Are you leaving money on the table? Invoicing is a valuable tool for a small business. This records the sale, reminds the customer of the order, asks for a timely payment and generates income for you! A successful invoicing process ensures all sales are recorded and paid. When a sale is missed, you will have left money on the table, not in your bank account. The quicker you get the money in your pocket, the more you can do with your business.
When do you invoice your customers?
Your invoice is a valuable tool, both from a financial and marketing perspective. Depending on the type of business or product, many solopreneurs may tackle invoicing once a week or once a month. Regardless of when you invoice, this needs to be a standard process on a regular schedule. The delay in invoicing your customers may cost you to wait for the money. Some invoicing may fall through the cracks. Customers may forget they had placed an order with you. Some customers may even change their minds. Heaven forbids the invoice is incorrect.
Are you overwhelmed? Too many things on your plate? Sales are the most important aspect of your business. This brings in money. Your customers will become your lifeline with potential repeated business. This can lead to referrals. Use your invoice as the valuable tool that it is meant to be.
Tips for creating invoicing process
Here are some tips for creating a smoother and better-invoicing process. Please notes these tips vary depending on the type of product or service. An interior designer will send out an invoice immediately after the clients agreed to the design concept and sign the contract. A business coach may enter delayed charges of time spent with client to be billed at the end of the month.
- Write up the invoice while working with the customer.
- Maintain a daily log of all your sales with all pertinent information. Create a standard template or a checklist of items needed to complete an invoice at the time of the sales. Designate a time of day or person to enter the data into your bookkeeping system.
- As recommended by Hiscox, “instead of recording a bunch of transactions at once, enter them as they occur, or cut out time at the end of every day. This will help improve accuracy and prevent anything from falling through the cracks.”
- Create delay charges in QuickBooks for month-end invoicing. Record on a timely basis during the month the delay charges so you don’t miss any. This tip is good for services performed.
- Use a solid bookkeeping system with your products and services already entered. The pricing and inventory will auto-populate. All you need to do is enter client information. QuickBooks Online is a good system.
- Hire a Virtual Assistant to help you enter the data into your system. A standardized spreadsheet will be easy for you to enter the data. Your Virtual Assistant can then enter the sale into your bookkeeping system.
Good Habits
Once you get into a good habit of invoicing on a consistent basis, creating invoices and collecting money will be easier. This will be one less headache to worry about. Remember invoicing is a valuable tool for your business. Besides the financial benefits, the invoice is a good marketing tool. It shows your branding, asks for feedback, and highlights sales.
Contact Monmouth Virtual Solutions for your invoicing needs. No more leaving money on the table. Let us help you record ALL sales and send out the invoices.
