One of the causes of poor cashflow is the mishandling of invoices that bring in capital to help cover corporate expenses. When you understand that not properly preparing and sending your invoices to customers can impede the flow of money into your coffers you know that you must make every effort to send detailed invoices that help your clients to pay promptly. Let’s take a look at some tips that will help you to receive payment for your invoices faster and with more accuracy.
The first tip to follow is to prepare your invoices accurately so that your customers will understand what is expected and when payment must be made. Your invoice should have a summary of all charges and fees, the date that payment is due, the payment methods that you accept, and the details of any discounts or promotions to which the client is entitled. The invoice should also include outstanding payment information, any delivery charges or other fees incurred, and your contact information if they have questions.
Make sure that you handle all queries concerning your invoices quickly and efficiently so that payment can be made straightaway; you may want to emphasise any discounts for prompt payment that you are offering or other incentives for their making rapid payment on their account.
If you find that a client is having trouble paying their invoices, you should check to see that you have the proper address for your billing department. It’s a good idea to phone the client so that you can affirm that they did receive their invoice and what problems they are having making payment. After you are sure that all information is correct you can work with the client to help them make payments in a more timely fashion by offering them a change in their billing cycle to coincide with the cashflow at their company. If their slow payment is causing a cashflow problem in your company you can visit ultimatefinance.co.uk to learn about financial solutions that can carry you through shortfalls until you get better control of your billing cycle.
Finally, it’s imperative that as soon as the work has been done for your customers or the goods and services have been delivered – you send invoices to the clients. This puts your bill in their paying rotation and can get the money due to you in your corporate account faster. Another problem with your cashflow can arise if you delay billing with a number of your clients; this will impact the amount of working capital you have and can cause a shortfall when it’s time to honour your obligations.
Managing your invoice system is one step you can take to be confident that you will not experience a cashflow problem or a shortfall when your own payments are due. If you give your full attention to this aspect of your business operations, your company should thrive in the most difficult of economies.
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