We all know that the sooner we send out our invoices, the sooner we get paid. However, actually remembering to do it is an entirely different thing.
One thing that really helps is to review your invoicing processes to make sure there isn't something you could be doing to make invoicing easier or more effective.
We’ve compiled these four tips to help you create an awesome invoicing process to get money in the bank sooner:
Set a schedule
It’s hard to get around to invoicing when there’s paid work to be done. But you don’t get paid if you don’t do the invoices. We recommend sending out invoices as soon as you can, but if you’re struggling to make this happen, schedule 1-2 days per month to send out your invoices and push reminders for overdue bills out to your clients. And stick to that.
If you’re still struggling to fit in your invoicing, it might be worthwhile hiring a bookkeeper to tidy up your books and get you set up on a program like Xero that makes it super easy.
Invoice more often
Most businesses bill monthly. I get it – invoicing is a chore, so why do it more than you have to? The problem is, most invoices get paid late. This means you’re scrambling with cash flow issues every month waiting for clients to pay you what you’re owed.
Try shifting to weekly invoices. As customers see weekly invoices arriving, it creates a sense of urgency that means they pay quicker. Or better yet, get businesses locked into a regular automatic payment, instead of the need to invoice them at all.
Use the Xero invoice templates
If you’re not on Xero, you don’t yet understand the awesome time-saving power of their simple invoicing templates. Xero templates:
- Learn the price of your products and services.
- Calculate taxes automatically.
- Add all your contact details and your client’s contact details without having to enter them.
- Prepare tax paperwork for filing automatically.
- Match invoices to payments in your bank reconciliation so you can tell instantly what has/hasn’t been paid.
- Add up totals and calculating final prices.
- Email invoices to the client once they’re complete.
- Include PAY NOW buttons to facilitate faster payment.
- Enable you to send invoices from your phone, anywhere, any time.
Use recurring invoices
Recurring invoices are a great way to save time and hassle if you invoice for the same item/service and amount every month.
You have a couple of options in Xero when setting up recurring invoicing. You can:
- Save as draft – If you need to make some amendments to the invoice or the template has tracked inventory items. If you have tracked inventory items this is the option you should use.
- Save as approve – If the invoices are the same every time you can select this option. You will still need to send the invoice to the client.
- Approve for sending – It will flick out the invoice to the client at the same time every week/month.
Accept online payments.
Xero research suggests you’ll get paid 30% faster if you accept online payments. You have several options, from payment gateways like Paypal and Stripe to bank transfers and credit/debit cards.
Most payment gateways cost little to nothing to set up, although they do charge a processing fee (usually a percentage of each transaction).
These tips will help you build an awesome invoicing system where your bills go out faster and your invoices get paid on time.
Here at Bookbird, we’re all about positive changes to improve your business. We can provide you with that year-round visibility that’s so key to being successful in business, all while taking a stressful job off your hands. Go on, talk to the team at Bookbird about your business needs.