If I delay invoicing, will it delay payments?
One of the hardest things for small businesses to do is to keep on top of administration, including invoicing. I regularly get asked, “If I delay invoicing, will it delay payment from my customers?”
The truth of the matter is, in my view, it shouldn’t do, but it can. If you procrastinate over raising and sending your invoices your customer may feel it’s their right to delay your payment.
This may seem harsh, it is harsh but it is also a fact of the way human brains work.
What impact does late payment have on business?
In January 2015, BACS reported 59% of UK small and medium sized businesses had a negative impact on their cash flow with an average of £31,901 in overdue invoices.
What steps can you take to avoid invoicing late and potentially delay payment?
So how can you avoid sending out invoices late? Sian Rowsell’s guest blog on how to avoid procrastination may help you invoice on time to get paid on time by not putting the job off.
Getting your invoice template right, will save you time and enable to invoice in a more timely manner, read how to set your invoice template up correctly here.
So my answer to your question is, delaying invoicing shouldn’t delay your payments but it may, so set time aside once a week minimum and raise any relevant invoices for that week, whether pre-work invoices (proforma invoices) or post work invoices (invoices).
Share your experience…
Now is your chance, what methods do you use to ensure you invoice in a timely manner?
How have you found this has impacted your business?