I always used to send my Sales Invoices out at the end of the month, when I had done all the work that needed to be done. However, I found that it didn't really work all that well for cashflow purposes and so I decided I would stagger sending out my invoices and when they became due for payment. Some go out on the 1st of the month, some on the 5th of the month and some on the 15th of the month and as a service provider it works quite well for me. All of my sales invoices are due for payment within 14 days.
However, if you are a product provider I would suggest that you send out the Sales Invoice with the product, that way you will hopefully receive payment much sooner than saving all your invoicing until the end of the month. Why is this a better idea and why would I bother going into my accounts or word programme to do this, surely it is taking precious time away from making money from selling. It's better to have the money in your bank than in your customers.
One thing that I have realised throughout my career in finance is that a 'sale' is not a 'sale' until it's paid or the money is in the bank. You have to send out your sales invoices in order to receive the money and the sooner you do so, the sooner you will receive the money in the bank and you have to make sure that you let your customers know when their sales invoices are due for payment.
However, if you are a product provider I would suggest that you send out the Sales Invoice with the product, that way you will hopefully receive payment much sooner than saving all your invoicing until the end of the month. Why is this a better idea and why would I bother going into my accounts or word programme to do this, surely it is taking precious time away from making money from selling. It's better to have the money in your bank than in your customers.
One thing that I have realised throughout my career in finance is that a 'sale' is not a 'sale' until it's paid or the money is in the bank. You have to send out your sales invoices in order to receive the money and the sooner you do so, the sooner you will receive the money in the bank and you have to make sure that you let your customers know when their sales invoices are due for payment.
If you go to the petrol station to fill up your car, you can't just drive off without paying, you are asked to pay by cash or card (even if it is a credit card or fuel card) and you are given a receipt (invoice). Same if you go food shopping, they don't just let you fill up your trolley and take the food out of the shop. So why do business owners send goods out to customers and don't include an invoice along with the delivery note, you have to produce a delivery note for most things and an invoice is a delivery note with prices on.
Does any of this ring any bells with you, not quite sure what to do with your invoicing and how to save time; don't worry I can guide you through your systems and help you to find a way of getting those invoices out quicker and the money in your bank, just give me a call or book a complimentary 1 hour review through my online booking system, you choose a time and date to suit you.
Does any of this ring any bells with you, not quite sure what to do with your invoicing and how to save time; don't worry I can guide you through your systems and help you to find a way of getting those invoices out quicker and the money in your bank, just give me a call or book a complimentary 1 hour review through my online booking system, you choose a time and date to suit you.
In today's world there are lots of online accounting software that can produce a sales invoice from your smartphone, it only takes a couple of minutes. I use Quickbooks online for my accounts, but also use Xero and Sage 50c for my customers accounts and both Quickbooks and Xero enable you to send invoices from your phone, how cool is that?