6 Small Business Invoice Tips to Get Paid Faster

For many businesses, especially those on the smaller side, cash flow can make or break you.  Getting paid and, more importantly, getting paid quickly is key. The lag time between sending an invoice and receiving payment is a challenge for businesses, because the goods and services have been rendered, but the resulting payment may be a long time coming. The faster your business can get paid, the less this lag will be felt. In this blog, we’ll give small businesses 6 of our best small business invoice tips to help your small business get paid faster.

Small Business Invoice Tips

As you gear up to send your next set of invoices out, utilize these small business invoice tips to ensure that your business gets paid as fast as possible to stabilize your cash flow and keep your accounts in the positive:

1. Include a Due Date – If you aren’t already, make sure you include a due date with every invoice. Typically the invoice should be paid within 30 days of when the goods or services were rendered. Being up front about the due date and explicit about when you expect the payment will encourage your customers to pay within that window.
   

2. Make Payment Options Easy to Find and Access – Include the payment instructions and options right on the invoice itself, where your customers can easily find them and pay you. This might mean including a return envelope or a way to pay with a credit card over the phone. The easier you make it for them to pay you, the quicker they will do so.

3. Address the Invoice – If you are sending the invoice to another business, make sure you address the invoice to your contact person or the accounts payable/receivable department or department head. This will ensure that your invoice does not get lost in the mix of the rest of the mail and will be seen by the appropriate person in a timely manner.

4. Late Payment Fees – If your customers repeatedly pay invoices late, you might consider instituting a late-fee policy that penalizes customers who do not pay for your goods or services by the time the invoice is due. This will financially incentivize customers with a poor history of paying to do so.

5. Stay On Top of Your Invoicing – Your customers are much more likely to pay you quickly if your invoices are timely, organized, and correct. Make sure your invoicing is up to date and accurate to encourage your customers to pay quickly as well. Furthermore, stay on top of your customers who are late. Consider sending a second invoice, and don’t be afraid to check in with calls or emails, if need be.

6. Ask for Help! If your business struggles to get paid on time or has a hard time managing your cash flow, it may very well be time to ask for help! A professional accounting service can provide you with the support you need to make sure your invoices are getting paid to free you up to run your business.

Tally Services – a Northern Colorado business accounting and bookkeeping provider – is here to partner with businesses big and small to make sure all of your books, including your invoicing, are up to date and handled. Our goal is to radically improve your cash flow and remove tasks from your plate to ensure that you can focus on your passion and managing your team. Contact us to learn more about our services and how we can help your business succeed.