Keeping track of your invoices can be a time-consuming and tedious task. When you’re trying to run a small business on your own, effective accounting is going to be the last thing on your mind.
Unfortunately, many small businesses find themselves in trouble time and time again because they’ve failed to take better care of their accounting. It can lead to a disruption in cash flow, problems when filling in tax returns and a number of other issues that could be easily avoided.
With this is mind, we look at some of the ways you can organise your invoicing more efficiently.
Set Aside Time For
Tedious Invoicing Work
No small business owner really enjoys doing their accounting but, unfortunately, it comes with the entrepreneurial status. To make things easier on yourself, set aside some time on the same day each week to go over your invoicing records and make sure they’re all up to date. By dedicating a specific amount of time to do this, you’ll be less likely to put it off.
Use An Online
Managing your own invoices is not only time consuming but can be quite tricky too. By using an online system you can create, send and track all of your invoices from one dedicated space. In addition, you can also use online software to remind you when you are supposed to send and receive money from clients. Being able to see who you’ve paid and what’s outstanding on one handy page makes your accounting nightmares a little less dramatic.
Keep Paper And
Whilst online invoicing software can cut down your admin time dramatically, it’s still sensible to keep paper copies of your invoices as well. It’s not smart to rely wholly on one method or another, simply because you don’t know when something may go wrong. Using both methods will cover you for all eventualities and as long as you set aside time to regularly discard old paperwork, you won’t have to worry about it clogging up your workspace.
If you’re going to start keeping paper invoices, you must make sure to file them correctly. Getting into a good routine from the beginning will stop you from drowning in paperwork later on in the year. Make sure you have separate folders for each client and within those, have different files for each payment category, e.g. labour, freelance, product resources etc. Finally, order these by date and you’ll be left with some impeccably organised invoicing.
When it comes to invoicing, you only have to put in a little each week to get a lot back out.
Follow this advice and you should be able to keep your invoicing worries at bay.