Handle Payments like a Pro

One of the biggest problems for small businesses and freelancers is that they often do not get paid on time. Debtors, late payers and defaulters always seem to be pilling up so much so that small businesses can even go out of business! But studies show that it does not take clients longer to pay because they are located geographically far from the service providers. The lateness of payment either depends on the faulty approach of the business owner or the difficulty in the payment mode. If you pay proper attention to these weaknesses and negotiate terms well, you will get paid faster and the time you waste waiting for a payment to arrive can be fruitfully invested in earning newer clients.

Sending estimates of the entire cost of the project before commencing the project or sending invoices of costs incurred at regular intervals even while the job is in progress can improve your chance of getting paid faster.

You are a professional. If you are to be taken seriously then your work should show it. But don’t just stop there. Take it a step further and make your invoices professional as well. Mention references or order numbers and other details.

Negotiate payment terms in case yours are different from your client’s ones. This must not be left to be taken care of when the moment of payment arrives.

Keep a checklist of which payments are made, which are pending, which are close to being lost causes and need to be taken care of legally.

If you are making phone calls to remind customers or clients about payment then keep a note of what at times you are making the calls because though you want to get paid you do not want to bug the life out of your clients by nagging them for the payment as this is sign of a bad businessman.

Set a time within which you expect to get paid. People always seem to react better to payments when they are given a fixed deadline like 3 weeks or 30 days.

Consider your deal before making it. Some jobs will inherently take longer to pay than others. If you cannot afford the time that is spent waiting for the payment or a regular cash flow is important to your business then it is best not to make the deal in the first place.

To do away with all these problems a simple solution will be to use an online invoicing service. Do not go by various myths that these services are not secure and too expensive. These services can actually make the payment process easier and faster as they provide better and more secure payment gateways to customers. In an age where communication has been made so much faster it is like a trip to the Stone Age to insist on a paper cheque as a payment mode or  waste time waiting for one to arrive.

Prevalent Misconceptions Regarding Online Invoicing

Technology has conquered almost every field of business. Right from storing the data, to Customer Relation Management, backup and recovery to accounting processes like preparing invoices, estimating profit and loss statement, online softwares are available for all the business management practices. Despite of the fact that modern technology is nurturing in a fast pace, there are some set of people who still feel reluctant to shift to online invoicing process. People think that preparing bill manually is much more preferable than using automated machines. Though going paperless has become motto of most of the industries, people are still dicey about using the electronic method to generate bills. 

There are some myths about using online invoicing software. Let’s focus on the most common myths about this billing system:

Paper invoicing is cheaper than online:

This is one of the most common and expansively believed myths. People often tend to assume that online invoicing is expensive but do you think that papers come for free?  The cost of papers, printing stationary, postage and stamp all does require cash (except if you own a stationary shop). In fact as compared to these expenses, online software is pocket-friendly and of course environment-friendly too. It is one time investment option; you don’t need to spend again and again. Therefore going online is a cost-effective solution.

It is not easy to understand:

Often people presuppose that if you had to use computer application then you should be well-versed with the computer standards but certainly that is not necessary. Even a person who is not technically sound can easily operates invoicing software. Online bills are actually cheaper and effortless than manual billing.

Online software is less secured:

Anybody who is working on online system can scream on top of their voice and say ‘This is a Myth’. Nothing is more secure and safer than computerized billing system as online software allows storing the data on cloud which can be retrieved anytime and maintains a backup. The software is tested on regular intervals therefore your data is secured unlike manual bills where there are chances of misplacing. Only the person who accesses the account can view the invoicing details therefore it maintains privacy.

Clients are not contented with online process:

It is just an excuse to run away from the realty that you are not ready to adapt the change. Blaming on others is a common human habit.  In fact no client would like to deal with a business that is behind than others. Using modern business techniques creates impression on the clients and helps to main healthy business relationship with them.

 Shifting to technology is time-consuming:

 To get better results, you need to put some efforts. Success doesn’t come easily therefore you need to invest some time to switch from conventional method to modern technology. Some extra time will be consumed only at the initial stage but in long run you will surely appreciate the change made. The time which was consumed while shifting will all be compromised later. Online invoicing is time-saving business solution.

So come out of all the misconceptions and get accustomed with the modern means of billing process and take your business to the next level of success.