Did you know that 40% of self-employed people average at least one overdue invoice of at least $2,500? If you’re self-employed, you may be familiar with this statistic. You may have experienced unpaid invoices and their disastrous effects on your business’ cash flow. You may also be wondering how your invoices can get you paid well and fast. I know as a Certified Public Accountant (CPA) and consultant, I have definitely felt the effects of it.
This has brought me to ask myself, like so many other entrepreneurs and consultants, the following question: “Is there some secret to invoices that actually get paid well and fast?” As it turns out, there’s a science behind it, and a pretty accurate one at that. As one of the most effective invoicing software companies on the market. Freshbooks has conducted a research on the types of invoices that actually generate positive payment. What they have found is as comforting as it is effective. Certain types of invoices written in a specific way tend to be paid in full, while others, well…tend to linger on businesses’ back burners indefinitely.
Based on Freshbooks’ study, the below infographic lists 7 tips you can use in your small business to write the kind of invoices that will get you paid faster and better:
Additionally, the new Freshbooks Retainers option helps you manage and regulate your cash flow through recurring invoicing, time tracking, and reporting. The new Retainers option allows you to plan for and forecast a certain number of hours to clients’ retainers. Invoices are then automatically set up, which helps run the business on auto-pilot, so you can actually focus on doing what you love. Most importantly, you can avoid the trap of setting wrong expectations with clients, and wasting time with unending discussions and negotiations. Lastly, you will look more professional with the ability to create streamlined reports for yours and your clients’ use. Overall, any change in project deliverables and scope will be dealt with more easily with this tool.
What changes will you make to your bills going forward?
The Corporate Sis.
