Freelancers and small business owners often suffer from poor cash flow and look for improving it. However, what matters the most is that they still use redundant invoicing methods as they are wary of costs and disturbing their budgets. Luckily, with multiple free templates online, you can easily streamline your invoice and maximize cash flow with ease.
Leverage Automated Invoicing
Online invoicing software can help you compare cash flow projections and save time spent creating documents and looking for customer information. Besides, it can also help you eliminate manual mistakes when billing your clients. With multiple tools in the market, we would suggest going for a solution that offers time tracking, automated invoicing, estimate generation capabilities, and robust reporting tools.
Lay Down Payment Terms in Advance
Make sure to use the free invoice templates online and send out written estimates before you begin any work. This will help you gauge client expectations and avoid all issues down the line. Not only will this help you stay consistent with payments, but your customers will also be aware of their costs. In addition, online invoicing solutions can help you create estimates and then turn them into an invoice with a single click.
Don’t Forget To Number Your Invoice
If a client questions you about an invoice, you should be able to produce it quickly. For that, you will need to track your invoices for easy reference.
Set Simpler Payment Terms
Be very specific when you mention your payment terms. Phrases like “due upon receipt” can sound very vague. Usually, thirty days is a standard time. However, you can add your terms to suit your business needs and also change them for different clients.
Make Payments Simpler
While you make invoices using free invoice templates online, make sure you offer multiple payment options to clients. At the same time, some payment gateways charge a percentage of your transactions; others charge a flat monthly fee. This will primarily depend on the number of orders you receive per month and the nature of your business.
Some invoicing solutions also let you pay via credit cards, PayPal, or Stripe. Besides, they can also help you increase invoice costs to cover the processing fees.
Make sure to use clear language and avoid using jargon. Also, strictly avoid using hi-fi words. There are chances your clients might not understand them and form an opinion about you. Lastly, make your invoices easy to scan. This will ensure that your clients understand your terms and pay you faster.
Stay in Close Communication
Good customer service on invoices goes a long way. Also, mentioning a simple thanks when making invoices using free invoice templates online can go a long way.
Also, make sure to send automated payment reminders to your clients if a payment is due and then once a week after that. While this is important, you also need to keep your client informed of your progress. Besides, make sure you to do the changes suggested by them at the earliest.
One of the most important things is to use the same point of contact for all dealings. It can take time to develop an understanding and build a rapport with a new person and may also lead to disturbances in the correct flow.
Late Payment Charges
Make sure you lay out a clear plan for customers who default on payments. You can also choose to charge an advance from them. Also, charging a portion in advance works well. While the late fees may not be large, make sure it gives out the message that this behavior will not be tolerated. Besides, you will look more professional and will stay in alignment with client expectations.
These were just a few tips to help you maximize your cash flow. What matters the most about these tips is to be consistent. You can easily project your cash flow and scale your business faster when you send invoices regularly. Also, the right online invoicing software can cut your work in half and save you time and money. So, now stop waiting further, and invest in a good solution today!