One of the main things a small business needs to thrive is a consistent flow of capital. Promptly billing customers for the services and products your business provides is crucial when trying to avoid money problems. Every year, small businesses in the United States are owed more than $825 billion in unpaid invoices.
If you want to reduce the number of unpaid invoices you have, then optimizing your approach to invoice management is needed. Are you trying to improve invoice management practices? If so, here are some things you need to consider.
Improve Invoice Management With the Power of Automation
When dealing with a vast number of invoices, generating them by hand isn’t always feasible. If you feel like you are using an outdated approach to invoice management, then it is time to embrace modern technology. Luckily, there are a number of software programs that provide automated invoicing process management tools.
These programs allow you to do things like:
- Automate reminders of overdue invoices
- Create automated billing schedules
- Create invoices based on project proposals
- Issue credit invoices
If you want to completely modernize your approach to billing, then using only online invoices is a wise move. Finding an online invoice maker free will require some time and research. However, you can revolutionize your approach to billing by taking your invoicing digital.
Choose the Right Times to Send Out Invoices
Most business owners fail to realize that when invoices are sent out can make a big difference in whether they are paid on time. While using key invoicing milestones to dictate when bills should be sent out is somewhat effective, it can also be inefficient.
Many entrepreneurs have found that sending invoices out on the weekend speeds up the payment process. On average, invoices sent out on weekends are paid 10 days faster than those sent during the week.
If you bill on a monthly basis, then submitting bills on the 1st of the month is advisable. Invoices submitted on the 1st of the month are paid eight days earlier than invoices sent on the last day of the month.
Avoid Invoicing Errors At All Cost
One of the main things that can hold up the invoice paying process is errors. If the deadlines for invoices or the actual items on an invoice are wrong, a customer will avoid paying it until these errors are fixed. If you want to speed up the invoice-paying process, then you have to work on eliminating errors.
One of the best ways to catch invoicing errors before they are sent to customers is by using state-of-the-art invoicing software. Most invoicing software programs can alert you to these errors and provide you with advice on how to fix them. This is why having this technology in your arsenal of tools is something you should view as a priority.
It’s Time To Improve Invoice Management
As you can see, there are a number of things you can do to improve invoice management. By implementing the suggestions in this article, you can make getting paid much easier.
If you are looking for more tips on improving your small business finances, check out the rest of our blogs on this subject.