Invoice organization is a necessary yet time-consuming process for small business owners. It involves several steps, from generating and emailing invoices to its accounting. And any mistake can cost you time and money. If you mess up your invoices, we are here to help you. This article will shed light on how to organize paperwork and reduce the risk of overdue payments.
Why get your invoices in order?
The seller must issue an invoice whenever a customer orders a service or product. This document officially confirms the transaction, its date, and payment terms. Invoices are also necessary for accounting. What are the problems caused by disorderly invoices? Foremost of all, it is an increasing number of errors. Without a unified database, invoices are easy to lose, forget, or mix up. The more invoices there are, the harder it is to detect and correct an error. Checking every line appears time-consuming and exhausting.
The risk of overdue payments also goes along with disorganized invoices. Without timely fees, businesses can’t grow steadily. In 2021, QuickBooks research showed that late customer payments made 89% of entrepreneurs put off long-term growth goals. Lack of investment leads to business stagnation as well. Overdue invoices hurt ongoing financial operations and disrupt the supply chain.
Ways to handle invoices more efficiently
Organize your paperwork to keep business running and stay on good terms with suppliers and customers. Here are some practical ways to take control of your invoices.
Set a clear payment due
Make sure you set a clear payment deadline. The charging information should be easy to read. Place it in a noticeable font at the beginning of the invoice. To avoid confusion, write down a fixed payment term. Not the number of days left to pay.
Reduce the risk of payment delays
Make sure the customer sticks to invoice obligation. Explain the payment terms during the order confirmation. Schedule your invoice and ensure it is delivered on time. If you send out email invoices, check if they end up in spam. Create a comfortable payment environment. Spell out the charging information clearly and correctly. Attach an instant payment form to the invoice if possible. In case a customer misses the payment, send a follow-up notice.
Give up paper invoices
Paper invoicing is the most complicated and time-consuming. And the risk of mistakes increases many times over. In addition, paper copies are difficult to record. Manual entry increases the risk of mistakes and overdue payments. Instead of fiddling with paper, switch to digital invoices. It will save you a lot of effort and time. If the budget allows, try an electronic invoice system. Beware: these systems are pretty costly, so they can burden small business owners.
Keep your invoices in one format
It is hard to handle invoices in different formats. They require extra software to process and display. Some forms may not be supported on the customer’s device. It also complicates invoice data extraction. We recommend storing invoices in a single format to simplify their generation, distribution, and storage.
Account invoices into a database
Keep a record of all invoices to ease the retrieval process. It is also convenient for tracking accounts receivable. A single invoice database will help you recognize overdue payments. The collected data is also helpful for reports and audits.
Start using invoice tracking tools
Invoice Maker by Saldo apps is a multitasking tool that generates, monitors, and records invoices. Automated tools also save you a lot of time. Just create an invoice with a ready-made template, attach a payment form and send it to the recipient. Once you send an invoice, it automatically appears in the unified database. From now on, you will always know whether your invoice is seen, paid, or overdue. Moreover, invoice trackers analyze the profit and generate financial reports.
Don’t let the paperwork distract you from your achievements. Get the workflow up to reach new business goals. Hold on to our checklist and see how organized your invoices can be.