Invoicing Tips to Maximize Cash Flow for Your Small Business
Automate
invoicing. The right software can automate your invoicing process and cut
down on mistakes made by manually billing your customers. Wave,
Zoho
Invoice, and QuickBooks
invoicing software are great platforms to help you automate your
invoicing.
Number
your invoices. Be consistent with your invoice numbers to avoid confusion
and help find past invoices quickly. Some invoicing experts recommend that you
avoid labeling your first invoice 001, as customers can perceive a higher
number as a mark of established experience. So, start with a higher number.
Set short
payment terms. Be precise when you specify payment terms. Customers often
view phrases like “payment due upon receipt,” to be a bit more vague than an
actual date.
Communicate
with your customers. It’s common to send a reminder the day a payment is
due, followed by weekly reminders. Use the same point of contact for all
billing matters if you can; building rapport with an individual can grease the
wheels if a misunderstanding does occur.