If you manage the finances for an agency, you may notice that there is room for improvement in the...
When a business has an organized invoice management system, it means they have a streamlined process for handling payments from customers and clients. This can include ensuring timely payments, organized record-keeping, and keeping receipts for each customer. Having this system in place will improve your business performance and optimize cash flow.
Five tips for managing invoices successfully
1. Implement the right invoice types for each customer
Depending on your business model and the services you offer, you may have clients or customers who engage in predictable ways. Maybe you have a lot of one-off client interactions, or maybe you have more of a subscription model, a recurring fee, or a multi-installment payment need. Assess these options, understand what fits your business and be sure to develop a system for each structure. Then, apply the right invoicing protocol to the right customers. Having accurate structures in place will help you avoid errors, confusion, and missed payments.
With Modern Receivable’s invoice follow-ups, you have the option to customize email and SMS cadences for different types of customers. You can choose the format, frequency and messaging that makes sense for each customer type to ensure you get the desired results.
2. Set invoicing payment terms and conditionsMake sure it is clear to customers when payments are due, how they can pay, and any penalties they will face for late payments. This can come in the form of invoice payment terms which serve as an agreement between the business and the customer. Having these boundaries and guidelines will help you avoid missing out on payments, which can negatively impact your cash flow needs.
3. Offer payment options that make it easy for the customer
If you find that you are always chasing payments, make sure you are offering payment options that your customers actually use. This means expanding beyond just checks or cash to ensure you have online payment platforms like Square, Stripe, PayPal, or any system that fits your needs. Meet your customers where they are with their payment habits, and you will see less friction in the invoicing process.
4. Use invoice management software to keep everything organized and accurateManually tracking payments is a method of the past. Your business needs to be using invoice management software to avoid human error and wasted time. These programs will make it simple to streamline your invoices and connect them to the rest of your financials so that all of your accounting and bookkeeping can happen in one place.
5. Automate invoice follow-upsWhen you choose software, get one that automatically manages the entire invoicing and communications process for you. This will allow you to focus on the bigger business decisions while having the confidence that your payment systems are happening accurately in the background. To get started with automating your invoicing, try Modern Receivable. We make the process smooth and effortless, so you don’t have to stress about follow-up communications or your cash flow. Eliminate manual tracking and invoicing today. Learn more.
