As a tenderfoot in the field of business, you might have too much on your plate. Right from hardcore marketing to alluring customers, hiring suitable employees to assuring quality of products, startups have to keep a track of everything related to the business process. With all this going on, startups generally find it difficult to focus on the bottom line of every business that is finance. They usually goof up with the money-making process. Steady cash flow is crucial to keep the business alive and this is feasible only by following proper invoicing process. As a new establishment, you cannot ignore the initial frustrations caused due to late payments by customers. Invoicing doesn’t seem to be an exciting subject for the novice but if learnt rightly, you can score well. The good news is, your startup can ensure smooth cash flow by embracing perfect invoicing process. There is no need to attain any accounting degree to excel in this subject.
Just follow the simple steps below:
Track all your expenses:
The initial step for invoicing is to track all your business expenses accurately. Remember every dime counts, thus do not overlook any expense and make a count of everything.
- Keep receipts of all expenses related to the project like office equipments, lunch, dinner, travelling expenses etc. so that you precisely include it in your invoice.
- You should also know when and how much VAT to charge the customers. Taxes are also important part of invoices.
- You can take help of any legal advisor or accountant to calculate the taxes.
Ensure the invoice includes all the necessary details:
The key to quick payment is to prepare a detailed invoice. Bill which contains all necessary information and is easy to understand is swiftly paid by customer. Don’t give any excuse to the clients for late payment.
- Unique invoice number, name of the company, invoice date, customer ID, name and quantity of goods and services provided, date of delivery, tax calculations, address, phone number, details of the clients, grand total are the mandatory fields to be integrated in any invoice.
- Your invoice should also comprise of email ID, bank account details and in case of international transactions, don’t forget to mention IBAN and SWIFT numbers.
- Clearly mention your payment terms for speedy payment. Kindly include the late payment charges, (if you charge any), last date of payment.
- You can also incorporate short description about the services provided by your startup.
- Discounts instantly catch attention of the customers; hence if your company is offering any discount, do not forget to include it in the bills.
Make billing easier with invoicing softwares:
Billing is one of the crucial, difficult and time-consuming activities, what if your business is gifted with automated process? Since startups are overloaded with responsibilities, this trouble-free technique will certainly lessen much of your burden. There are myriads of invoicing apps available, you can choose according to your preference. A detailed invoice can be created by the billing app. Most of the softwares offer affordable prices, thus it can be a favorable option for startups.
- Online billing software follows an automated process and makes accurate calculations.
- With the help of this online process, you can send invoices to your clients on the go.
- You can efficiently keep track of all your expenses, profit and loss.
- Online invoicing also ensures quick payment.
- You can save much of your time, effort and money with online billing.
- You can efficiently customize your bills and make it more creative as well as professional.
Make payment process easier for the customers:
Once you have understood how to prepare the invoices, look out for ways to make payment process easier for the customers.
- Though, clean and understandable invoices lead to quick payments, you can provide an extra layer of convenience to your customers by offering trusted payment modes.
- Apart from credit card and cheque options, offer secured payment options like Paypal, WePay, Braintree etc.
The best way to grow in business is by paying heed to the financial operations right from the initial days of your startup. Therefore to earn well learn invoicing well.