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Getting paid for your work can be one of the most rewarding experiences in your life. Managing your payments can be a tough job on its own but with time you’ll be able to handle it. A lot of business owners struggle with invoices and in turn plague their businesses with lack of cash flow.
Billing clients requires a little bit of finesse.
That’s why in this article, we’ll hand you some of the best practices to navigate the challenges that arise from invoicing and getting paid.
Create a contract
It goes without saying but I’m surprised at the sheer number of business owners that dive into a project without a written or worse, verbal contract. By creating a contract that details your service offering, rate and invoice due date, you’re providing a proper foundation for your projects to stand on.
You don’t want to create a contract by yourself though.
Your client should be aware of every piece of information on it so appropriate adjustments they’re comfortable with can be made. Once your contract is established, you’ll use it to create your invoice and bill the right amount.
Create an invoice template
If you’re dealing with multiple clients, you’ll need to shorten your invoicing time and create the right invoice for a specific client. This is where an invoice template comes in. With it, you can save a bunch of time and duplicate the original invoice.
You can do this manually with a desktop software. Or you can use an automated billing system, like ours.
Make sure the invoice contains information like address, billing contact, client’s name and other payment terms. A well organized invoice process makes it easy for you to manage and track your payments. This way, you ensure cash flows into your business.
Make the payment process easy
If you want fast payment, then you’ll have to provide simple options for your client. Offering multiple payment options increases your chances of getting paid on time. Generally, you want to provide the opportunity to accept PayPal, stripe, credit and even debit cards. This way you ensure all methods are covered
Also, you can add a check payment option.
Send out invoices on time
It’s very simple, send an invoice early, get paid early.If you delay, you risk the client forgetting about your owed payment. Each client you have will most likely have a unique payment schedule. And it’s important to create invoices for their payment cycle. Add every information needed into the invoice. From due date to amount, all the way down to late fees or interests.
The goal is to create a strategy that allows you to send out an invoice on time so you have a steady cash flow to grow your business.
Be confident in your follow ups
The busy highways of business can hinder a client from responding to your invoice. Sometimes it’s an emergency. Whatever the case, it’s important to reach out with a follow-up email or call. Following up is an effective way to get paid on time. In addition, using automated tools will improve the entire process for you.
Your communication, delivery and overall invoicing process play a huge role on how you’re perceived by a client. The aim is to appear professional so your client treats you with respect and responds to your requests on time. The practices highlighted in this article will help you come across better to your client