Managing invoices is a necessary evil. Most small business owners would rather focus on developing and growing their business than deal with the intricacies of billing. But alas you need their business and they need your services – an invoice is that nice little document that contains the services rendered and what is owed to you. Invoices get you paid.
Taking care of your invoicing although may sometimes be tedious, will cement a lasting relationship with your small business clientele and will help you stay up to date on your latest financial information.
Lets Your Client Be Prepared
Sending out invoices in a timely manner gives the client the opportunity to gather his or her finances in order to be able to pay you. Stick to the agreed invoice deadline so that your client is not caught off guard by a surprise like a forgotten invoice.
Remember, both you and your client have a possibility to encounter many issues down the road. We can avoid having invoices be one of those issues by presenting the invoice as early as possible.
One less thing to worry about for you and your customer. After you have delivered your invoice, you have cleared your plate and will be ready to focus on other tasks while waiting for your cash to come in.
Continued Influx of Money
Sending invoices on time means cashflow for your business. You don’t want to wait until the last minute, or the last cent to send out the invoice to your clients. Having a steady influx of cash into your business means you have the funds to continue to improve and expand.
You absolutely cannot fall behind on invoices. As you continue accumulating a larger client base the invoices will quickly pile up. The key is to stay on top of your invoicing and not leave it to the last minute.
Waiting too long to invoice your clients can be detrimental to your small business success. If you let this build up too much, you are out there waiting for payments spending time on chasing down clients and not actually getting any work done. It becomes a time sink that can always be avoided.
Assess the Health of Your Enterprise
Properly timed invoices let you keep track of your cash outflows and inflows. This gives you a clear understanding on your business’ financial situation. It is necessary information if you desire to invest money in new emerging technologies, expand research and development, etc.
Build a Relationship
Properly timed invoices can create a reliable and a transparent relationship between your small business and your client.
Think about invoices from the customer’s point of view for a moment. Would you want to be informed of what needs to be paid promptly? If I were a customer, I know I would like to receive the invoice as early as I could.
Timely invoices can keep everyone honest. Getting used to sending invoices as soon as possible is great both for you and your customer. All the details are still fresh in your head; you know exactly what services were needed and what it ended up costing.
There is less chance of forgetting small details or terms and agreements between the two parties that can sometimes cause issues to arise later down the road.
Now Buckle Down
Let’s not procrastinate with our invoices. Stay dedicated and send your invoices out as soon as possible. You will form a good habit of dedicating important time on a task that gets you and your employees paid and your business running smoothly.