You need the cash flow to keep your business running. If the cash flow stops, your business can’t flourish and your family doesn’t eat. Creating product invoices in effective way is the cornerstone of getting paid. Invoices keep everything on record and you get paid faster and on time. Product invoices are the bills of products you have provided to your customer. It carries whole detail of the product sold, i.e. product sold, total price, quantity/number of items, and detail of when and how customer paid. In small business setups, the owners make their invoices by themselves, but large businesses and companies hire dedicated accounting professionals to handle invoices.
Using and creating product invoices correctly increases your chance of getting paid on time. In fact product invoice created in professional manner is a promise of payment on time for products delivered. In large businesses, where hundreds of invoices are sent out on daily basis, all of those are actually not paid on time. There are so many reasons behind late payments of product invoices that can be handled with a little care and understanding of this document.
Business owners sometimes face trouble with dealing delayed payments of goods delivered. To prevent this situation, they must figure out issues with their product invoices, that can be coped with easily if known.
Keep your format simple
A simple format enables the customers know and understand exactly about the bill they are charged for. Format of product invoice should contain simple and easy to understand lists of products billed, on e after another. Customers should be able to understand at a glance what they are getting billed for.
Avoid imprecise instructions
Writing full name of product with clear details will assist customers better rather than the store’s product code that a customer is not familiar with. Unclear details or instructions push the customer put the invoice on the backburner resulting in late payment.
Automate the invoice process
When you are running a large business and you deal so many customers a day, you must use automated invoice software. This software generates product invoices automatically to the customers when a sale or purchase occurs. Using automated invoice software condenses the rate of errors, and save time and money at a time.
Use professional language
Being very polite to your customers increases the effectiveness of product invoices. Keep giving them reminders in very respectful manner about due payment using phrases like “Please pay by the date…”. Moreover, “Thanks you for your business.” note at the bottom of invoice increases the chances of payment earlier and more business in future.
Include company logo
Including your business or company logo (usually on top right corner) helps customers recognize you at a glance. After all your logo is your business identification. Logo makes a product invoice look more professional and personalized. It pushes the customers pay the bills earlier.
Take charges on late payments
Some customers have bad habit of always making late payment. Depending on the nature of business, such customers can be made special note of late payment charges. Such notes usually create sense of urgency and a prompt feedback is expected either in form of payment or voice calls.