As a small business owner, you probably love what you do, and you may even say that you could do it for free if you could. But, at the end of the day, you need cash flow to keep your business going. Today we will share with you how you can save money by using Automated Invoicing Software.
The shipping invoice is sent to the customer for the goods or services you provided. It describes what was sold, how much the customer owes, and when and how the buyer should pay. Large companies have separate accounts for invoicing, but most small business owners have to do it themselves. And according to a survey of 1,000 American small businesses, the average small business waits for more than $5,000 in past-due payments in any given month.
According to another survey, employees around the world spend about one-third of their annual work time on administrative tasks. It is also found that “busy-ness” quickly adds up to significant lost income. In fact, the survey concluded that $534 billion is lost annually to “idle time” worldwide.
Automate the process
If you have not already, set up invoice automation software. Most accounting platforms include options for invoicing, or you can sign up for an invoice-only service.
It’s time to move from Excel and PDF to cloud invoicing applications. Using software like Invoice Crowd will save you time and money if you choose to do so.
According to a survey of more than 200 small businesses, about 70% of small businesses use billing software. Using billing software reduces errors and saves money. According to one report, businesses that automate their billing processes reduce invoicing costs by 40% to 70%. Automation also makes invoicing easier and frees up time for business owners to focus on running the business.
You can spend your precious time doing something that fulfills you instead of manually entering data.
Send written quotes
If possible, manage your customers’ expectations by giving them a written price quote before you deliver the product or service you are offering them. The quote should include the estimated cost of the job and the method of payment, whether cash, credit card, check or online. Make sure the customer accepts the terms in writing before accepting the job.
Set short payment terms
When you send the customer an invoice, specify a time frame for payment. The default is usually 30 days or less, but you can choose any length of time.
The average debtor pays two weeks late, based on the analysis of more than 12 million invoices. Experts recommend setting payment terms of 13 days or less if you realistically want to pay within 30 days. Online invoicing allows customers to pay faster.
Create a numbering system
Numbering bills helps you keep track of incoming tax payments. You can use letters, numbers, or a combination of two characters to identify each invoice. Choose the system that works best for you. However, invoicing experts recommend not using “001” for your first invoice. If you start with more, your clients may perceive you as an established professional, even if you are a new business. Start with 0054 to look a little more professional. Give yourself importance. This may increase the price of the service you offer.
Use decent language
While it may seem simple, using “Please pay (date)” and “Thank you for your business” on invoices increases your chances of getting paid. You can also send thank-you notes or emails to customers who pay on time or early.
Remind your customer of other products and services you offer and that you would be happy to serve them again. Good invoicing means selling, selling, selling.
Send invoices now
When you have completed the service or delivered the goods to the customer, send the invoice immediately. This way you keep track of the customer and set a precedent for promptness. If possible, allow users to pay on the spot via a mobile payment system such as Apple Pay or Square.
If you do not get paid right away, send your customers reminders about payment deadlines. It is practical to send reminders a week before payment is due, on the day you need payment, and every week after the delay. For larger amounts, such as a $5,000 order, you can send more frequent reminders.
The digitization of services through the use of Internet banking and mobile banking makes financial services one of the sectors that has developed the most in recent years. However, there are many manual tasks that lead to inaccuracies, inefficiencies and long waiting times. Therefore, there are several important reasons for introducing business process automation.
A springboard for digital transformation
For companies not on this path, digital transformation might seem like an unattainable goal. Business process automation can also be a cornerstone for establishing a culture of continuous transformation. You could start with a few processes that obviously need a change of direction and work on them one by one, on the way up.
More clearly defined goals
Automation requires a certain level of clarity about the process, even at the design stage. If you do not know what people you need to execute processes or what tasks are associated with those processes, you will not be able to effectively design and automate the workflow. In addition, process mapping can provide clarity to all employees and serve as a training resource. The insights you gain from automated process analysis can clearly show you the gap between what your process looks like and what it ideally should be.
One of the positive outcomes of process automation systems is simplified processes. Clear hierarchical responsibilities, valuable insights, and faster execution times make it easy to eliminate time-wasting activities and focus on improving tasks that add value to your business.
Business process automation records all the details of a particular process. This information is therefore easier to review to demonstrate compliance during audits.
Standardization of processes
When you automate a business process, you can expect the same result of a particular process every time. Standardization helps your business present itself as reliable, which in turn can help increase its customer base.
Increased customer satisfaction
Customer satisfaction is what sets a business apart in any industry. When you focus on excellent processes and procedures, you can easily exceed your customers’ expectations. If you consistently deliver on the standards you promise, customers are more likely to develop a liking for your business.
As a business owner, you need to do everything you can to ensure the financial stability of your business. Automated invoicing software can help you do just that. And save some money too.
Invoice Crowd might help you with all of these steps. And it’s just a click away.