Every organization needs a continuous flow of cash to carry out daily business operations. Without a healthy cash flow, the business may suffer a lot. A delay in the payments can cause troubles to your business. For a healthy cash-flow, you must ensure that all the clients or customers are paying on time. For this, you need to upgrade the old methods of collecting payments and invest in some new tools. There are many applications like troveworks accounts payable receivable software is one such tool that can automate the invoicing process. This helps to manage invoices easily and ensure smooth operations.
There are a few questions that should be clear in your mind. What is your preference for invoice sending? Sending the invoice right after the work has started or at the end of the month once the payment time usually arrives? Do you bring variations in sending the invoices based upon the current situations? Regardless of the industry or profession, you are a part of, or the business you own rather big or small, the chances are the timing of sending invoices decides a lot regarding the time and methods you will receive it back as well.
What is the right timing? Is sending the invoice pre-work is ok or you have some superstition going around for that? It’s is essential to master the timings and bring stability to your cash flow as well. Let’s dive into the factors and scenarios involved in sending invoices and how the available free collection database software can help you determine the right time for you.
1. Parallel ways at the commencement of the assigned project
The first case involved sending invoices and getting the clearance even before the work has proceeded. Here you have the advantage of being advance with time and work. Let’s know more about the included benefits:
- Sharpening the protection and security measures: Sending the invoice in advance will save you from the worst-case scenarios of waiting for the payment after the completion of the work. Upfront deposits will provide you with the facility of receiving the payment as per your schedule and you can filter out those who are in a constant race of receiving services without paying. Think about depositing the entire amount once the initial deposit was made or the client depositing the entire amount after the initial denial of partial payment?
- Happy client, good relationship: When you are working in any such profession where you are dealing with clients daily, it is important to maintain a healthy relationship with them. Make improvements in your work based on their inputs, feedbacks, and guidance. By doing so, you are gaining an upper hand and have easy access to reach them regarding the work. This will also make sure that your project is delivered as per the expectations. Such scenarios are only possible where the clients have already invested their money which you can keep a track of through free accounting software.
- Improvement with the cash flow: Working on a project often required unplanned financial help or for paying the subcontracted agency. The upfront deposits done by the clients will come in handy and prevent the project from collapsing. In practicality, the upfront deposit idea looks seamless but you have to steer clear of those clients who are genuine but do not wish to cooperate with you under this term. And sometimes you have to bring in new changes as well where the payment can be postponed from few weeks to months. Speaking of which…
2. Putting it forward after the assigned project hits end stone
This is the most preferred way of sending the invoice where the completion of projects has quick turnaround times without putting a strain on the cash-flow. This is feasible even for the situation of building a strong professional relationship. Your clients are your business and bridging the trust with the payment process.
Sending the invoice once the project comes to the end and you are delivered with the product? In this case, the client will be aware of the urgency of the payment and it won’t be overlooked upon in any circumstances. Free collection software provides an ideal way to have the invoice generation on time.
It also gives the impression to the new clients that you are not doing free work. There is a fee attached with the work you provide and it is your right to get paid for it.
However, there is a downside attached to this as well. Sending the invoice in parallel with work can be counted as money desperate action. Reason? What if he wants to consider a change but the invoice is stopping him? Having an incomplete project and demanding the fees builds negatively on your ratings and further approaches.
3. Bringing variations with the timing of invoice sending
If your schedules demand waiting before the invoice is sent, then the best time is after the completion of the project since making an early move can disturb a lot of things. The reason is that will make a good healthy impression and you will have more projects further.
This move is the result of you or the instruction given through clients. Make sure you are not breaching the same to maintain a healthy professional relationship. You can keep the track of all the pending or completed payments through receivables management software which will help in making the plans accordingly. You can learn more at Troveworks.
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