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.

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