Running your own business can come with an abundance of challenges, and admin tasks such as invoicing can often slip to the bottom of the priority list when things get busy.
Every company needs a robust invoicing process. Invoicing is crucial for not only keeping ahead of your tax return (which we covered here in a previous blog post) but also for maintaining a consistent cash flow and ensuring your business is growing as it should.
We have created this brief guide to ensure that your invoicing system is working optimally.
1/ Introduce automation to the process
Utilising technology can simplify the invoicing process. Delivery invoices using email instead of paper copies means that you will be able to easily keep track of the multiple invoices sent and received by clients. There is a variety of innovative invoice software available to log invoicing documents and send automated reminders.
If you prefer to keep paper copies of your invoices from clients, invoice scanners can also be used to ensure that vital information is stored safely and easy to access on personal devices or for simple editing.
2/ Create clear terms and conditions
Since invoices act as a contract of payment between your business and a client, making sure the terms and conditions are obvious is crucial. In corporate civil cases, most disputes are caused by unclear or misunderstood conditions linked to payment.
When considering the terms and conditions of an invoice, the most important factor should include the methods and issues related to payment. Offering clients the option to use cash, debit or credit cards, or online transactions can improve the speed at which they make the payment.
In these conditions, a section relating to late payment or missed payment fees should also be included as a reference in case the client is delayed in their transaction.
3/ Personalise your invoices
Personalising your invoices is a great way to build lasting relationships with each of your clients.
Creating customised invoices shows you care about your clients and the service you provide. Invoices can be personalised easily by including the director’s name, writing a personal message or mentioning any history between yourself and the company.
Creating a personal invoice also provides you with an opportunity to catch up with clients and check that they’re still satisfied with any ongoing or completed work.
4/ Get professional assistance
Maintaining invoices is a continuous task that cannot always be completed manually or without the support of an experienced accountant.
If your business requires a detailed review of its finances and assistance in maintaining a coherent invoicing process, we can help you!
One Two One Accounts is an accountancy firm with over 15 years of experience. We are experts in invoicing and provide a number of accountancy services to support subcontractors and SMEs based across the North East.