- Use the automated invoicing software
Start using the softwares that automatically do the work of invoicing for you. Some of the available platforms that give you this capability are Scopidea, Quick Books, Wave Accounting and various others. Change is the law of nature, adopting new facilities/technology as they come into market shows your movement with the pace of time. Thus, it’s time to leave pdf’s, excel and to adopt cloud invoicing. This not only saves your time but also space with money. According to a survey conducted in 2015 by Concur, a Bellevue, Washington, company that provides automated invoicing services and expense-management products to companies, around 70% out of more than 200 small industries uses the invoicing software. One of the big advantages of using the invoicing software is that it prevents you from committing the mistakes. The 2012 report by Ardent Partners, a Boston firm that researches supply management says that the companies have reduced their invoicing costs from 40% to 70% by adopting automatic billing system. The saved time is used by companies in increasing their profit by focusing on their running business.
- Ask them to use Written Quotes
Before offering service to your customer, ask them to go through the written price quotes. What to present in writing quotes. A written quote must present them an estimated cost of the products/services, in what way will you accept price: with cash, online, draft, check or in other forms. Make it clear in written that he accepts your terms and conditions before he uses your services.
- Use short payment intervals
Mention clearly the time frame of payment while invoicing your customer. The standard time interval is 30 days, but you can choose it as per your comfort.Amy Vetter, Xero’s head of accounting, USA, says that online invoicing pays faster and easier. People like online payment system instead of check payment or cash payment, Vetter tells Nerd Wallet. To set those kinds of (short) payment terms with customers is much easier and acceptable.
- Implement a habit of invoicing with the ID
Invoicing with the customer ID will help you in maintaining the record which may be used later during the tax payments. The customer ID can be alphanumeric or simply consists of numbers or letters in capital or in small form. Number the first invoice with the ID that shows you are well established even if you are new to the business. The invoice experts do not prefer to use 001 to number the starting(first) invoice, as it can indicate that you are new in the field and can affect your business.
- Use the language that has an effect on their mind
Such as you can thank to the customers who pay the payments on time through an email or by a thank note. This will have a good impression on their mind. The use of phrases like Please pay by (date) and Thank you for believing in us will enhance your payment chances for your services and products. Send the invoice with no delay as soon as you serve them. Doing so, the customer will keep you on the priority list for your payment.
- Remind them
If the customer doesn’t make his payment within 2-3 weeks. Send a reminder a week before about the deadline that their payment is due. And every week they delay. For this, you can set your invoicing software for sending the payment reminder notices at an interval.