Invoice is a document that is used as proof of purchase containing the amount of payment to be paid by the buyer. In running a small or large business, you must still send an invoice every time there is a sales transaction. If you run a large business, chances are you will send dozens of invoices (invoices) to customers every day. But of all the invoices sent, how much were actually paid on time?
A study conducted by the Young Entrepreneurs Association related to payment rate efficiency, recently stated that only 63% of invoices were paid on time.
One of the biggest reasons for late payment comes from invoices with unclear instructions. To save companies from having trouble handling payment papers or being delayed due to unclear billing, here are some effective tips that can be done.
1. Easy To Understand
For starters, make sure you create invoices that are simple and easily understood by customers. Because not all customers are people who understand accounting, so it’s important to make bills that are easy to understand. You can include the name of the goods or services in a way that is easy for customers to understand by writing the full name of the product making it easier for customers to know what goods or services they ordered even if only at a glance.
Don’t forget to place your company logo in the right position to help customers identify your business. In addition, by personalizing invoices with business logos, this will make your company look more professional and increase opportunities for getting paid.
You can enter your company logo easily on every invoice you send. Not only that, Journal also provides sample invoices with 11 professional templates that you can choose according to the needs of your company, both services and trade.
2. Send To The Right Person
When sending an invoice , you must ensure that the person receiving the invoice is the right person, so they can process it immediately. Require accuracy or at least double check before sending an invoice to reduce the risk of this error.
There are some common mistakes, sending to the wrong person and sending to too many people. Sending an invoice to the wrong person will increase the likelihood that your bill will not be paid, while sending it to many people will make the recipient assume that someone else will take care of it, so that the possibility of an invoice being ignored will be even greater.
3. Give Early Payment Limits
If you include a 30 day payment limit on your invoice , there is always the possibility that the customer will pay it 2 weeks later than the specified limit.
If you feel the value of your bills is very important and greatly affects cash if you pay more than 30 days, then try to advance the payment threshold on the invoice . This is very fair when considering that your business has provided the best service for customers.
4. Send The Invoice ASAP
After completing all shipments of goods and completing business agreements, it helps you immediately send an invoice to your customers. Sending an invoice as soon as possible, will help encourage them to pay faster.
In addition, sending invoices faster will allow customers to remember the service you have done, thus encouraging them to make payments immediately. With Journal, you can also send invoices directly without having to download them first.
5. Offer a Flexible Payment Method
One reason why customers tend to delay invoice payment is because there is no easy payment access. Usually the customer must transfer or if the amount is very large, it must go to the nearest bank. Just imagine how difficult it would be if this happened considering there are still many other jobs to be done.
By offering many payment methods to customers, you can make their payments easier. In this way, they will feel happy and helped to do their business, because convenience and efficiency are everything in the business world.
You can make it easier for your customers to process invoice payments . Customers can choose the payment method via Virtual Account or Credit Card. By making payments through 2 methods, customers do not need to confirm to the company, because your company will automatically get a notification that the customer has made a payment. You also do not need to bother to record every invoice , because the Journal system will record the transaction automatically.
6. Give Incentives for Early Payment
If you notice that your customer is delaying payment until the last date, it might be time to start incentive’s payment early by offering a small discount for the invoice paid in advance as a reward. By rewarding your customers for their business, you will be able to encourage customer loyalty and make sure they pay their bills immediately.
7. Penalty for Late Payment
If giving an initial payment incentive is a gift to encourage immediate payment, then you can also give a penalty for late payment. By adding late fees to your invoice , you will emphasize an important element of the invoice.
8. Don’t Hesitate To Send Reminders
Some customers might forget about the invoice they were shown. Along with the many tasks and responsibilities, it is possible that the novice you have sent is due. If the due date has passed and there has been no payment, then it’s time to send a reminder such as a personal email, text, or phone call.
By sending this reminder, you help remind customers of invoices they haven’t paid, and show your seriousness in invoicing .
9. Use the Cloud System
Some business owners spend up to 10% of their work time creating invoices . If you think you spend a lot of time collecting clients and chasing payments, it might be time to start looking for accounting software that uses a cloud system .
You can take advantage of technological advances to facilitate the development of your business. Software Suggest is an online accounting software that helps you create and send invoices easily, quickly, and safely.