How To Invoice Businesses So You Always Get Paid
Nothing is more annoying in business than non-payment by a client. You put in a tremendous amount of work into a project and then they refuse to hand over the money for your hard work – it can be devastating.
The trick here is to put a system in place that makes it much more likely you’ll get paid. To do this, you’ll want to focus on your invoicing.
In this post, we discuss how you can optimize your bills so that you always get paid.
Send Out Reminders In Advance
Don’t give business clients an invoice and then expect them to pay you in the next 30 days like clockwork. That won’t work. Instead, provide them with automated, timely reminders, letting them know the date they need to pay by.
Good practice involves sending out a reminder seven days before an invoice is due, and a second one on the day before if they still haven’t paid. This way, you can avoid the excuse that they simply forget or the email got through to the wrong person.
Use Invoice-Generating Software
Manually creating invoices is a painful process. You first have to calculate the work you’ve done and then use a tool to generate the invoice itself. It’s not fun.
That’s why most brands now use invoicing software. This helps you save time and makes invoice processing more efficient. What’s more, you can connect it to your CRM or sales software, letting you bill automatically, depending on the services that business clients use. Additionally, Using digital invoices will save you money on professionally printed forms. You won’t need to send your clients paper documents. Electronic payments and sending digital invoices make it possible to have more control over cash flow without visiting the bank every time.
Be Clear That You Will Stick To Your Collection Policies
While an invoice is a polite request for money, you should be clear that you will always stick to your payment collection policies. The Commercial Collection Bureau, a debt collection agency, believes that brands need to be firm with their customers. If they provide value, they must demand payment in return.
Always list the actions that you will take in the event of a late payment on your invoice. Get a legal professional to advise you on the precise vocabulary you should use for your particular industry or sector.
Make It Easy To Read
If you send clients invoices written in font size 8, they are liable to ignore it. Just like regular customers, business clients want invoices that are easy to process.
Make it so that the person reading it can glean all the information they need upon receipt. Don’t hide total payment due (or other important figures), in the small print.
Send Out Digital And Paper Invoices
Clients will sometimes pay invoices late because they don’t see them. For this reason, it is a good idea to send out both digital and paper invoices – one to their email inbox, and one to their premises.
Also, send out invoices in a prompt fashion. If you appear laid-back in your approach for asking for money, clients will be laid back in their approach to paying you. You have been warned.