For SMEs and young entrepreneurs, knowing what to prioritize when running a business can be complicated. However, it should be noted that one of the main responsibilities of a business owner is billing. Indeed, good billing management is a necessary condition for business development. Here are some tips on how to optimize your invoicing.
Why is it important to manage your company’s billing?
Invoicing is an essential step to ensure the good management of a company. It is, in fact, the basis for the sustainability and growth of the company. First of all, a better management of the invoicing is essential for the good functioning of the accounting of a company. To properly manage your cash flow, you need to know exactly where your money is coming from and where it is going. By managing your invoices wisely, it is possible to quickly and easily identify if there is any anomaly in your sales. From a fiscal point of view, good invoice management is equally important for your business. Indeed, the law requires you to keep your invoices and accounting documents for a certain period of time. Within the framework of the audit, the tax authorities may ask to see your invoices. In this case, it is necessary to keep them well organized. To manage your invoices, you just need to set up some structuring.
Organize your invoices efficiently
Since most of your cash flow depends on it, poor invoicing can seriously affect your ability to pay your operating expenses. That’s why it’s important to organize your invoices efficiently to keep your cash flow intact. Establishing a clear approach will help you better understand your invoices. For example, you should start by developing billing rules and conditions. Not only does this help enforce certain processes, but it also protects you legally. It’s best to issue an invoice as soon as the goods or services are delivered. In order to get paid faster, you need to issue the invoice right away. It is possible to invoice your customers immediately with the help of a mobile app that manages quotes and invoices.
Put the paper aside and send your invoice via email or mail. Mailing your invoices and receiving payments (checks) can slow down your billing process. With a good e-invoicing solution linked to your accounting software, you can even provide a link in the invoice so your customers can pay their debts immediately
electronically. If you don’t offer your customers the possibility to pay remotely by credit card or bank transfer, you lose all the advantages of electronic payment: simplicity, speed, security, etc.