What are the best invoice payment terms for your business? When you’re just starting, it can be challenging to know what the terms are to get paid on time. If your invoicing terms are too far out or not clear, you are disrupting your business cash flow …
Here are a few tips on invoicing, payment terms and settling bills with your clients:
- Take control of your invoicing, whether you are a small one-man band business or have a bigger set up.
- If you lack resources and manpower for billing, do something about it; free up your or someone’s time, resort to easy-to-use billing software or outsource this function.
- Streamline your invoicing process; set monthly dates, pre-set recurring invoices.
- Make sure you keep detailed records of any stock sold to the clients or time used to service them such as meetings, phone call, online support, etc.
- Issue invoice as soon as possible, unless pre-agreed otherwise.
- Make sure the invoice is correct, billing details are correct, payment terms are clear and payment details are in place such as bank account details, IBAN, swift code, etc.
- Keep in touch with your debtors; be pro-active, send them reminders or statements when invoices get overdue, give them a quick call and be clear in your communication.
- Don’t assume new or existing clients know your policies.
The best way to manage accounts receivables is to prevent them in the first place by making sure to set payment terms in advance and that your customers are aware of what they are.
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