As a small business, it can be hard enough just remembering to send off your invoices on time, so avoiding complicated payments is a must. If difficult invoicing is getting you down, there are a few ways to set up effective payment terms with your client to help keep the cash flowing.
Our how-to guide offers tips and tricks to help make your invoicing easier and shows you how simple planning can take the hassle out of invoicing.
Set A Pay By Date Before You Start Work
When getting ready to work with a client, it’s always best to set a pay by date with them. This means that you agree a period in which your invoice needs to be paid by.
The normal timescales for this are 7, 14 or 30 days, any later and you are legally allowed to charge interest and fees under the Late Payment Act (1988).
Reference Numbers / Invoice Numbers
It’s important to put reference and invoice numbers on your statements as you send them out but as a payment term between you and your client, you should ask them to do the same with receipts or bank payments.
If you receive payment receipts for your invoices, then ask your client to reference each invoice on them. If you simply keep track via bank statements, then the client can reference the invoice number that way.
It shouldn’t take much effort on their part and can save a small business like yours, quite a bit of time and effort.
Agree What Needs To Be On The Invoice
A professional invoice needs to have all of the relevant information on it. Whilst most clients ask for the same basic information, others may want more.
Discuss exactly what your client would like on the invoices before you start sending them and make sure that you keep copies of your agreement.
This will help you to avoid any late payments due to a lack of information and could help you in the future if a client refuses to pay up.
Set Up Payment And Invoice Reminders
Whilst you can do everything in your power to make sure you are paid on time, sometimes it still doesn’t happen. Chasing up payments is a small company’s worst nightmare but it can be made easier.
By using an online reminder system, you can keep on top of unpaid invoices more easily and even set yourself reminders to send invoices out on time, meaning you don’t lose out on income.
Whilst your client has an obligation to pay you on time, you too have an obligation to send out your invoices on the correct dates, so reminders are important.
Invoicing Software For Small Businesses
With Numberjuice, you can set yourself reminders, create easy to read, professional looking invoices and keep track of monthly and yearly payments all in one neat little package.