Doing business in a time when everything seems to go by so fast can be overwhelming. And with all the things that you need to think of, you can barely catch a breath trying to make sure that you’re on top of things.
Invoicing and inventory are two of the most crucial tasks in your sales funnel. Before you can get to your bottom line, you need to make sure first that you have enough stocks in your inventory and that you’re being paid on time to ensure consistent cash flow. Now if you’re still struggling in this area, there are ways to improve your process—from using invoice and inventory software to conducting regular audits.
Review your existing processes.
Sometimes, you’re so caught up in the chaos of running your business that you forget to see that your existing processes need improvement. So make sure that you take the time to go through your process to determine if there are hiccups in your workflow that need to be corrected and what you can do to improve them. Having Key Performance Indicators (KPIs) will also help you compare real-time performance to what should be your standard, so it’s best to create one if you still don’t have it.
Automate where you can.
One of the benefits of doing business in this age is that you have a lot of opportunities for automation. You just have to learn how to adapt to these changes to make your organisation better. Let’s face it: manual invoicing is tedious and exhausting. Plus, writing everything on paper has a higher chance of errors that could easily hurt your entire system if you neglect to address them.
Invoicing and inventory software changes the game by automating most of your processes. Depending on your needs, your software can convert orders into invoices, send payment reminders and keep track of every payment that goes into your accounts receivable. This way, you won’t need to pay a lot of people to do the job, saving you money on resources that you could put in the more important areas of your business. Automation also frees up the load of your employees, so they can focus on tasks that have a direct impact on your bottom line.
Create a clear set of rules for invoicing and inventory.
Like any other aspect of your business, having a clear set of rules when it comes to creating and sending invoices and doing inventory will really make a huge difference. If you’ve been struggling with delayed payments, maybe it’s not entirely your customers’ fault but because you’re sending invoices late. Creating a set of rules will help you and your team stay consistent in sending out these invoices, so you also get paid on time.
Regular inventory will also help you ensure that you have all the raw materials and products that you need when you need them. This helps to avoid any delays that could easily derail your entire sales process.
Establish your payment terms from the get-go.
A lot of businesses make the mistake of focusing too much on closing the deal and forget about establishing clear payment terms once the sale is done. But it’s very important to do this at the get-go to make invoicing and payment processing easier on both ends. This also prevents any disputes or misunderstandings that could easily hurt your relationship with customers.
Having clear payment terms also protects your business interests if a dispute leads to litigation. When every detail is set in stone, it would be hard for the other party to find loopholes that could hurt your business.
Always offer different options for customers.
Sometimes, you send invoices promptly, but payments still get delayed because you’re only offering limited payment options to customers. But if you expand these options to electronic fund transfers, credit cards or even payment apps, customers can choose which payment option is most convenient for them. This is a win-win since they won’t need to go through a lot of hassles and you get paid on time.
Keep your invoices and inventory records organised.
Whether you’re dealing with a handful of customers or a thousand, organisation can really make a huge difference in your business. Having a clear filing system where you keep all your records will make it easier for you to look for invoices when you need them, collate documents for tax season and just make sure that you’re not losing any important documents.
The Bottom Line
Of course, you have to make sure that every member of your team knows what your best practices are in terms of invoicing and inventory. This will not only help you maintain a consistent and healthy cash flow but also create a system that will help fuel your growth in the future.
So if you’re still looking for the right software to adapt into your organisation, give us a call and we’ll take care of your needs.
