Following a system where the invoice sending timing is not for your clients, then you are hampering the already built reputation or the process of building it since it will be taken as mixed reviews. You must be aware of the timing of sending invoices along with maintaining a professional approach throughout the process. To speed up the process you can consider the help of automated invoice management software.
Different organizations follow different methods while sending the invoices but we will be solely focusing on the approach you should follow for witnessing the positive changes. Which time do you prefer for sending them? Whether you go for instant action or you like until the month nears up its end? Have you assigned the job in your organization to a staff member who will make you aware of the situation and present with choosing different timings?
No matter which industry you are part of, whether you are a locomotive engineer or a super-skilled architect or run your grocery store, you have to work on your skills to keep the invoice right on time and this process might get a bit confusing for you initially but overtime this will help you to capitalize on various benefits.
But the question here comes is what exactly is the right timing and on which scale will we decide that? People have been sending it by taking help accounts receivable automation software before they start the project or choosing to go for the period where some part of the work is done or even after the completion of the project.
Today with this article, we will be talking about all the included factors and parameters one needs to consider while sending an invoice. We will also discuss about how using the perfect software for invoicing process will provide you the benefit you need of for making the right decision:
1. Sending the invoice before things proceed for the project
When you choose to keep the invoice as an upfront deposit, there are various benefits consists of it, such as:
a. When you put the invoice upfront and by this, we mean sending it well in advance before the commencement of the project, it helps you with better security and insurance. This is made possible by zeroing out the possibility of miscommunication or misunderstanding by using automated invoice management software.
You will have your hands on the advance payment from the client without any sort of deduction or partial payment chances. You will be keeping yourself aside from the usual naysayers or troublemakers looking to get their work done first and later on eloping when the time of payment comes.
b. Another crucial factor on the business front which it will work on is by maintaining the much-needed ease of relationship with your customers. This is important since they are the key source of your income and having a stable relationship with them will provide you stable income source as long as you are not compromising on your work quality.
c. There is no introduction needed when we say cash is the backbone of any organization. Since you will be working on multiple projects, this includes unplanned expenses where you need ample cash in hand which will be managed by various accounts receivable collection tools. Having enough cash will save you from the situation and you can proceed with all your projects.
2. Sending the Invoice on the Completion of the project
This is the most seek option chosen by the various organization while sending their invoices. The reason being the client and the main party both prefer this method for their projects.
This method includes keeping a fixed timing where you will be sending your invoice right on time once the project is received, evaluation is made and all the necessary changes to it are made, if required. This way up you and the other party will both be satisfied since getting things on time with no shortcomings is what we seek in the professional world. The efficiency of the invoice can be worked upon by using advanced software.
3. Sending the invoice while choosing custom period
The invoice can be also sent based on the custom period timing where a talk with the client decides the partial payment on the partial completion of the project. However, the schedule can dwindle a bit based on the overall progress.
Since the schedule is made with the agreement of the client, you might not want to be too pushy as you can damage the professional relationship you seek to manage with them. Using accounts receivable management software will allow you to have a tab on all the inwards or outwards payments without committing any mistakes on the way.