Everyone knows that cashflow is the lifeblood of all businesses. There always needs to be a consistent stream of revenue coming in so bills, payroll and other operating expenses can be paid without any issues.
From research of over 12 million invoices, Xero found that on average debtors tend to pay two weeks late – not great news for any small business!
Fortunately for you, this Xero invoicing research uncovered a number of best practices that could encourage your clients to pay more promptly:
- Create and send invoices as soon as a job is finished – using the JacRox Xero accounting software this can be done not just from a computer but a smart phone too, making your life easier!
- Make your invoices clear so your customers know what exactly they are being invoiced for, and include your company branding to give them the professional look.
- Keep a detailed record of the expenses your customer incurs throughout a project. This will ensure that you are not going over budget and that the customer won’t be shocked by the number on your final invoice.
- Set out your payment expectations before you start the work. It will prevent confusion later on ensuring you don’t do any work the client doesn’t want to pay for.
- Keep detailed records of who is late on payment and get in the habit of regularly following up – the great news is the Xero accounting software does this automatically so you can spend less than an hour or so each week sending reminder emails/notifications or making quick phone calls.
If you would like to know more about Xero invoicing call the Manchester Xero accounting team on 0800 020 9542 and find out how we can assist you to get the your invoicing in order!