Running your business is primarily about earning money, which is no secret. Your income covers your business and personal expenses, pays your employees’ wages, provides food for your table, and allows you to enjoy life by engaging in activities you love.

One of the most crucial aspects of your business is ensuring that your clients pay you on time. Establishing a process that simplifies this for everyone involved, including your clients, is essential. Remember, without your clients, your revenue and business would not exist.

I’m sure you already understand this.

How can your business receive payments more quickly?

Here are five easy and practical tips that I would like to share with you.

Make sure your invoice template includes all the necessary information. It is common to find missing bank details, payment terms, and other crucial information. I process many invoices for my clients daily, and this issue arises frequently.

How can you expect to be paid if your invoices lack essential details for smooth payment? While you might assume that your clients will refer to their contracts, they may not take the time to do so.

As a business owner, you know that the administrative side of running a business can be pretty time-consuming. Your clients likely face similar challenges. If they receive an invoice with missing critical information, they are more inclined to set it aside and deal with it later. This can delay the payments you receive.

To ensure you are paid on time, make certain your invoices are thorough and present all information clearly.

Must-Have Items on Your Invoice

1. Invoice Date: Clearly indicate the date the invoice was issued.

2. Due Date or Payment Terms: Specify the due date or payment terms, such as "30 days net." It is advisable to provide a specific date instead of just mentioning payment terms. If you only include payment terms, your client must calculate the due date by adding the term to the invoice date, which can cause delays.

3. Bank Details: Include accurate bank details so your client knows where to send the payment. Double-check that these details are correct.

4. Other Payment Options: This is optional. If you offer payment methods beyond your primary option, list them. Doing so can reduce the number of client inquiries about alternative payment methods, which saves time and helps expedite payments.

5. Your Name/Business Name: Surprisingly, some invoices lack this essential information. If we receive an invoice from an unknown person or business, we hesitate to make a payment, as it could be a scam.

6. Service/Product Description: Clearly describe the services or products you are invoicing for. This will help prevent clients from asking for clarification before making a payment, as busy individuals can easily forget details.

To ensure timely payment, ensure your invoices are comprehensive, and all information is presented clearly.

Set Automated Reminders

Let's be honest: clients sometimes forget to make payments. But we also fail to follow up with them. With so many things to remember while running your business, it's easy to overlook payment reminders. Unfortunately, this can lead to delayed payments and negatively impact your cash flow.

The best solution is to use accounting software that allows you to set automated reminders. For example, Xero accounting software provides default reminders, but you can customize them to be sent out whenever you choose, including specific messages you must convey.

Combining this feature with an automated bank feed offers the best solutions for managing your business finances.

Enable Direct Payments from Invoices

It is highly recommended that you utilize this feature. To implement it, you'll need accounting software, such as Xero, and a payment service that accepts card payments, like Stripe. By linking these two systems, you can add a button to your invoices that allows clients to pay directly using their cards.

Remember that this solution comes with additional fees for Stripe or other payment providers processing card payments. It's essential to evaluate whether implementing this feature makes sense for you now or if it's something to consider for the future. However, if you regularly handle a large volume of transactions and you've received feedback from clients indicating that this is a convenient option, it could be beneficial.

Create quotes that clients can quickly approve and then convert into invoices.

This is an excellent solution to prevent issues when clients claim they didn't expect an invoice, leading to lengthy disputes and delays in payment.

I’ll demonstrate this process using Xero, although other accounting software may have similar features. You can create a quote in Xero and email it to your client for approval. Once approved, you can easily convert it into a sales invoice. This eliminates the need to re-enter all the information from the quote onto the invoice, saving you time and effort.

Additionally, Xero allows you to copy previous quotes, which is a great time-saver if you frequently quote similar services. Since your client actively approves the quote, this process helps minimize potential payment disputes between you and your client.

Use Mobile Apps to Send Invoices on the Go

Many accounting software programs come with mobile apps. If you currently use accounting software for your business, check if there's an app available for download. If you haven't yet implemented accounting software, we can assist you in finding the right solution for your business. Just email me, and we’ll discuss the best options for you.

Once you have the app, you can invoice your clients from anywhere worldwide and send those invoices instantly. Imagine you're on holiday, unable to access your software, and won’t return for two weeks. With the app, you can quickly create and send invoices in minutes, ensuring you get paid while you continue to relax.

Now that you’re prepared to implement these solutions, you might have one more question:

What is the best software for invoicing?

After working with various accounting software, Xero is my top choice. It helps you get paid faster and offers a wide range of features to support your business. Xero provides different accounting packages tailored to meet various business needs and can easily scale as your business grows.