Do you find that your clients never pay you on time? This can make life incredibly difficult for any business owner, no matter what industry you operate in or the size of your company. After all, cash flow is one of the most critical components with regards to business success.
It is easy to assume that there is nothing you can do if your clients aren’t paying you on time. You cannot complete the transaction for them. However, are you contributing to the problem? If you don’t send out your invoices efficiently and professionally, you could be adding to the issue of late payments. If you are to get paid on time, efficient invoicing is essential.
Make sure your invoice terms are stated clearly
You need to have payment terms and place, and all clients need to be aware of them. For example, you could put ‘please pay within seven days, as per the terms and conditions of our agreement’ on the invoice. Of course, this is something you cannot merely add to your invoices without prior warning. If you have never discussed payment terms with your clients, this is why your cash flow is suffering. If they don’t feel like they have a deadline, they are never going to make an effort to pay you on time. Now would be a good time to email all of your clients and let them know of your new payment terms, which will be effective from their next invoice.
Send out your invoices promptly
How do you expect your clients to pay you promptly if you are not sending your invoices on time? As soon as the work has been completed, you should send out your invoices. If you don’t, clients will assume that you are in no rush to be paid, and your payment will fall to the bottom of their list of priorities. There are plenty of software solutions like Travelers ePay that make it easier for you to send out your invoices more efficiently. You can eliminate paperwork by emailing invoices, which will save you a huge amount of time and result in you getting paid quicker.
Consistent branding and professional templates
You should have an invoice template in place, which you use to send all of your emails. It will take you way more time than is necessary if you put together your own invoice each and every time you bill a client. Not only this, but you need to ensure your invoices are branded effectively so that they fall in line with your corporate image. A lot of business owners also make the mistake of incorporating too much information on the invoice. Unnecessary fluff will only make the recipient put the invoice off, as they don’t want to go through the hassle of tackling all of the information printed on it. Instead, make sure you stick to the necessities without leaving out anything important.
Positive cash flow is essential for any business. Handle your invoicing more efficiently, and you will reap the rewards in the long run.