Many small business owners today say one of the major challenges they face is related to payment delays. And without an automated billing system, it is harder to track which clients or partners have outstanding invoices, and cash flow can be limited.
As a small business owner, you’re probably well aware of the importance of invoicing. After all, if you don’t invoice your clients, then how are you going to get paid?
Another challenge: Invoicing isn't always straightforward. Yes, of course, the basics are simple enough to understand once you have an invoicing system in place, but other day-to-day responsibilities can sometimes get in the way.
Here are some common challenges many small business owners deal with when it comes to invoicing:
- Sending invoices out on time. When your business is thriving and you're busy working around the clock, taking the time out of your busy day to send invoices can be challenging.
- Following up on overdue invoices. Time is always of the essence with a busy small business. Many merchants simply don’t have the time to call or email about overdue invoices.
- Dividing payments across multiple invoices. Account reconciliation can definitely be complicated. Make sure your clients include invoice numbers as references for every payment they make – this can help you understand which invoices have been paid.
- Ensuring that all completed work is invoiced. Time-tracking software can be useful here, especially when there are several people working on each client account.
- Creating an invoice that doesn't get skimmed over. You can create your invoices so that they stand out, but what's more beneficial is to build up a good working relationship with your client's accounts department.
As a small business owner, making a sale is only half the challenge. Owners must also take steps to ensure that the invoices they send out are paid in a timely fashion. And while big companies have been using automated invoicing for years, it has more recently become available in the small business environment.
Billing solutions are an investment worth making for organizations that have lesser profits, especially because it can save money on processing operations as well as streamline the overall payment sequence of events.
Thankfully, there are plenty of billing solutions available on the market today that allow small business owners to easily send out these all-important communications. BillingTree can provide details about these and other options.