Managing your invoices is not just about storing them. The entire process that includes billing requires management. From the moment you prepare the document until you deliver it. However, you need support to carry out efficient management.
If you’re just starting out, you need to take action. Everything you invoice in the first month can take up to 90 days to collect if you don’t organize yourself well. A great risk that you must prevent.
The basic principle to keep in mind is that an invoice only ends its cycle when it is charged. Meanwhile you have to focus on attention and work, starting with the negotiation of the payment method.
If you want to control billing, you must apply some principles in your business. When we don’t create a process to manage a certain task or problem, our tendency is to improvise. And improvisation often involves waste of time and money.
In this post we will teach you some tips to take better control of billing and create the appropriate processes for the administration of your company to move forward.
The fundamental steps for you to manage invoices more efficiently are:
Negotiate the payment method
You must ensure that this is clear and signed. Both parties must be in agreement. You must agree on the payment method, the terms and the additional guarantees.
Your client may prefer to pay with more time. You will obtain the same result financing the invoices to anticipate the collection, and you do not have to force your clients.
Another option is to negotiate a penalty for each day of delay. The agreed form of payment indicates it in all the commercial documentation that you issue, estimates and invoices.
Never do a business without finalizing the payment method with the client. If you talk to your clients, make sure the agreements are clear on both sides to avoid misunderstandings.
Determine a day to do all your invoices
If you are a freelance professional who sells services, the best option is to make and send the invoices on a certain day. Or in a period of time. For example, between the 25th and 30th of each month.
In this way, you make sure that companies have the invoice before the date they usually pay. Generally at the beginning or end of the month.
Do not leave to do your invoices at the last minute. Always check the details well:
- Personal information
- Company data
Remember that with only one wrong detail, the invoice can be rejected and this leads to your payment not going out on the scheduled date.
Keep track of unpaid invoices
Sometimes we do not keep a collection control of the invoices that we have made. Such a situation often results in liquidity problems. Our clients have not paid in the corresponding period, nor did we have the adequate mechanisms to claim the payment and be able to dispose of the money on the correct date.
If you want to control billing, you must keep a record of all the bills that you have not collected. It would also be important that the invoices include the maximum payment date. For example one month. And from that date, default interest would be generated for not paying on time.
Keep your invoice record book update
Do you keep a record book of issued invoices? Do you have it update? It is possible that on some occasion you forget to invoice a work that you have done. And by not making the invoice, they do not send you the payment. On some occasions, due to the characteristics of the order or the moment you are in, it may be easier than it seems.
If you don’t want it to happen to you, the ideal is to also keep a record of the work you do. Bring an Excel document in which you clearly stipulate what jobs you have done, for whom, how much they cost and the date you sent the invoice.
Use a software for create your invoices
When you have an online billing program, you have the option of being able to create invoices quickly and easily. You just have to register your clients, with their data and yours, and then generate the invoices with the corresponding information. The invoice numbering is also generated automatically, so it is much easier to avoid errors in this regard.
If until now you have been invoicing manually, through an Excel, it is possible that this task of invoicing is very heavy for you. Check how to do it with our software: My T. You will see how you can save a lot of hours of work, especially if you are self-employed and manage your own accounting.
My T is an APP based on artificial intelligence, which allows you to organize your financial work. My T allows you to manage and generate your invoices easily and quickly. In addition, it helps you organize your payment dates … With it you will never have problems with your billing again.
Generating and optimizing the handling of your invoices is an everyday task. If you are the head of a company, an accountant or simply a freelancer, you must be up to date with your billing. If you don’t bill, your liquidity will be seriously affected.
Especially if you are self-employed and manage your own accounting, do not forget to mark a day on the calendar in which you will fill out the corresponding documents.
If you find it difficult to be organized with the issue of invoices, do not hesitate to try My T. Our APP can be the solution to all your problems. In the same way, we hope that these tips will be useful to you to control your billing, and that you always keep up with your finances.