One of the most important aspects of your business is accounts receivable. It’s what controls the cash flow of your business.
Small business owners struggle with this because 48% of all invoices get paid late. That causes cash flow problems for about 20% of small businesses.
Small business owners don’t have systems in place for invoicing. That’s where an invoice template generator can help. Read on to learn why you should use an invoice template generator and how you can get paid on time.
Why Use an Invoice Template Generator?
An invoice template saves time. If you use a spreadsheet to create invoices, you have to create the invoice from scratch. You have to recreate the wheel every time you bill customers.
An invoice generator also reduces the number of errors. You might copy an old invoice and use that as a template. The problem with that is that if you don’t proofread the invoice, you could send old information to your customer.
Worse yet, you could end up sending another client’s information to a customer. That’s an embarrassing situation that people will remember.
Use an invoice template and you instantly boost your professionalism and credibility. An invoice created with spreadsheet software looks plain, even if you’re able to put your logo on it.
An invoice generator application lets you create a polished invoice without having to master graphic design.
How to Create an Invoice Template
It’s very easy to create an invoice using an invoice generator. Pick an invoice generator application and choose an invoice design template to start with.
Customize the invoice by using your brand colors and adding your logo. Some invoice generators let you create your own design.
Get your client’s information together. You’ll need their address, account number, invoice number, services provided, and the amount.
You’ll also calculate any sales taxes and add that to the invoice. Most importantly, you need to tell them how to pay you and the payment due date.
Download the invoice as a PDF, JPG, or another file type. Send it off to the client and receive your payments on time.
It’s important to have a system in place to remind clients when payments are due. For example, you can schedule a payment reminder email five days before payment is due.
A system to follow up with clients a few days after the payment due date keeps you on top of your accounts receivable and improves your cash flow as well.
Get Paid on Time
It’s critical for your small business to get paid on time. Small business owners need to have an invoicing system in place to invoice regularly and get paid.
An invoice template generator is the beginning of your system. It creates a branded invoice that gives the appearance of a bill that needs to get paid immediately.
It reduces errors and makes your business look professional. Once you design your invoice template, you have a simple way to create and send invoices. Just make sure you have a follow-up process for clients, too.
For more helpful insights, be sure to check out the other business articles on the blog today!