Every entrepreneur wants to spend their precious time and business resources generating revenues and firming up their operations. No one wants to spend time or resources chasing after late and defaulted payments. Unfortunately, this is a reality all business people have to grapple with, and the more efficient your collections systems are, the better your cash flow as well as your profits.
Hiring an accounting services firm in Singapore is a big step towards having your invoices paid on time. But if you want to do it yourself, below are tips that’ll help you get your invoices paid faster.
Paper invoices take up space and can be misplaced easily. Also, in present times, environment change is a concern among companies and more are going digital. If you have a paper invoicing system right now, no matter the scale of your business, dump it and switch to an electronic invoicing system.
There are dozens of invoicing apps and software available that would match your business needs. However, you can save the trouble of staying up to date with the latest invoicing system yourself and consider engaging a reputable accounting firm services in Singapore to take care of your accounts.
Invoice immediately after delivery
Just as procrastinating a sales call would hurt your revenues, putting off invoicing until later will hurt your cash flow. Immediate invoicing gives the client a sense of urgency and they are likely to pay immediately. Although there’s no fixed rule about the ideal time to send an invoice, it doesn’t hurt to get rid of backlog and get paid sooner.
Be detailed but keep it simple (skip the jargon)
Every client wants to know exactly what an invoice contains. Also, clients want to know the consequences of a late or defaulted invoice. Provide your clients all that information in a simple way. Avoid confusing your clients with unnecessary jargon. Studies show that a simple and on-the-point message has more impact than lengthy fluffy messages. At the same time, maintain clarity and readability. The easier it is that your invoice can be understood by your client, the more likely you will get paid quicker.
It would be often appreciated if you send reminders about upcoming bill deadlines to your clients. You can do it a week or several days before payment is due. Decide what works best for your business and clientele. You can expect payment sooner and it will remind your client that they can also save money by avoiding a late fee.
Audit your invoicing and payment processes
Continuous improvement is not just a mantra for leadership training. It also applies in all your business processes. Review your invoicing and payments processes frequently. Maybe you can start billing clients more consistently by outlining a billing schedule so they know when to look out for an invoice from you. You can also seek professional help to audit your processes and how it can be improved. Consider engaging in audit firm services to analyse your business and work your way to healthy cash flow.