As a small business owner, you know that cash flow is one of the most important metrics for success.One of the most important principles that keeps a business’ cash flow active and increases its liquidity is the ability to invoice accurately and receive payment from your customers promptly. Whether you’re a freelance operation or a company with an extensive list of accounts receivable, good practices when it comes to your small business invoicing can be the difference between keeping the wheels rolling and feeling as though you’re stuck in the mud.
Here are some tips for efficient, fast and accurate invoicing that will keep your cash flow rolling along.
- Set your terms, make them clear, and stick to them. Make sure your clients are aware of the payment terms on a given invoice, and don’t be afraid to be authoritatitve when it comes to making them clear.
- Offer incentive. If a certain client regularly pays on time, might they deserve a bit of a discount? On the other hand: consider imposing penalties on latecomers to discourage further interruptions to your business’ cash flow.
- Create options. Offering multiple methods of payment, including digitally mediated ones like Paypal, makes it easier for your clients to pay you using whatever resource or method is most comfortable for them. Open more gateways!
- Embrace technology. Electronic invoicing was specifically designed to save small businesses time and money. Most online invoicing providers offer simple, ready-to-use templates that anyone can quickly update. Once a company has entered their contact information, payment terms, and item descriptions into the program, the information will be permanently stored and saved for future use.