Enhancing Invoicing Processes to Make Payment More Convenient for Customers
An astonishing $825 billion sits in unpaid small business invoices in the U.S. and 81 percent of outstanding invoices are at least 30 days past due, according to Fundbox.
Late payment is a challenge that all organisations face, and spending time chasing unpaid bills adds to the cost of serving clients. For small businesses in particular, overdue invoices can prove fatal as they often don’t have the resources to cover the financial shortfall.
Yet, despite the importance of maintaining a consistent cash flow, many continue to rely on outdated invoicing processes, elongating payment times before documents have even left the building.
Symptoms of Inefficient Invoicing Processes
- Multiple occurrences of manual data entry – a waste of resources and increases opportunity for human error
- High frequency of document re-issues – bills that contain errors have to be reproduced and resent
- Inconsistent document layout and content – if each invoice looks different, customers may not trust that they are genuine and will be hesitant to pay.
Making it Easier for Customers to Pay
Invoice recipients have a duty to pay on time, but small businesses can help by making it more straightforward for customers to settle.
They should use specialist invoicing software to automate as much of the process as possible. It automatically generates bills from quotes, sales orders and contracts, ensuring that all invoices are accurate and consistent. The tool can also automatically create recurring bills, meaning long-term customers are charged at the same time every month without delay; as well as issuing automatic follow-ups on overdue invoices.
Invoices should be sent via the customer’s preferred method. If they manage their accounts digitally, they will want documents emailed, for instance. Moreover, small businesses can no longer simply accept two or three payment methods. In addition to cash, check and credit, openness to other payment options, such as Paypal, Ogone, Buckaroo or Adyen, shows flexibility, and enables customers to settle quickly via the method they are most comfortable with.
Visit our NeoInvoices by Odoo page to discover how overhauling invoicing processes and making it easier for customers to pay will shorten payment times.
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