5 Tips to Streamline your Invoicing Process

A streamlined invoicing process is necessary to increase efficiency and improve cash flow.

In the absence of a streamlined invoicing process, problems can arise such as duplicate invoices, late payments and inadequate funds. To avoid these problems in your business, here are 5 tips that can help you streamline your invoicing process for getting payments on time.

1) Clarify Your Payment Terms

Defining your payment terms upfront is a great way of laying the groundwork before entering a business relationship. Some customers may have the tendency to make late payments, therefore, clarifying your payment terms in advance helps you get paid faster. Use clear words instead of ambiguous ones to discuss what is the due date and what are incentives of paying on time.

2) Accept a Variety of Payments

Flexibility in the types of payments you accept can make it easier for the client to pay for invoices. Sometimes the client is unable to make a payment if your payment options are too limited. Look for other methods of payment such as PayPal or credit cards to ensure you get paid on time.

3) Follow an Invoicing Pattern

Generating and sending invoices on a scheduled date is beneficial for both you and your client. You can avoid generating duplicate invoices this way and your client will know when to expect future invoices. Stick to a particular day of the week or month and send invoices on that day. Following a scheduled invoicing pattern will help you in predicting the payment trends and following-up on the previous invoices.

4) Use the Latest Invoicing Tools

Instead of the old-school way of generating and mailing of invoices, use of the latest invoicing tools, such as Quickbooks Online will help in streamlining the invoicing process. These tools gather all the information in one go and generate error free invoices. Also, focus on designing your invoices with your company logo and colour scheme so that the client understands that this invoice is coming from you.

5) Make User-Friendly Invoices

Often, confusion in payments comes up because of lack of adequate information on the invoice. To facilitate on time payments, make sure that the invoice contains all the information required for requesting a payment such as your company’s name, business number, details regarding the products or services provided by you, the total amount due, the due date for payment and the terms of payment.

If you don’t have a streamlined invoicing process, feel free to contact us at info@tailwindsaccounting.ca for a free consultation and we can help you develop a solution.

www.tailwindsaccounting.ca