Liquidity is the lymph of the enterprise. Billing and cash flow management is key to effective management 5 tips to improve …
Do you want to find a system to improve your business billing processes, but do not know what strategies to implement? Below we provide you with 5 practical tips that will help you improve cash flow management by increasing your business liquidity in an easy and immediate way …
#1 – Send invoices as soon as possible
The first rule to receive customer payments is surely to deliver bills of the products and services sold as soon as possible, avoiding time to waste unnecessarily: in this way, in addition to regularizing yourself from the point of view of taxation, you will also pass a serious, precise and timely professional.
#2 – Always indicate payment terms
All invoices sent to any customer must always understand the exact terms of payment, because if you do not specify a period within which you will be able to settle for your account, you may get the money far behind what you expect.
If you want to speed up your transactions and increase your business cash flow, you can, for example, offer to the public convenient formulas like payouts within 10 days of signing the contract and receive a 2% discount on the total amount to be paid. Another worthwhile stratagem is to apply for a long-term service (a few months, a year or more) a 50% down payment at the start of the collaboration and the remaining sum to installments or work being completed.
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#3 – Guarantee clarity and simplicity
If you want to receive the payments you need, you have to propose a simple and effective billing system that will allow the public to understand how much the flight is to pay, when and for what service: cure each single part of the bill making it easy to identify and read Date of issue and the number of the same, the data of the company in debt (social name, address, VAT number, etc.), the deadline and payment methods; Enter, if possible, a short description of the service to be paid or of the product and the amount also unitary. By setting the document in this way, you are certain to provide customers with all the information they may need to proceed with the balance.
#4 – Provide online payment methods
Since recent studies suggest that online payment methods such as PayPal or other similar solutions typically receive the money 17 days ahead of others, even if you want to put your customers in a position to be able to pay you faster, you should immediately embrace New technologies so that we can have solutions that can be immediate and at the same time safe.
#5 – Prepare an action plan for customers who do not pay
To ensure good corporate liquidity, it is very important to ensure that all customers settle their debts as early as possible within the agreed time frames. When this is not the case, it is necessary to use a very specific action plan to act according to the delay of the payments in question.
These are our 5 practical tips to improve your business billing processes: effective solutions that you can take advantage of every day with the primary goal of getting you the most rewarding payouts.
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