The Importance of Invoicing On Time
Your business just sold several products worth more than $500 in sales. The products are gone, and the customer is excited. Your next course of action is sending the invoice. An invoice provides detailed information about the sale, including product, pricing, and terms of sale. With many businesses requiring 30-day terms, you must send your invoice out quickly for a fast payment on the balance. Holding onto a sale without invoicing it can cause your business to enter the red.
Business is fast-paced for both buyers and sellers. Management may forget all about that high-priced product purchased a week ago. It is critical to invoice on time to avoid confusion. Sending the invoice within a week of the actual sale is common and helpful for the customer. The bill reminds them of the helpful product while urging them to pay the balance. If you send the bill several months after the sale, the customer may not remember the product. They may choose to withhold the payment until they can research the expense further.
Positive Cash Flow
Ideally, your business should have an equal amount of expenditures and sales with some profit to boost the bottom line. Late invoicing causes your income to drop significantly. Products may be out the door, but the payments have not been cashed. All businesses need a constant cash flow to pay for basic expenses, from payroll to electric bills. If a customer is not reminded of a required balance, they may spend their money on other items, leaving the late invoiced product in collections. Encourage fast payment with rapid invoicing each week.
Online Invoicing Programs
Online invoicing, such as products offered by MetaLab’s time-tracking invoice suite Ballpark helps your business manage time effectively to invoice on time each week. Sales generated through the software produce automatic invoices for email or physical mailing. Specialized timers tell supervisors where employee work productivity is being concentrated, from collection call information to actual invoice activity. Using software, like Ballpark, reduces the chances of a lost invoice and gets the payment in quickly.
With quality invoicing software, your bills appear professional with your brand or logo affixed to each page. On time invoicing encourages sales by placing the company’s name in front of customers. The invoice may remind the customer about another product they need, for example, and you receive payment and another sale in the process. Brand visibility increases your sales and promotes fast payment.
Giving Customers Time
A complicated sale, such as multiple products spread across a client’s various departments, may require time on the customer’s part to pay correctly. They may need to allocate funds from a variety of sources before a full payment can be sent in. On time invoicing gives the customer time within the 30-day term period to calculate payments on their end. Providing this courtesy as a vendor encourages more sales in the future, effectively building a strong working relationship.
Ask For Their Preference
Invoices are typically sent through emails today, but some customers may prefer mailed copies. Ask your customer about their billing preferences. Making the invoicing process as easy as possible encourages fast payments and possible future sales. Customers remember the personal touches and return to companies with human spirit.
Invoicing is a key administrative task for any business. Payments flowing in on a constant basis make your bottom line grow as your vendors trust and work with you more willingly. Business is about relationships. As a company works courteously with one customer, other clients see the quality service and tend to gravitate to the same company to receive the same treatment. Stay consistent with your invoicing to encourage lasting customer relationships.