4 Tips for Easier Small Business Billing. *Math* Yea!
Let’s get PAID! One common challenge for small business owners is cash flow. Bills come in, invoices go out – and sometimes the dance of payments with the income receipts gets out of step. Accounting may not be your favorite activity? Count me firmly in that camp! But even I am willing to do math if there’s cash involved.
You may not be big enough yet (or have other priorities right now) to pay someone to do the bookkeeping. If that’s the case, here are 4 tips and 4 software choices that may keep your invoices going out and your cash coming in.
PayPal If you are using PayPal for credit card processing, their simple invoice system may be all you need. This is a fit if you are doing less than 10 invoices per month or so and have established the good habit of weekly billing to stay on top of things. Many coaches and consultants find regularly using Monday mornings for admin tasks in their business gets invoicing done along with bill pay, marketing efforts, etc.
Tip: Customize your invoice with your logo, tag line etc. Your invoice can also state your cancellation / refund policy and offer partial payments if you have granted a payment plan.
Bill.com I used this service when we expanded Small Business Festival to multiple cities. So many additional vendors meant finding an easy, automated solution for people to submit their invoices and expenses via this simple portal. It allows for your CPA or bookkeeper to keep an eye on things, as well as other team members. Very good service if multiple folks need access to review and support your billing.
Tip: Standardize a calendar review of your account. Every other Friday – 1st and 15th – whatever works for your team. This allows for catching early any uncompleted bookkeeping tasks, missing or overdue invoices.
17 Hats Designed initially to support the solo-photographer industry, 17 Hats brings multiple services under this one umbrella. Named for how it feels to be self-employed (I wear 17 hats!) freelancers of all kinds love this software service. It offers reminders for unpaid invoices (nice!) and can build a contact list. Your individual projects are managed in a workflow style that is great for event or project-based businesses. We successfully used this service for a TEDX conference.
Tip: Be prepared to invest a little time in thinking through your workflow for projects and your operations. The task list, calendar and embedded contacts can be a lifesaver if you develop the practice of setting up your projects completely before you begin each one.
QuickBooks The 800-pound gorilla of small business bookkeeping, QuickBooks offers both a desktop version (you download it to your hard drive) or a cloud solution for online access. Accountants and bookkeepers find this to be the industry standard for small businesses. I have found it a little wonky for me – and since I don’t process a big number of bills, invoices etc. so it is more robust than I need. If you do have some volume in your bookkeeping tasks – this service has the added benefit of giving you a head start on your tax filings.
Tip: If you are new to QuickBooks, you might want to invest in a 1-2 hour tutorial from a certified expert. If your company is going to scale, this may be the best choice. Getting the books built right will save you headaches later!
QuickBooks Self Employed Like I said, QuickBooks is the 800-pound gorilla, but that’s if you’re using the version meant for larger companies. However, if you are a coach, consultant, or freelancer with a business set up as a sole proprietorship, then this may be the version you want. It lets you send and track simple invoices. And it prompts you to record expenses into categories that match the IRS Form Schedule C, “Profit or Loss from Business (Sole Proprietorship).” Fortunately, QB designed the interface of this version to be easier to use for those of us who don’t have a lot of experience in accounting.
Tip: In the reports feature, you can download a P&L Statement, as well as pre-formatted tax spreadsheets that make tax filing time slightly less painful. If you use a tax accountant to file your taxes, you’ll be able to send the information he or she needs while looking like the true professional you are!
Bonus Tip: Join Us! Small business money management is one topic we facilitate during our virtual Business Builder Bootcamp. Whether you are growing your business or starting one – we’re ready to support you in your entrepreneurial journey. Visit us and register for our upcoming program!