Taking care of invoice and billing payments can often be an onerous task for many small businesses. However, very few things are more important in the business industry than getting paid on time, since delays in payments can disrupt a business’s cash flow quite seriously.
Business owners looking for best practice tips to get paid on time should keep in mind that often the most effective solutions are usually the most simple. Owners should make sure that their invoices are accurate, easy to read and include information such as:
- how to pay the invoice
- a clear description of goods or services provided
- the details of any discounts and how they were determined
- information about any outstanding payments
- delivery charges if applicable
If any queries should arise about the invoice or payment, owners should handle them fairly and quickly.
Making only a few simple adjustments to invoices can speed payment from customers so owners can focus more of their time on their business than on their bills. Some techniques to speed up payments include:
- Confirming the correct location and contact details so the invoices reach the right person.
- Clearly stating on your invoice that you reserve the right to charge a set late fee for overdue invoices.
- Contacting customers to tell them what corrections or adjustments are being made to their invoice before sending the amended invoice.
- Quoting any relevant customer reference number customers have provided.
- Including a credit card or online payment option.