If you’re here, you’re here for a good reason. That reason being, to get your invoices paid by your customers or clients on time!
In 2020 alone, the UK saw close to 6 million small businesses.
And it’s no secret that they play a vital role in any countries economy.
Given the fact that these SMEs are still growing and gaining traction – maintaining a healthy cash flow is very important to them.
This is jeopardised if clients/customers do not pay invoices on time or face other difficulties when it comes to getting paid for goods or services.
There are lots of things a small business can do to get their invoices paid faster but here are 5 that are really going to make it happen.
What makes up an invoice?
Take note below of this itemised list of what you always need to include on an invoice – no matter what!
- Supplier Information: Your company name, address and contact information.
- Buyer Information: Their name, billing address and the contact information you have for the,
- Important Invoice Dates: Issue date, payment due date, delivery date and payment terms.
- Product/Service details: Make sure you confirm the quantity, the CPU & description
- Invoice Amounts: Total Amount Due, Tax Discounts and early payment discount.
- Payment Instructions: Bank account information and accepted forms of payment.
Now you know what exactly to include on your invoice here are some of our best advice to get your invoices paid quicker and with ease.
Simplified Invoice & Design
Have a thought for simplicity and make sure all the details are available to your client at the initial glimpse.
This way, you and your client can both have complete transparency when it comes to payment.
For example, clearly itemised products, try not to overwhelm the customer with the information they don’t need.
Here’s an example of a simple, straightforward invoice.
Some more tips here include;
- Always include a date on your invoice.
It might seem straight forward but you would be surprised. Many businesses manually create their invoices and forget this simple detail.
If you are using invoicing software such as Enterpryze, the date is generated automatically, updating your records instantly.
- Address the individual and not the company
The address fields on an invoice will contain the company name, but the invoice itself should directly address your customer, i.e who approved the purchase.
Two things will happen here;
Your invoice goes to the right person, without fail. Secondly, a personal touch is always welcomed and give your customer a lasting impression.
- Always use an invoice number
Always include an invoice number on every invoice, simply to keep track of payments and to have a reference point for you and your customer that you can access quickly.
You should also include your logo and implement your business branding through the font and font colour.
Without a doubt, businesses should be automating day to day proceedings as much as possible.
According to Salesforce (2020), 58% say they spend too much time logging sales data and client notes.
Manual data entry is a thing of the past and the quicker businesses realise it – the better!
Imagine a customer scanning a QR code and their payment status updated immediately.
Here are some other automated responses you and your business should implement.
- Be sure to include an appreciation message from your business
“Thank you for choosing ___. We’re excited to have you on this adventure with us!” will do the trick.
Keep it friendly and light but try to show off your personality! You will be surprised how good messaging and brand values have against a consumers attitude to companies.
- A feedback form is also a good idea
Hear straight from the horse’s mouth about their experience.
Even ask them is it okay to put their glowing review up on your social media, win-win! Simply set up an automated email response.
- Payment reminders!
Send automated messages to your clients with a gentle reminder that’s the payment due date is coming up.
Here’s another guide that shows you common mistakes to avoid when issuing invoices.
Transparent Payment Terms
You and your client should be able to easily identify how much each item cost. Not only that, they should be able to identify each item clearly by how it is described/laid out on the invoice.
Three crucial pieces of information to include on your invoice are the total amount due, the due date, and the terms of payment.
This keeps everybody on the same page and makes sure everything is clear for both parties.
Normally, you will have a specific agreement with your client (the client will have to pay you within 30 days of receiving your invoice).
However, you can offer an early payment discount to induce a faster payment.
When possible, set a payment policy with short terms. Cash-strapped clients may find the discount appealing as they search for any savings they can find while they get their finances in order.
Accept more payment types
Contactless commerce is loud and proud in 2021. Make it easy for your customers to pay. Make accepting online payments a priority.
Gartner predicts that by 2024, 80% of ordering and replenishment will be touchless for most organizations. So best to jump on that bandwagon now!
Have Integrations such as Stripe available to accept payments. Combining it with a cloud-based software like Enterpryze, you have contactless payments covered, seamlessly updating records and giving you real-time reports to get an accurate picture of your finances.
Use a cloud-based software
You are not using dial-up internet to run your business.
And you shouldn’t be using Excel sheets or dockets for billing. Leaving room for human error slows you down.
Cloud-based software helps accurately track your receivables and keep an eye on your invoices sent and payment statuses.
Enterpryze helps you simplify running your business. Get your invoices paid faster, keep track of everything, and operate effectively with Enterpryze.
And there you have it.
Enterpryze was specially designed for businesses just like yours.
This allows you to not only speed up your invoicing process but also allows us to do the hard work so you don’t have to. Spend this new free time on your business where it matters.
To book a demo or learn more about Enterpryze, speak to one of Enterpryze Experts and arrange a quick 30-minute chat.