The Top 3 Invoice Management Mistakes Made By Startups
If you can create products or offer services, starting a business is a great way to profit from your talent. However, many talented individuals struggle to turn their idea into successful businesses, and a big reason for failure is invoice management. Invoice management covers all aspects of the billing process, from designing the invoice templates, to printing and even posting the invoices to clients. As various customers prefer to be billed in different ways, the task of managing invoices can quickly turn into a nightmare for many small business owners. If you are thinking of starting a company or have already done so, here are the top three most common invoice management mistakes you should look to avoid.
#3. Not Integrating Billing Platforms
Using multiple billing platforms for sending invoices and bills is a huge mistake that owners of fledgling businesses commonly make. Juggling multiple accounts will waste both time and money, complicating the process of sending out invoices and receiving payments. For instance, juggling both Paypal and card billing payments can unnecessarily waste time and stifle productiveness. To avoid this, it is best to use one integrated system that can handle all billing and invoice. Most integrated invoicing tools can track the entre billing process for you, which means that you know the details of every client account in real time.
#2. Not Using Custom Invoice Templates
Most people who start their own businesses simply use standard invoice templates and miss the opportunity to build brand awareness and appeal. Professionally designed custom invoice template will make new businesses stand out. This may include adding the company logo, as well as using colors or fonts that reflect the business and look professional. Small businesses that invest in custom templates report that clients are more likely to pay promptly. Eye-catching templates are more likely to end up on the top of the pile.
#1. Not Automating The Billing Process
For new companies with few clients, sending out invoices manually every month can seem like the only solution. In fact, this is a huge waste of time and resources. The problem is only compounded if the company has recurring orders from the same client. New business owners can easily find themselves wasting time drafting and sending identical invoices repeatedly. The smart solution is to automate the billing process by hiring a third-party invoicing solution. Invoicing services can automatically re-bill clients based on your information about the start date, the frequency, the due date, and the end date.
As David Linthicum pointed out in a recent article for Forbes, ‘technology is not something that solves all of your problems’. While invoice management software has many benefits, it must be levered around a sound strategy, and with the right people. For example, invoice management software will not be able to generate the paper invoices that some customers may want, let alone mail them. Even with the best software, budding business owners could end up stuffing envelopes. Firms offering automated billing can take over the entire process, even mailing invoices and sending them by snail mail if necessary.
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