Performance Improvement

February 10, 2020

5 Invoice Management Tips

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Invoicing is a huge component in business processes for companies large and small. Making sure that invoice processes are optimized can be a huge advantage to your company’s cash flow. Here are some ways to help manage your company’s invoices more effectively:

Manage Invoices Electronically

One of the easiest ways to simplify your invoicing process is by moving to electronic processes. Not only will you be saving the environment by wasting less paper, but you will be saving time and money spent on mailing invoices. Paper invoicing is tricky because you are at the mercy of mailing agencies once the mail pieces leave your offices and again when you are waiting to receive payment. Electronic processes never leave that grey area when it comes to making sure invoices or payments have been received. Additionally, paper invoices cost more to process than electronic ones do!

Automate the Process

Speed and accuracy of invoices can make or break your business. When invoices aren’t sent on time, or with the right information, or even to the right person, this can cause costly delays in being paid for your goods and services. Automating this process can speed things up and prevent any delays that would have resulted from invoicing errors.

Accept Multiple Payment Types

Accepting a variety of payment types will help you fit the needs of many customers. Some smaller customers may still only have the capability, or just a preference, to pay via check. Other customers like a more streamlined process of paying via ACH or credit card. Having the flexibility to accept these payment types will help with customer retention.

Set Payment Terms in Advance

Payment terms shouldn’t be a surprise to your customers. They may typically pay in a different time frame than you expect so it is important to be on the same page as your customers. You should define your payment terms when selling your product or service so that you can be paid promptly without any pushback.

Monitor Efficiency

Why is efficiency in accounting important? You need to know that your invoices are being paid in a timely manner and that you are paying invoices in a timely matter. This will help you maintain a healthy cash flow in your business and build stronger client relationships with your organization. Monitoring efficiency can be done in several ways. You can manually keep track of due dates and late payments, or you can select an accounting solution that monitors and sends reminders on your behalf.

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