Every startup owner knows the struggle and importance of dealing with invoices.Money is the core feature of your business and you don’t want to mess it up, especially when you are just starting off, right?
Everybody carries a manual of all the right things to practice in their business but its equally important to know what to avoid.
Invoicing software is the basic need for any startup.Invoicing is not a task that provides much stimulation or excitement, its a task that provides a steady flow of income. It is simply not enough to send out accounts to your customers. Following up needs to be an inherent part of the process.
Here’s a list of common invoicing mistakes every business owner must avoid:
1.Did you forget to invoice?
The most important thing in business is not to assume anything. You may have an ideal business relationship with a customer and that customer pays you rigorously But if you forget to send the bill, they may forget to pay you.
If you had forgotten once, how many countless times has it happened before, but in case you didn’t pick it up? Invoicing is a task that must receive priority.
2.Don’t put off what can be done now
The best system is to invoice right after the completion of any work. By doing this, you know that there is no chance for you forgetting during a busy spell or it slips your mind. The sooner you invoice your customer, the sooner you get paid.
In many instance if you wait to invoice, the customer has already forgotten they owe you the money and have allocated their funds elsewhere. You cannot afford to stunt your business cash flow.
3.State the terms of work clearly
Your invoice is the place you need to make sure that your terms of work and payments are direct and understandable. This is not when you can afford to be vague. A customer is not going to pay an invoice that he/she doesn’t quite know what it refers to.
If you clearly state the word carried out in detail and the terms they will have no option other than to pay you on time.
4.A detailed invoice is key
Misunderstanding do happen and this rings especially true when its time to make payments. Your invoices should leave no room for guessing or delays. Always be sure to include all the information that the customer and the governing laws of your country may require. These usually include:
- Company name and telephone number.
- Physical address.
- The name of the individual you dealt with as well as their contact details.
- Invoice number.
- Invoice date.
- Due date.
- Any applicable tax numbers relating to your company and that of your customer.
- Payment terms.
- A detailed listing of the products supplied or the work completed.
- 5.Payment options: free online accounting software
You must ensure that you make it easy for customers to pay you. Provide a variety of options so that there is no excuse for them not to credit card payments,direct deposited, and check payments are standard modes of payment. Also there are free accounting software available in the market. The more options you offer, the fewer excuses your customers can come up with.
6.Manners and politeness to go
Use your invoices as a channel to make your customers feel important and necessary. A simple thank you note or a wish for them to have a good day will work wonders in encouraging repeat business.