If your business is like most, you probably send and receive invoices regularly. Are you still printing and mailing invoices to your customers? If so, you’re likely wasting time and money.
Fortunately, there are a few ways to streamline the payment process and make it more efficient for everyone involved. In this article, we’ll tell you how to streamline your invoice payments processes.
Accept Digital Invoices
The first step toward streamlining your payments is to accept digital invoices. This may seem like a no-brainer, but many businesses still use paper invoices. Paper invoices are less efficient and more expensive.
With digital invoicing, you can easily send and track an invoice for payment. Your customers can also pay online with a credit card or bank account, which is more convenient than mailing a check.
There are plenty of invoicing software options available, so find one that fits your needs and start using it today.
Automate Your Invoice Payment Process
Automation will be easy once you begin accepting and sending electronic invoices. You can start by automating your account payables. This will allow you to receive invoices on time.
Automating the account payables will also make it easier for you to manage who approves the payment and get real-time notifications and reports.
You can look for a virtual cards company that offers B2B payment solutions to allow you to automate your invoice payments. An example is Bento for Business, which will enable you to settle invoices with your vendors digitally. All you’ll need is their email address.
Have Clear Invoice Payment Terms
When sending invoices for payment, be sure to include clear payment terms. Clarity will help avoid any confusion or miscommunication down the road.
Be clear on whether you’ll need a purchase order before completing a sale. You should also stipulate your preferred invoicing method. Choose a method that will make it easier to process invoices.
It’s also good to state the information you want vendors to include on the invoice.
You should also be clear about the due date and any early payment discounts. If applicable, include late payment penalties to encourage your customers to pay on time.
Standardize the Workflow for Your Accounts Payable
Your invoice payments will be more efficient if you have a standard workflow for accounts payable. You should have a systematic system for managing procedures from when you receive a payment invoice to when you pay it.
Your system should stipulate the invoice entry method. It should also have procedures for receipt reporting and credit management. Also, ensure that you manage all your accounts payable from a single location to reduce redundancy.
A single location will help you organize your invoice payments.
For instance, you’ll notice older invoices and prioritize them to avoid late payments.
Streamline Your Invoice Payments Using These Tips
Don’t let late, partial, and missed payments disrupt your business’s cash flow. Use these tips to streamline your invoice payments processes and make them more efficient for everyone involved.
Automation, digital invoicing, and clear payment terms will go a long way toward making the process smoother.