Invoicing is one of those business competencies that seems simple and intuitive at first—until you actually start to do it. Many aspiring entrepreneurs hardly give it a thought, perhaps making it one of their lowest priorities when launching the business. When it actually comes time to provide clients with their bill, however, and to manage your invoices and other payment records, you begin to realize how challenging the work can be.
The issue is not one of the complexity. For most small business owners and freelancers, it’s easy enough to find your way around simple invoices, to get your bearings, and wrap your head around the fundamentals. The challenges tend to lie in the level of time and commitment required to invoice efficiently—requirements that all but mandate the implementation of a seamless invoicing system. (But more on that later.)
Common Issues Associated with Invoicing
Specifically, some of the biggest invoicing problems that small business owners face include:
- Simply finding the time to create and send invoices. Even when you’ve got invoicing down to a science, it does take a few minutes of your time to prepare and send one, and then another few minutes to organize payments, receipts, and overdue files later on. Invoicing requires continuous management, which means it requires a good deal of your time—time that, for most small business owners, is hard to come by.
- Following up on invoices that are past due. How do you know when you have an invoice that has passed its due date without any receipt of payment? Again, this comes down to time and organization, and to implementing some kind of system to help you keep up with outstanding invoices.
- Dealing with multiple payments. Repeat clients may offer payment for different services at different times—so how do you know which invoices have been paid and which have not? Account reconciliation is necessary, but it can get complicated.
- Invoicing consistently and accurately. An erroneous invoice can yield customer complaints, refund requests, and all manner of headaches; for on-the-go business owners, the temptation can be to invoice as quickly as possible, yet it is imperative to not get sloppy.
- Ensuring invoices are noticed and taken seriously. You don’t want your invoice to go to the very bottom of someone’s to-be-paid pile—but how can you ensure that your invoice commands attention?
Solutions to all of these problems are available, of course, and with BizXpert, they’re available in the same place—a seamless suite of tools to automate online invoicing and allow you to manage your records in a matter of seconds. Sign up today for free, and sidestep some of these prickly invoicing issues!