If there’s one important bookkeeping tip that we always like to pass on to small business owners, it is to always make sure to stay on top of invoicing.
Put simply. If you don’t invoice regularly and promptly, you’re leaving your money on the table.
It’s tempting to put your invoicing off until later and gradually let it slide altogether, only to end up in a mad rush when you find you have a cash-flow problem. If this sounds familiar you’re not alone but if you don’t stay on top of your invoicing it could affect the financial health of your business down the track.
Many small business owners are just too busy to do everything that needs to get done in a working week. And when the working week hovers around 100 plus hours it could be time to consider outsourcing….but more on that later.
Make invoicing a priority in your business
Issuing invoices promptly and regularly, or as soon as work has been completed or goods delivered, is the most sensible way to do business. People can’t pay you if you don’t invoice them. Invoicing on a regular basis not only makes it easy for them to pay you it also sends a message that you’re running a professional operation.
Make it a priority to deal with anything sitting in work-in-progress that could be invoiced and collected on a regular basis. This not only keeps your paperwork more organised it will help improve cash-flow for your small business – and in turn, help you grow your business.
Tips for staying on top of your invoicing (and increasing cashflow!)
Invoice = revenue = cashflow
It’s one of the simplest, yet most often neglected areas of small business. But with the proper systems and processes in place, and the with the help of today’s technology, you can invoice promptly – and sometimes even collect on the spot.
Using a professional bookkeeper, or simply installing the right accounting software into your small business, can help enormously.
Having statements out early and having the ability to run reports that alert you to overdue debtors will make a huge difference to how you manage your books, and take a lot of the stress out of running your business.
Give us a call or email us to find out how we can help you with your bookkeeping. If you’re just not ready to outsource yet we can help you set up the right accounting software for your business.
This article was written by gabi