recurring invoices – If the project is an ongoing one for the same client, the payment option provided on the invoice will be recurring payment at regular intervals such as weekly or monthly schedule. Sending recurring invoices will also make your client accustomed to the habit of paying you on time.
- Final invoices – At the end of the project, you can send your client a final invoice that gives the complete description of the work that you have done on time along with the interim invoices that have been sent earlier. Even if the amount is paid to you in full, the final invoice must be sent to the client to conclude things for both you and the client.
2. Manage your invoices online
The best way to streamline your invoices is to manage them online. Avoid using paper invoices, or doing it manually can be risky, as it can make you lose track of the invoices sent to the client, or of the paid ones.
There are also invoice apps available on your mobile device, you can use these invoice apps easily to send invoices to your client to pay you with no extra charges.
3. Avoid delay in sending invoices
Make sure that you send an online invoice to your clients faster, with the understanding and agreed with a payment schedule with your client. If your clients have many questions related to invoicing or other business processes, consider employing a Facebook chatbot to automate the replies and speed things up. Avoiding delays in sending your invoice ensures better chances of getting paid on time. To avoid slow payment, take into account the issues, such as:
- You do not send an invoice to the wrong client
- You and your clients are agreed on the terms
- You sent your invoice during the working days and not on weekends or holidays.