Get more out of your invoicing
Kevin Schimmel
Helping professional services firms automate their back-office processes to eliminate manual work
To help grow your professional services firm successfully and improve cash flow, you have to set up a reliable, fast and modern invoicing system that prevents problems such as chasing delayed payments, inaccuracies, manual creation/editing, and long processing times. Technology can help prevent these issues, making invoicing a non-issue. Here are tips on how to do this.
Use a cloud-based invoicing software
You want a cloud-based invoicing software solution that offers a full range of features that have configurable aspects to them. Simplify your invoicing by using software with capabilities that automate the process, generate and approve invoices quickly and accurately, make customizing invoices a breeze, and even send automatic reminders for overdue payments. You should offer customers the ability to pay via a corporate credit card or ACH and also set up automatic payments in case your clients want that option. Additionally, the software should organize and manage invoices in one central location, reducing the likelihood of lost or misplaced invoices.
Establish clear payment terms
It's essential to establish clear payment terms with clients before starting work. This includes outlining the payment schedule, payment methods, and any late payment fees. Also, confirm the invoicing requirements of the clients - how much customization do they require? Find out and document it. By establishing these terms upfront, you can avoid misunderstandings and ensure timely payment.
Invoice promptly
Invoice promptly based on your client agreements whether it be recurring, time and material, and/or project/milestone. This is crucial for cash flow. If you delay invoicing or are inconsistent about when they are sent then it makes your operations seem unprofessional and affects how clients perceive your business. Delayed invoices with insufficient content cause confusion and make it difficult for you and your clients to track payments. It's best to invoice as soon as you can according to your contracts - it is best for your cash flow, their cash flow, budgeting, accounting, and taxes.
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Invoices must reveal the value of what you’re providing through clear descriptions of services
Your invoices must provide detailed descriptions of the services provided. This helps clients understand what they are being charged for and reduces questions, disputes, and delayed payments. As importantly, detailed descriptions build trust with clients and establish your firm's expertise and professionalism to bolster your reputation.
Make it simple for clients to pay you
It seems obvious - always include payment instructions on invoices. Provide details on payment methods, such as bank transfer or credit card payment, and any specific instructions for making payment. Include a payment due date to avoid confusion and ensure timely payment. Making the payment process easy for clients reflects well because you’re making it less of a hassle. You can even consider offering them ACH or Credit Card autopay - if your invoices are clear with the information they need, then B2B autopay is increasingly a welcome option for clients.
Make it easy on your staff to see and track overdue invoices
Follow up promptly on overdue invoices. This can involve setting automatic reminders or even calling the client to discuss the outstanding invoices. By following up, you can demonstrate that you take payment seriously and that you are committed to maintaining a positive relationship with the client. Give your staff has an easy way to see and track all overdue invoices - a cloud-based solution will do that.
TLDR
Improving your invoicing operations has so many upsides such as better cash flow, time savings, reduced frustrations, demonstrating professionalism, building trust with clients, and helping your own staff. It is crucial to professional services firms. To get it right, start streamlining it with a cloud-based invoicing software, establish clear payment terms, invoice promptly, provide clear descriptions of services, make it easy for clients to pay you, and easy for you to track. By doing so you’re taking strong measures to support the financial stability of your firm - after all, the one thing your clients are guaranteed to look at is your invoice, so make the most of it.
Empower Employees. Unlock Insights. Drive Growth.
1 年"the one thing your clients are guaranteed to look at is your invoice" - This bears repeating, underlining, high-lighting, and stars. A good and detailed invoice of services provided can do more to sell your services than anything else you sent to your customer. An invoice isn't just a bill, it's a *report*.