While every business begins with the dream of making money, few are launched with any expertise in what to do with it. But don’t worry – we’re here to help. This monthly series will offer important accounting and financial management tips for those of us working hard, wearing many hats and wondering how to read a balance sheet. Here are some helpful tims for invoicing.
Tip #1 Establish Terms Up Front
Managing your cash flow is a vitally important part of being a business owner. Regardless of the industry you’re in, it’s important to be upfront and clear on payment terms when beginning relationships with new clients and customers. These terms outline when and how you expect to be paid by your client. Keep your business healthy and make sure you get paid on time by setting expectations early and following through.
Tip #2 Set Up A Process
To simplify your invoice process, we suggest you take advantage of invoicing systems that helps you get paid promptly. While there are a number of great options available, we recommend Harvest to a lot of our clients. It’s easy to use and helps you automate the process so you can focus on what’s most important—your business.
Tip #3 Think About Taxes
Work with your accountant to figure out whether you need to add sales tax to your invoices. Depending on the work you do and the state you do business in, your tax obligations will vary. If you neglect to charge your clients and customers for sales tax, it can be an expensive mistake come tax season.
We could go on all day with tips for invoicing. If you are curious if there are ways you could improve your invoicing process, let us know and fill out our get started page.