One of the benefits of switching accounting and financial business activity to the cloud for small to medium sized organisations is the opportunity it presents for streamlining so many operational and financial elements.
One of those elements is invoicing. This is one of the most important areas of a business. Getting this right and using the right software for invoicing can have an immediate and positive impact on your cashflow.
Ka-ching! Positive cashflow. We love that phrase.
We often speak to our clients about this. One of the simplest ways you can remedy a cashflow problem is to sort the invoicing process out. This is what we recommend you do:
1. Invoice faster
A simple administrative mistake many small business make is leaving the invoicing until the end of the week, or when they’re back in the office or worse – the end of the month! This does nothing for your cashflow. In fact, it will probably dry up super-fast if you manage your invoicing this way.
If your team are out on site doing jobs, give them the tools to invoice immediately onsite at the completion of a job. Applications such as Invoice2Go allows them to create a branded invoice right then and there. An invoice goes straight to the customer instead of getting delayed by ineffective administrative procedures.
2. Make it easy to pay you
Another key to increasing that cashflow from a drip to a torrent is to make it easy for your customers to pay you. Think about your customers. They’re probably super busy people who don’t have a lot of time for admin themselves.
Xero’s online invoicing software allows your customers to click on the payment link directly on the invoice they receive. They can then make direct payment using their credit card or PayPal. You’ve minimised the hoops customers have to jump through to pay you which means their cash turns into your cash a whole lot faster.
3. Track and Chase
Another headache for many business owners is chasing up outstanding payments that are due. The old ‘cheque is in the mail’ or ‘I’m sorry, we’ve been having email problems and I haven’t received your invoice’ excuses can come thick and fast. There is a way around it.
Use an app such as Debtor Daddy to track invoices for you and follow up outstanding invoices. Intuit QuickBooks invoicing software also make invoicing easy by keeping track of all your invoices in one place, so you know exactly which invoices have been paid and which ones haven’t.
We are so lucky. There are apps for days, platforms as far as the eye can see and software for invoicing that will take the administrative headache away from the accounts receivable side of your business.
And without a headache holding you back and a little more cash in the bank account, you get clarity and energy back to focus on your business success. For more tips on managing cashflow for your small business check out our post on 5 ways to improve cashflow or speak with on of our advisors today.
