If the lockdown has taught us anything, cash flow is vital – particularly if you are a freelancer, consultant or entertainer. Conversations with customers about overdue invoices can be awkward and sometimes the biggest reason for putting these chats off is that small businesses want to protect their customer relationships.
However, making use of a highly efficient accounting procedure, or cloud-based software, will do a lot of the heavy lifting for you when it comes to cash and invoice management.
Here are a few more ways you can reduce the cash flow risk with your clients.
The best time to send an invoice is immediately. Modern accounting solutions offer mobile apps that allow you to send an invoice instantly. Then, once you have sent the invoice, let the client know, so that they can process it. This leaves no room for confusion about whether or not they received the invoice.
ACCEPT MULTIPLE FORMS OF PAYMENT
The default payment option on most invoices is a bank EFT. But you can also offer more efficient payment options, instant EFT, PayFast and Peach in addition to the usual bank transfer. Cloud-based accounting software such as Xero lets you add a ‘Pay now’ button in an e-mail invoice. This allows customers to settle the invoice in a few clicks. By making it as easy as possible for customers to pay you, they’re less likely to delay.
KEEP AN INVOICE TIMELINE
Cloud accounting software keeps track of exactly when an invoice was sent and when it was viewed, in the same way that an e-mail marketing solution shows when an email was opened. You can set reminders for yourself and your client. Now that they know that you can track your invoices they’re more likely to pay on time.
MAKE YOUR INVOICES CLEAN AND SIMPLE
Don’t clutter your invoice with unnecessary information. When the client can see important information at a glance, like an amount owed, banking details, and payment terms, it’s easier for them to process the invoice. Most cloud accounting packages include several invoice templates for your branding.
Need more information about the cloud accounting and payment solutions most suited to your operation? You can book a call or appointment so that we can talk, obligation free, about your business needs, or send us an e-mail to get the conversation going.