THE IMPORTANCE OF INVOICING

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I have met with several clients and heard the same thing. They feel that their businesses are growing and staying busy but it seems like there is never enough money to cover everything. It is a common plight for many business owners these days. What seems to be the common problem is they are making the sales but having a hard time collecting from their clients. Here are three tips to improve payment of your invoices and increase cash flow :

1) Send your invoices out in a timely manner. Make invoicing a priority as jobs or services are complete. If you don’t invoice you most likely won’t get paid. Keep in mind if you only invoice at the end of the month you are essentially giving an automatic 30-day term to the clients you serviced in the beginning of the month.

2) Confirm how your clients want to receive your invoices. What may be convenient for you may not be the best for your client. Ask them if they want to receive their invoices via mail or email. Everyone has a preference. By sending the invoice the way they want to receive it, you have increased your chances of being paid quicker.

3) Make it easy for your clients to contact you. Make sure you have all your contact information along with your mailing address on your invoice. If your client has a question and your number isn’t readily available or they don’t know where to send the payment, you are forcing them to work at getting your information. Make it as easy as possible for them to contact you so questions can be answered quickly and the invoice can be processed.

If you don’t have a process for your invoicing, take the time to put one in place. It is always exciting to get a new sale or client, but if you don’t collect for it, then you are footing the bill.