One way to make collecting on invoices easier is to set up an automated invoicing system. Or, you can use invoicing systems that work with email and PayPal. Thankfully, today there are so many systems that you can surely find the right one for you.
In the “old days” you had to wait for a check to arrive in the mail; today you can use many different payment processors like PayPal, ACH, Stripe.com, and more.
Problems with Invoicing
Some of the most difficult aspects of invoicing are:
* Getting accurate invoices out on time – A real key to invoicing is to make accurate invoices that include all the work done up to the point of the invoice. Without a good system, you could forget work that you’ve done.
* Following up when payment is overdue – Sometimes payments are late; sometimes it’s the client’s fault and sometimes it’s your fault due to the invoice not showing up. You can’t know if you’re not paying attention and following up.
* Tracking payment to the right invoice – If you do manual invoicing and manual data entry, you may accidentally credit the wrong payment to the wrong invoice. Ask clients to include the invoice number on the check, or switch to an automatic invoicing system where your clients can click to pay their invoice online.
Here are some software solutions that can help.
* FreshBooks – This is a terrific invoicing software solution that allows you to accept several different ways of collecting payment. You can even mail an invoice through snail mail, or send through email. It has time tracking, expense tracking and many other features that help create accurate invoices automatically.
* QuickBooks – A professional solution that works in many ways, from allowing you to set up recurring payments, to sending one-time invoices, to collecting payment via ACH automatic deposit to your business account.
* PayPal Invoicing – You’ll have to make each invoice individually as it doesn’t have any auto features, but it’s free and included with your PayPal business account. It’s also easy to use and looks professional with your business logo included on the invoice.
* Recurring/Subscription Payments – Seek software that enables you to invoice and collect payment on a recurring basis. This way you don’t have to do it manually each month, which will be a huge time saver.
Using these systems can go far in helping you eliminate busy work when it comes to getting invoices out on time, accurately, and in a professional manner that demands payment without being rude or intrusive.