Billing and Invoicing Principles That Small Business Accountants Need to Follow

Losing out financially when they are trying to go ahead in the business is really heartbreaking. More so, when it comes to small businesses, the blow is even harder. There are few billing and invoicing lessons that these small businesses need to follow for avoiding these hard blows.

Setting Terms

Businesses are entitled to set terms for the payment of invoices as per their convenience.  Obviously, it is no longer a thumb rule that the businesses have to wait for 30 days for payment or wait for a specific date of every month for the payment. Thus, it is a priority for every business to be very explicit with their clients about the term, when it comes to sending your invoice as well as when providing the clients with project pitch. The businesses will have to state their expectations around the due dates and late fees, and how the payments are to be made and the consequences in case of failure to meet payment deadlines. 

Chasing the Overdue Invoices

This is another principle that the accountants of small businesses in Perth like elsewhere would like to see their employers do. In many cases, the clients simply forget to pay or misplaced the invoice, or it might be that they never received the invoice in the first place. And in many cases, there are no malicious intentions at all – it is just an error of omission! Hence, to counter these circumstances, the accountants send the statement and then follow it up by giving a reminder call over the phone – and this works!!

In fact, it is the responsibility of the accountants of these smaller businesses to follow up on the late payments and consider enlisting the help of a virtual assistant who will help in this practice. And in extreme cases, they can even appoint debt collectors to amend things.

Invoicing at the End of the Project

 It is ideal not to wait till the end of the month when it comes to sending off the final invoices. Instead, it is ideal to send them the moment the project is done with. More so, with the advent of technology like cloud computing, it is now possible to send the invoice straight from the job site, the moment the project has completed. This is a much better step to facilitate unabated cash flow. On a side note, it is also wiser to ask for the testimonial from the clients for the feedback, with the service and its quality still fresh in their psyche.

Taking Care of Technology

With technology now readily available, it is wiser for the professional accountants in charge of businesses of small firms to let the software do all the hard work. If it is all about a business that needs to trace and track things and bill by time, the accountants need to use specific management software packages that are designed and developed to make the job easier and seamless, tracking the time and costs and producing invoices for the clients with the help of a single and unified streamlined system.

Maintaining Records That Back Up the Invoices

One of the critical advantages of using these software platforms is that it helps to keep the records straight and accurate. No matter whether it is about breaking down the time for the clients, or breaking the bill down to answer the queries from the clients, the accounts are always confident that they have rebuttals for the questions that the clients may raise on the invoice.