Running a business is difficult enough without having to worry about tracking your finances. Keeping accurate records of invoices and payments is essential for any business. Not only will it ensure that you are paid on time and in full, but it will also make filing taxes easier. Here are some tips for managing your invoices and tracking payments in Australia.
1. Keep on top of your invoicing: Although it sounds obvious, make sure that all invoices are sent out promptly with accurate information. This includes making sure that the details of goods and services provided, the terms of payment and any discounts are clearly outlined in the invoice. The more detailed and accurate the invoice, the more likely it is that you’ll receive payment on time.
2. Automate your invoicing: Consider using an invoicing system to streamline the process. This can save time and money, as well as reduce errors. Automated invoicing systems can help you track your invoices and payments more efficiently, as well as remind customers of their payment obligations.
Suddenly, customers get invoices when they’re owed and you also have all the necessary evidence when disputes arise. For example, you can easily track all your invoices and payments, as well as their due dates.
3. Follow up on overdue payments: Pending payments can cause cash flow problems for businesses, so it’s important to remind customers of their payment obligations. You should also make sure to follow up on any overdue payments as early as possible. Automated invoicing software can help you send timely payment reminders, so customers can make their payments on time.
When customers don’t make payments, the worst thing you can do is ignore it. Instead, try to stay in touch with them and find out why they haven’t paid. The second-worst thing you can do is send aggressive messages because it could be that they simply forgot, life got busy, or they had difficulty understanding the invoice; a gentle reminder will be more effective in these cases.
4. Offer various payment methods: You can also offer different payment methods like direct bank deposits or credit card payments, as well as payment plans in case they can’t pay the full amount at once. This will make it more convenient for customers to pay, which could help you get paid sooner.
5. Monitor cash flow: One of the best ways to manage invoices and payments is by paying close attention to your company’s cash flow. Track all the invoices you sent and payments you received regularly. Knowing how much money is coming in at any given time will help you anticipate potential cash flow problems before they happen.
6. Hire an accountant: If you’re feeling overwhelmed by managing invoices and payments, consider hiring an accountant. An accountant can help you keep track of all your financial transactions and advise you on the best strategies for managing your finances. This can help you stay organised and ensure that all your invoices are paid on time. If you’re not good with money, your professional will advise when money is tight and when you need to act to avoid problems.
7. Keep machines up to date: If you use EFTPOS machines, many make the mistake of ignoring connectivity issues; don’t let this happen to your EFTPOS machine. Downtime can lead to lost customers and lost revenue, so make sure to regularly check your EFTPOS machine’s installation and repair any problems as soon as they arise.
With all these tips in mind, you can finally manage your invoices and payments like a pro. Keeping track of all the details surrounding money can be overwhelming, but with these strategies you can monitor your finances well!