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Feeling the pinch from late payments? Late payments can cripple a small business. Having a steady stream of cash flow means your business can continue to fund its operations. If your invoices aren’t serving you well, the resulting cash flow gaps can literally spell doom and gloom. By implementing the right invoicing processes, you not only mitigate any cash flow concerns — but you can also secure greater customer loyalty.
Invoice necessities
With modern payment platforms, you can revolutionize your invoicing process. Easily create and send professional invoices from anywhere, track payment status in real time, and even set up automatic payment reminders to minimize late payments. What’s more, online invoicing enables secure online payments, offering added convenience for both you and your customers.
With Forwardly, you can directly import invoices from your accounting software and accept payments online within 60 seconds. You can also set up automated payments effortlessly. Plus, Forwardly simplifies financial management, ensuring hassle-free receipts by syncing with your accounting software.
Now, let’s look at what makes up the meat of the invoice — the necessities that your customer needs to know who sent the invoice and why. This includes:
- The name of your business and your logo.
- Your contact information — business name, address and contact information.
- The recipient’s name, address and contact information.
- The product(s) or service(s) for which the invoice was issued, along with prices.
- Invoice payment terms and conditions, payment deadlines and invoice creation date.
Now that the necessities have been covered, we’re not stopping there — that was the vanilla invoice. We’re here to elevate your invoicing and have every invoice you send generate a whole lot of additional benefits with minimal effort.
Three ways to tap into the marketing potential of your invoices
Many businesses, regardless of their size, underestimate the power that invoices possess. They’re often seen merely as receipts — yet they have powerful marketing potential that often goes unnoticed. Let’s face it, the people you do business with will encounter invoices that are produced and delivered by you. Leverage these nifty little sheets to secure consumer fidelity and even help attract new faces.
Take some time to revisit your invoices — assess the layout, format, and overall look of invoices being sent out to your customers.
Add incentives
Don’t be basic with your invoice creation process and don’t be afraid to drop a few irresistible incentives on the sheet. What do we mean by incentives? Well, what would encourage you to do business again? Discount codes sound pretty enticing to us. What about referral codes to share with friends? Heck yes! Include them too, now your client has a reason to mention you to their friends and family — aside from your splendid quality and customer service of course. Having discount codes and referral options accompany an invoice is a surefire way to get customers coming back to you with friends in tow.
Promote new products
Now let’s assume you’re developing a new product. Guess what? You can promote it through your invoice too. The beautiful thing about an invoice is that people value them and inspect them carefully. All eyes are glued to the invoice, so why not take advantage of all the attention it manages to garner? Include a message or a notification within your invoice informing people of a new product launch or a sneak peek into future product development. Get your customers excited about the future and any new offerings you will have in store for them. This too can go hand-in-hand with the aforementioned promotional codes that may be included in the invoice.
Encourage feedback
Use your invoice as a means to encourage customers to give you feedback. This is a great way to further improve your business model and product for any future purchases, thus elevating the perception of your brand and developing social proof.
Keep in mind that customers are the reason for your existence, if it weren’t for them, you wouldn’t be here. Continue to improve the customer experience through a scrupulous feedback-gathering process, which can be improved through the use of invoices. Include a contact number or a website URL in your invoice that customers can use to share their feedback.
Invoicing and cash flow
Being able to effectively forecast your future financial situation is critical for any business. This information guides marketing or product development budgets, how you will proceed with expansion and let’s not forget your investors who may be looking to assess your future prospects.
By staying on top of your invoicing process and keeping things organized, you’ll gather valuable insights for building accurate cash flow forecasts. When your invoicing terms are well-aligned and your collections process runs smoothly, you’ll see an improved turnover ratio. Conversely, if your terms aren’t favorable, cash flow forecasting can pinpoint the problem areas. Forwardly provides free cash flow forecasting tailored for small businesses, empowering you to make informed financial decisions and keep your business on track.
Don’t forget about your payables—those vendors and suppliers you owe. Meeting these obligations on time is crucial. Check your accounts receivable to ensure your expected cash flow covers your upcoming bills. With Forwardly, paying bills is easy. In just 60 seconds, and at no cost, you can settle your bills hassle-free. This means you can hold onto your money longer and pay bills right on the deadline without worrying about missed payments.
Wrapping it up
Invoices are not merely transactional documents; they are powerful tools that can improve customer loyalty, promote new products, and facilitate valuable feedback. By optimizing your invoicing process and leveraging modern platforms like Forwardly, you can streamline operations, improve cash flow, and elevate your business’s professionalism. Remember, every invoice sent is an opportunity to strengthen relationships with customers and drive business growth.
And guess what? Forwardly is totally free to start with—no subscription needed. So why wait? Give it a try and watch your business grow!
