Managing cash flow can be one of the most challenging parts of running a business, especially if you don't have enough money coming in to cover your costs. One of the best ways to get on top of your cash flow is to ensure that you've got cash coming in as quickly as it's going out.
Unfortunately, this is easier said than done. As you might have already experienced, cash flow can become an issue when your customers are slow to pay you despite your agreed payment terms and arrangements. Often, it seems that being overdue is a non-issue for them and they become really hard (and time consuming) to chase.
So what's the solution? It's actually suprisingly simple - get your invoices out faster! The sooner you invoice your customers, the sooner you're paid. Which means you’ll always have the cash you need to keep your business ticking along nicely.
There are two simple ways you can speed up your invoicing:
1. AUTOMATE YOUR INVOICE SENDING
Automation streamlines your invoice process, allowing you to generate and send invoices instantly. It also lets you stay on top of your paperwork so you can dramatically cut down your admin and say goodbye to that time-intensive manual billing.
If you aren't doing this already then the first step is implementing an easy to use system that does all the work for you. And that's where Ordermentum can help you. Not only does Ordermentum make B2B ordering and payments easy and hassle-free, you can also generate invoices instantly.
Specifically designed for the food and beverage industry, Ordermentum can automatically create invoices and send them to your customers as soon as an order is placed. This drastically reduces the amount of time it takes for you to turn around an invoice and it means your account is automatically sitting with your customer's accounts payable ready to be paid.
Through Ordermentum you can also charge your customers instantly via credit card or direct debit. What's more you can easily see which payments are overdue so you can chase them up anywhere, anytime and you won't miss that often elusive window of opportunity for getting your customers on the phone!
And for those customers who seem to be having a little trouble finding your invoice on their system? There is a handy "charge now" button that you can use to process the payment yourself. These are just a few of the features that can help keep the money steadily flowing into your business so that you keep on top of your cash flow.
Like the sound of all this and already use a web-based accounting software? Ordermentum seamlessly syncs with top accounting systems like Xero and MYOB so it's just a simple add-on to your existing procesess.
Want to know more about Ordermentum? Click here.
USE INVOICING BEST PRACTICE
To encourage your customers to pay on time or as soon they receive your invoice your invoices need to be clear and accurate, so we recommend following these simple steps:
1. Send out professional looking and easy-to-read invoices. Make sure it includes:
- Your business name, contact information and your logo
- Your customer’s contact information
- The specific invoice amount details
- A breakdown of the products your customer has ordered
2. Always include the exact due date and don't use generic statements like “Payment must be issued within 30 days upon receipt.”
3. Always include your payment terms. Even though you have already discussed it with your customers beforehand, it’s still important that you put your payment terms in your invoices. This will remind your customers about your payment period and the possible penalties you'll implement if they don’t pay by the due date.
4. Include a “Pay Now” button or link. Emailing an invoice with a “Pay Now” button will help you get your money sooner. Your customers can pay you instantly using their credit card, debit card, or PayPal account.
Cash flow management doesn't need to be a headache. Just remember the sooner you invoice the sooner you'll get paid. What's more, we are here to help. Talk to one of our team members today.
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