Nobody likes to follow up on late payment of invoices. However, sending payment reminders is an essential task that needs to be done consistently. If you do not do this, your business may quickly end up with negative cash flow.
As a freelancer, if you are a freelance community manager or if you work in the web professions, this is essential.
You know how time consuming it is to manage quotes, orders and invoices at times!
Ensure proper monitoring of its billing
Proper invoice management promotes stable cash flow and helps reduce the stress of keeping your accounts. This is why it is essential for the success of his business to have at least a billing solution.
You can even create a free invoice online, which will make it easier to manage your accounting from your computer. In this way, you will more effectively monitor your cash receipts, and/or your arrears. Another important factor is the follow-up and efficient management of your invoices because online it will be much easier for you to request a factoring.
For your billing to go smoothly, here are 5 essential tips that will help you better organize and track your invoices.
1. Send automatic payment reminders
Good invoice management software should allow you to send your customers automatic payment tracking reminders. These reminders may include the amount they owe and the payment deadline. You will then be notified if your client does not pay within the agreed time. You will also be notified when you receive payment.
Using efficient invoice management software can also save you a lot of time. Since your payment reminders are sent automatically, you don’t need to constantly check if your customers have paid you, since payments received are also saved automatically.
In addition, you do not have to contact your customers, unless they do not pay you. The automatic payment reminder feature will help you organize your invoices and cash.
2. Simplify the payment process
A simplified payment process makes it easier and more convenient for your customers to pay their bills. If you want efficient management of invoices and payments on time, make the payment process easier and more accessible for you and your customers.
Find an invoice management solution that allows you to update your invoices in real-time. Another option would be to create a spreadsheet or document that you and your customers could access and have access to at the same time. This way you can see when your customer is looking at and looking at their invoices.
In addition to real-time invoices, you can also send them by email or text. Another good idea is to offer several payment methods to your customers, such as online payments like PayPal, as well as bank cards.
Having multiple payment options encourages customers to pay earlier.
3. Automate invoice processing
Technology has made our lives a lot easier, thanks to the many tools we use in our personal and professional daily lives.
It is now more convenient than ever for you and your customers to automating billing processes.
By doing so, you will automatically transfer the necessary information to your customers. This is extremely beneficial for a company that has trouble managing its invoices or for those who procrastinate in the compilation and sending of invoices.
You can automatically transfer the processing, verification, resolution, approval, payment and storage of data. By automating your billing process, your invoices can be sent to all of your customers and verified in just a few clicks.
4. Implement late payment penalties on your invoices
Are your customers still not paying on time after sending payment reminders and despite the simplification of the payment process?
If the automation of invoice processing does not work, consider applying late penalties to limit the delay. In certain cases, you will be able to facilitate the receipt of your payments on time.
There are different ways to apply penalties, but always be sure to do so in small increments. The goal is not to secure additional income, but to limit late payments. In all cases, the penalties are governed by law. If you apply them, they must appear in full on your invoices.
5. Be professional and polite in your billing
It is important that you maintain professionalism in all aspects of your business, including billing. Even when you are dealing with a “bad pay” or unpleasant customer, it is best to always remember those good manners always benefit you, especially in the long run.
When you write your invoices, do not forget to include politeness. For example, if you ask your customer to pay on a specific date, write: “Please pay before April 30, 2020”. Or: “Please pay a 50% deposit within seven days of receiving this invoice. Always stay professional, because you build and maintain a lasting relationship with your customers
6. Personalize your invoices using templates
Perhaps you are able to stay organized, compile your data, manage your files efficiently and send your invoices on time. But you also want your invoices to be easier to read and to be designed efficiently. Furthermore ! it should be easy to add custom data to it.
Classic spreadsheets managed via Excel may, therefore, seem tasteless and not reflect your activity and your professionalism. Find a way to customize the models of your invoices.
And don’t be afraid to put a personal touch or use your creativity in your invoices. If you are an art professional, include part of your work and your drawings in the invoice. Or, perhaps you are not a great artist but you appreciate the unique documents.
Find models to spice up the visual of your invoices. There are many online and you can then use a document or spreadsheet to refine them. It is also essential to include your logo in your invoices, in order to be identified more quickly. Always use it and/or remember to highlight your identity at the top.
In conclusion on invoicing
Tracking invoices and payments are crucial to the success of SMEs and the self-employed. The amounts paid have a direct impact on the cash they have available to pay their own expenses.
A business, like a freelance, must use professional accounting software to monitor this. A good solution should be available online and accompanied by a dashboard. The letter indicating the total amount of paid and unpaid invoices, as well as the expenses and profits of your structure.