Proper, consistent invoicing is an important part of running a small business. Good invoice management encourages regular cash flow and helps ease accounting stress.
The goal of proper invoicing is to make paying as convenient as possible for your customers. To accomplish this, you’ll want a simple strategy for generating, sending, and managing your invoices.
Now that we know just how important invoicing is, let’s get into how you should manage your invoices properly.
Select the Right Type of Invoice for the Job
There is no one-size-fits-all invoice template as sometimes you’ll need different payment plans for different projects and clients. Before diving into the work, communicate with your customer about a payment schedule that works best for both of you and make sure that only one plan is established. Some payment options to consider include:
Similar to a financing plan, your customer can pay you in a series of recurring smaller payments, such as monthly instalments or as you complete various sprints in your project. This is an alternative to paying you in one lump sum. If you opt for interim invoices, make sure to send a final invoice at the end of the project detailing the work that’s been completed and what you’ve already been paid.
For ongoing projects for the same client, it makes sense to send recurring invoices at regular, agreed-upon intervals (i.e. weekly or monthly). Establishing a schedule with your customer means that you’re receiving a steady income. To make things easier, automate the process using an accounting software like Kashoo.
How to with Kashoo: Simply click “Show Options” on your Workspace and check the “Repeat” box to repeat any recurring income. You can customize it to “X” days, daily, weekly, monthly, or annually between a certain period so that you can forget having to manually send your invoices completely! How convenient is that?!
When a project closes, you want to send a final invoice to outline the work that you completed, alongside any interim invoices that have already been sent. Here, you want to clarify to your clients what exactly they are paying you for. Do this by detailing whether those interim invoices have been paid, and list the final amount that is outstanding, if applicable. A good invoicing etiquette is to send a final invoice to wrap up your business between you and a client—even if the job has been paid in full.
Manage Invoices In The Cloud
Using invoice templates for your business makes sure your invoices are consistent and you are not missing important information. These templates can be in simple document or spreadsheet format or can also be generated using financial or accounting tools. Its up-to you which way you prefer. But, if you’re still using paper invoices you might be creating a monster. Paper invoices are a headache to manage and are easy to lose track of. Want to reduce the headaches that invoicing gives you? Eliminate paper from the equation altogether and streamline your invoicing!
Managing your invoices with accounting software lets you focus on growing your business. Not to mention it helps make tracking your invoices a whole lot easier.
Have you ever sent out an invoice and then wonder, what happens now? More importantly, how do you know if a payment is on its way? Consider switching your invoicing to the cloud to reap the many benefits such as improved tracking and added convenience of having all your invoices in one place.
How to with Kashoo: With Kashoo, you can easily browse the status of every client account from your computer or mobile. Every invoice you’ve ever sent can be logged on your app, with information such as the invoice #, date, client name, status, and amount—giving you a wide view of your business’ income and expenses.
From there, you can send invoices from your computer or on-the-go on our Kashoo app from your iOS device. (available in the Appstore).
You can also view all of your unpaid Invoices all together—giving you a better understanding about how your business is doing and which clients you may need to communicate with.
Choose a Software That’s Customizable
Choose accounting software that lets you customize your invoicing options according to your brand. No design background? Just haven’t got the time? No problem. Kashoo makes it easy.
How to with Kashoo: Kashoo offers seven custom templates for you to choose from. You can also add in your logo and information to create branded invoices to send to your clients. From there, simply email your clients directly from the app—making payments that much quicker for your customers.
Up-to-date Invoicing: A Healthy Business!
Dealing with invoices might be among your least favourite tasks while running a business, but it doesn’t have to be! Use accounting software like Kashoo to help handle and manage your invoices and streamline your invoicing process—so you can get paid that much faster.
Want to speed up the payment process even further? Check out our article on setting up online payments with Kashoo!
The more convenient it is for customers to pay you, the quicker you will experience regular cash flow for your business. Try Kashoo for free today to see how we can streamline your invoicing so you can get back to what you really love!