How often should you be invoicing? How spending 10 minutes a day will help get you paid.
You set up a business because you’re passionate about what you do, you’re passionate about the product or the service that you provide someone. You didn’t set up a business to raise invoices.
Corporations invoice monthly, they can afford to invoice monthly, it serves them best in their time and processes to invoice monthly, I doesn’t mean you have to invoice monthly.
I recommend to my clients that they invoice on the day they complete the work or they agree the job, subject to whatever their terms and conditions are.
Why do I recommend this?
Well, if you do it on the day that you’ve done the job, or the day you agree the job, you’re giving them no reason to delay your payment.
If you set your template up right, once you set your template up for your invoice, whether you’re using Microsoft Excel, Microsoft Word, any other kind of office system or whether you’re using an accounting software, it should take you no longer than thirty seconds per line to raise an invoice.
Ten minutes a day to raise your invoices
Say each day you have ten invoices to raise, six products per line, thirty seconds a line, that’s only ten minutes.
Done daily, it’s manageable. Done daily, done proficiently, done in a timely manner, your customers will think of you, “Wow, not only are they brilliant at what they do, they’re also really on the ball, because I’ve already got this invoice.
I really must pay them, because obviously they’re going to know if I’m late.” By invoicing as soon as you’ve done a job or agreed a job you are helping your cash flow, you are giving your customer confidence in you.
If you delay invoicing, they might delay paying. I know companies around here where I can get a product off them and by the time they’ve sent me that invoice I’ve used that product, because I only wanted it for a specific thing, I’ve forgotten I even ordered the product from them, and then where’s my incentive to pay the invoice?
Whereas if they’d have sent the invoice with the delivery then I’d have gone, “Oh yeah, I’ll pay that now.”
Why you should invoice daily
Incentivise your customers to pay you by invoicing in a timely manner.
There’s so much software out there to help you, so make sure you invoice as soon as possible.