As a business owner, managing invoices may be the last things on your mind. Your business is your baby. You want to be immersed in every aspect of the operations, but you can’t forget about the administrative tasks. You want to get paid, right? Your invoices should be always be on your mind.
4 Invoice Management Tasks You’re Doing Wrong
There are many things that business owners are doing wrong that are keeping them from getting paid on time. Are you making these 4 invoice management mistakes?
1. Not Giving Invoices Your Full Attention
If you are like most business owners, you loathe administrative tasks. The task of filing and sending out invoices may be the absolute last thing on your mind. You see this as a task, rather than a priority. This is a major problem. Your invoices deserve your full attention.
Using Invoice Factoring to get Paid Faster
To get paid faster, you have to take the time to properly manage your outgoing invoices to ensure nothing gets overlooked. If this is something that you cannot give, consider hiring an utilizing invoice factoring. An invoice factoring company will be able to give your invoices the attention they deserve. Working with you or your administrative team, they will be able to send out invoices faster, keep track of invoices out for payment, and properly collect on invoices that are past due.
2. Making Payment Difficult For Customers
Are you only accepting checks for payment? It’s about to be 2016 and checks are becoming a thing of the past. Not every customer likes to pay the same way. Offering a broader spectrum of payment options will help your invoices get paid faster.
Making it possible to pay in different ways is one thing—promoting it is another. Be sure that your payment options are clearly stated in your invoices. Use clear and concise language to ensure that every customer your work with can understand.
3. Not Following Up
We understand that as a business owner your business, but guess what, your customers are busy too. Just like you forget to follow up with them, they forget about their invoice with your business.
The longer you wait to follow up, the longer it will take to receive payment on your invoice. They day the invoice becomes overdue is the day you need to follow up. This will ensure the fastest possible payment.
4. Never Speaking Directly to Your Customers
Although it can be awkward and uncomfortable at times, it’s crucial that you speak directly with your customers when reminding your clients about their invoices. Sending and email or a letter can only do so much. A client is more likely to make the payment when you have reminded them personally. A letter in the mail is easily forgotten, but an in-person or phone conversation with your customer is memorable. This will put your payment back at the top of their to-do list.
How Invoice Factoring Can Help
If you’re sick of managing your invoices, there’s a solution. With invoice factoring, you can sell your invoices and get an advance of up to 96% of its total in just 24 hours or less. This eliminates the average 30-day wait time and takes the burden of collections off of your shoulders and on to the invoice factoring company’s. An invoice factoring company will purchase and collect payment on your invoices for a small fee. This allows you to get instant payment so you can get back to doing what you love the most—your work.