Developing a Fluid Invoice Process: A 4-Step Guide
An essential part of running your own business is knowing how to send, collect, and organise your invoices. Even though it may seem like a small aspect of your accounting process, making crucial mistakes in your invoicing process can be an issue.
Creating a fluid invoice process
Many up-and-coming business owners used to work as an employee. However, it can be challenging to wake up and understand that you’re now the owner of your own business. In making your invoices, you need to know that you’re no longer just a part of the company. Its survivability and growth now rely on you. Because of this, you need to make sure that you’re making good money by having an efficient invoicing process.
Here’s a four-step guide to make sure that you operate a seamless invoicing process.
1. Plan your invoice’s channels
Sending an invoice can seem like a simple process of requesting payment. However, as you get more clients and collect more service fees, you will become overwhelmed if you handle each one personally. You should craft an invoicing procedure, from dissemination until the receipt of your payment. Consider if you’ll have to set up a department to track and monitor pending and received transfers. Preparing your invoice systems ahead will pay off in the long run so that you can focus on other aspects of growing your business.
2. Present yourself as a person and not as a company
Sometimes, sending an invoice is better when you show yourself as a person and not as a company. Besides cutting through unnecessary processing lines, appearing in person, whether through voice call or in their office, can help speed things up. Meeting the accounts departments of your customers will make it easier to smooth out the payment process. Besides speeding up the process, you’re also opening yourself to greater networking opportunities.
3. Submit your invoices as soon you deliver the output
A recurring mistake that start-ups do is avoiding sending invoices for smaller jobs. Some of them tend to think of it as a pro bono discount, while others refuse to send their invoice because of submitting late deadlines. As a business owner, you should avoid performing either practice.
The best way to maintain your business’s growth is to be strict about your contract with your clients. Besides being punctual about the delivery of your output, you shouldn’t undersell yourself by thinking that there are big and small jobs.
4. Use the right tools to organise your invoices
Your invoicing doesn’t end with receiving the payment of your clients. Now, you must keep track of it and organise it for tax-related accounting. Your accounting running smoothly is one of the reasons why you should observe strict submissions and transfers for credit. You must always file your invoices accordingly so that you won’t run into any issues with paying for your quarterly taxes.
Thankfully, business owners can start using digital accounting tools to help them organise their company’s records, even without an in-house accounting team. You should take advantage of these tools to ensure seamless tracking of your business’s accounts.
Taking the challenge to be your own boss is far from being an easy achievement. Your path to success will be bumpy along the way. Nevertheless, with the use of efficient business models, such as invoicing systems, you can steadily develop your company’s growth in the right direction.
If you’re expanding your operations, you should hire the best accountants in Gold Coast at New Wave Accounting to handle your company’s bookkeeping. Our team of professional accountants can help you keep your business’s records in check. Get in touch with us today!