No-one likes to chase clients for payment, so here are our top 5 tips to help you get your invoices paid on time.
Nothing is more frustrating than unpaid invoices. Despite hard work, many companies still find themselves facing the problem of chasing late payments which is a drain on resources. This article is going to look at:
- How to improve your invoicing process
- What you might be doing to hold up the invoice payment process
- Top tips to help you get paid on time
Send invoices promptly
Invoicing for jobs is what pays the bills, but we’re seeing a large number of companies that hold back on invoicing until up to a week after the job’s been completed. Sending an invoice almost straight away is potentially the most ideal time to do so as the details of the job are still fresh in everyone’s minds and you can be sure that you don’t miss your client’s payment run.
It may be that it’s time to rethink your current invoicing procedure – whether that will consist of dedicating time each day to manage the invoices or creating a new spreadsheet to help keep you on track.
Alternatively, it could be that it’s time to invest in a new piece of management software to help streamline the process.
Send invoices electronically
With everything going digital in the modern business world, there’s no reason why you shouldn’t be sending your invoices electronically as well. Not only does this save money, but it’s a much more efficient way of doing things and can also prevent any delays should your client require another copy or have any queries.
Make sure your invoices are accurate
A common delay seen in the invoicing process is waiting for managerial authorisation. Ensuring you have the right invoice amount and the correct PO number will help to minimise the amount of disruption involved in the invoicing process and prevent an invoice being declared invalid.
Management software can also help to reduce the risk of human error and improve the accuracy of the invoices you’re producing to ensure they’re paid quickly.
Agree payment terms in advance
Almost every company is going to have their own payment terms and so it’s vital that you understand what they are before engaging in contracted business. Knowing that a particular client will pay 90 days after receiving the invoice helps you to better manage your cashflow.
Should you find yourself caught short, you may be able to find some workaround by borrowing funds from an invoice discounting facilities. You might even find that by offering a 5% discount, you’re paid quicker.
Eliminate the potential for disputes
Invoicing disputes are nothing but hassle and only delay you receiving the payment. There can be a number of causes for this and one of the most common is a disagreement over the amount of work time that’s been accredited to the job.
This is easily avoided with a computerised system that can accurately record the job details in real time and therefore provide accurate information when it comes to invoicing.
It’s definitely worth spending the time to look for a job management software that helps you to streamline processes, get rid of paperwork and increase efficiency. One that gives you back control of every job every step of the way and allows you to raise an invoice at a click of a button when a job is finished. The sooner you raise an invoice, the sooner you get paid and less chance of dispute.
Author: I believe business can be a force for good, but all too often work ends up being painful as companies are overloaded with admin, paperwork and masses of emails.
My mission is to improve the working lives of construction companies, giving them complete control of every job every step of the way and have some fun!