What is the value of your outstanding invoices? For US small businesses, the average owed is $84,000. This adds up to about $825 billion in unpaid invoices for American small businesses.
This is a staggering amount of money to leave on the table for a small business. If you have too many outstanding invoices, the problem may not be with your clients. It could be with your small business invoicing.
Try implementing these five tips to improve and save time with your business invoicing.
The easiest method for speeding up the invoicing process is to stop manually doing everything. Start using software to automate the invoicing process. Look for an invoice management system that can handle the entire process from start to finish.
An invoice generator with business invoice templates will streamline the invoice creation process. This could include an in-progress or project completion invoice. You can also schedule reoccurring invoices to automatically go out on a particular date for clients with whom you have an ongoing relationship.
Some systems can also send out invoice reminders for unpaid invoices and accept payments. Having reminders go out automatically reduces the manual oversight required while also increasing monthly cash flow and reducing outstanding invoices.
2. Enlist Help
As the business owner, it’s tempting to think you should handle all of the invoicing. However, as your business grows, this becomes impossible. Hire someone with invoicing experience.
This streamlines the process because it takes the task off of your plate. It also becomes optimized when you empower your employee to utilize their knowledge of how to write invoices to improve your systems.
3. Don’t Wait
Prepare a business invoice as soon as you complete a job. Don’t wait to send the invoice because this only delays the entire process. The sooner you send the invoice, the sooner your client will make payment.
Integrate your invoicing software with the rest of your business systems. This ensures you know as soon as possible when you can invoice.
4. Go Electronic
The most common business invoicing advice is to make paying your invoice as easy as possible. The easier it is, the sooner and more likely your client will pay it. Email is the fastest delivery method.
Many invoice management systems will include a “pay now” button in the email. Once clicked, the payee can enter their credit card or bank account information. Thus, the client pays the invoice right away, and there’s no risk of the invoice getting lost before they have a chance to pay it.
5. Use Templates
Using templates can streamline the invoicing process by having ready-made forms that you simply fill out. All of your templates should have your business information and branding already included.
Then you can make templates for each client. If you have common products or services, you can have them programmed with their prices. Then it’s a simple matter of saving a new invoice and inserting preprogrammed information.
Improve Your Small Business Invoicing
By implementing these five tips, you can improve your small business invoicing. Focus on finding a management system that can automate the process with templates and scheduling. Then enlist help with skilled employees to take the load off.
Check out our other articles for more helpful business advice when managing your finances.