Keeping the fluctuations with your invoice sending time can put a negative effect on your customer, and this will bring down your market they are your word of mouth and you don’t want a customer going out and put a non-performing review against you. That is it becomes vital to understand the importance of keeping the invoices timely and why one should focus on keeping a professional approach to sustain the customer associated with the company along with a maintained satisfactory level. This can be done by using accounts receivable management software.
Invoices are a great method to keep the payment tab going and it helps in maintaining a healthy rate of cash flow as well. But here we will talk about your organization where you can inculcate 3 steps invoicing method which we will be talking about later in detail. It will depend on what time you would like to choose for sending it, whether it is done the moment it is received or you wait until the monthly work is done where you have all invoices together, or there is some dedicated person assigned by the company who is taking care of all the invoice payment timings?
The industry doesn’t decide what should be your invoice timings and since there are a lot of questions involved in mastering the timings, one has to work by themselves to improve the ability to carry out the work with greater efficiency. But in the end, the major question of how and who will decide the right timings at all? Choosing accounts receivable automation software will keep the cycle either in the initial days of the project or after a certain percentage of completion or once it is completed and delivered.
In this article, we will be talking about all the important aspects and roles involved in invoice sending and why such software is turning to be such a great resort for companies to improve the cash flow:
1. AT THE INITIAL STAGE OF THE WORK
When the invoice is sent at the very beginning of the work, you could account for various benefits, such as:
- Secure and insured management
When you have sent the invoice at the beginning of the work assigned, you get free from the burden of miscommunication, dubious nature, misunderstandings, or lack of communication later on retrieving the payment for the assigned work. Putting the invoice well in advance to the clients helps your company in having the payment completely and which will save you from further issues of facing naysayers or any fraud for whom it is regular to do such sort of work where they get their work done in respect to no payment. Accounts receivable collection tool provides you with a broader perspective of knowing the importance and taking full advantage of the upfront payment from the clients where you are providing errorless work.
- The better reputation of your organization in the market
For any company or organization, their customers are very important and they are much more than being a source of income. Customers are like a family with whom you to keep a good relationship since it’s a give and take the process and it can only be sustained if you keep the services up high with great quality content. In return, they will make you thrive with their sustainability and also works as a great word of mouth. To ensure that it is all done efficiently, make sure you are managing timely payments with the help of accounts payable software.
2. AT THE FINAL STAGE OF THE WORK
Since we will be talking about 3 step methods of invoicing, this out of all stands on top since most of the companies, as well as clients, choose to go with this method only. This method ensures that the timing of invoice and project is kept in such a syncing manner which allows both the client and you to receive the payment simultaneously. However, the short time gap is allowed in between which ensures that you are getting the inspection of the work done as well and if certain changes are required, can be done timely.
3. GETTING IT DONE AFTER CERTAIN PART COMPLETION
It has been seen that the invoices are sent once certain steps or percentage of the work is completed and there are no prefix timings related to that. For instance, if the work is having ten parts included in it, partial or complete payment would be done after the completion of say, eight parts. This way it can work in both ways, where the receiver, as well as sender, is maintaining the professional relationship with this form. Having accounts receivable process automation will help you in tracking such payments without and humanely errors.
Author Name: Kenya William