Invoicing? Here’s Some Best Practices

JESSÉ SCHICEYA

THE RECENT UNFOLDING corruption case in the courts has revealed there are business people who don’t know what an invoice is, or how and when to issue it.

Well, here’s an explanation:

Invoicing is one of the most important parts of any business – big or small.

It is the way you communicate to your customers what services or products you have provided, and how much they need to pay for them.

Without a proper invoicing system, you could find yourself losing money as well as customers.

So, it is important to keep an eye on your invoices and the way they are made out so you can maintain a healthy cash flow for your business.

Here are some simple rules for the best invoicing practices you can follow:

• Use an invoice template

Using an invoice template is the best way to ensure that your invoices are professional and look the same. This will help your customers quickly see what they are being invoiced for and how much is due.

They would also have a place to fill in their name and address so the invoice doesn’t need to be sent back.

• Invoice immediately upon receiving payment

One of the most common mistakes made by small business people is forgetting to invoice their customers right away. If you don’t, there is a chance that customers will forget to pay you. Even worse, if they receive another invoice in the future reminding them of their account, it could confuse or annoy them.

• Only charge once per product or service

It’s important to be clear with your customers about how much they are being charged for each product or service. This means you should only charge them once for each item or service they purchased from you, and not multiple times. This will help to avoid any confusion on their part and will make it easier for both parties to keep track of expenses.

• Automate your invoicing process

There is no better practice than automating your invoicing process. Once you have the proper invoice template set up, there are many software solutions that can be used to send out invoices automatically on a schedule that works for both you and your client. This only takes minutes every day to do, but will help keep track of all accounts receivable, as well as save you time that can be better spent on running your business.

• Send follow-ups and overdue notices

If a customer doesn’t pay their invoice right away, it’s important to send them a follow-up notice to remind them they still need to pay. You can also set up automated notices to be sent if an invoice is due but hasn’t been paid yet. This will help you keep track of your payments, and ensure you get the money you’re owed.

Invoicing is an important part of any business, and following these simple practices will help make it easier for you and your customers to keep track of everything.

By using an invoice template, automating your invoicing process, and sending follow-ups and overdue notices, you can be sure that your invoices are always accurate and professional.

* Jessé Schiceya is the chief executive officer and founder of Cylon Accounting.

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