Invoicing Software: 7 Tips to Get Paid Faster

Have you ever wondered why businesses struggle with cash flow? Yes, there is debt repayment, salary payment, and procurement. There is no doubt about it, but one of the prominent reasons is unpaid invoices. In this blog, we will discuss strategies to get paid earlier to prevent cash flow crunch conditions with the help of invoicing software. For instance, a company managed to reduce their average payment time from 60 days to 30 days by implementing these strategies.  

How to Get Paid Faster

If you are facing late payment issues, then you should read the following tips to get faster: 

1. Use Professional Template 

There are hundreds of invoicing templates available online in different formats and colors. Choose a template that is simple, appealing, simple to read and clutter-free. 

Before choosing any invoice template, make sure it fulfills the following criteria: 

• Easy to edit
• Clear and legible fonts 
• Shows invoice clearly 
• Have a separate column for expressing the GST percentage 
• Confirms to GST Invoice format
• Can incorporate your company logo 
• Have dedicated space for mentioning payment terms and conditions

2. Use Polite Tone 

If you deliver an invoice via WhatsApp or email, ensure it is accompanied by greetings or something well-wished for their business (if the transaction is B2B). Use words like ‘Please’ and ‘Thank you’ on the invoice or wherever possible. 

Your voice should not be harsh even if you call for a payment reminder. If you can maintain this, your relationship with your client will be stronger, and you are more likely to have repeat business. 

3. Seek Payment in Advance 

Requesting payment in advance for a long-term project or colossal consignment is a smart move. A deposit on hand before starting a project can be used to acquire raw materials. This is how you can maintain a steady cash flow to satisfy your business needs. Without a steady cash flow, your business may struggle to pay its bills, meet payroll, or invest in growth opportunities. 

4. Offer Multiple Payment Methods 

In today’s world, everything is done online; even invoices are sent online, so it is obvious that you should offer multiple online payment options if you want to get paid within the given time. Though UPI is a widely accepted payment method in India, you should also have other payment options like credit cards, debit cards, internet banking, and cheques. 

5. Incentivize Early Payments

By offering discounts on early payments, you not only avoid a cash flow crunch but also encourage your customers to pay promptly. This ensures a smooth financial operation for your business and motivates your customers to adopt the habit of early payments. 

This tactic can be proven effective against losing a small invoice amount. However, it is better than experiencing a cash flow crunch. You can also offer the option of EMI (Equated Monthly Installment), which allows your customer to pay for a purchase over an extended period, making it easier for them to manage their cash flow and pay on time. 

6. Send Payment Reminders 

Sending payment reminders is one of the most conventional strategies for preventing late payments. People who manage business and personal life often forget to pay. A friendly and polite reminder will sort things out. The best time to send a reminder is a few days before the due date. 

However, it should be done sensibly; doing something other than doing it may lead to frustration, and you will lose repeat business. In a world where technology is dominated, there are multiple ways to nudge your customer passively so that it does not harm your relationship. 

Modern accounting software includes features to send automatic reminders, which can save a lot of time. Also, by fetching accounts payable reports,, you can view your customers’ unpaid amounts without keeping track of them individually. 

7. Build Rapport 

Building rapport with your customers is crucial to ensuring timely payments. You can foster a positive relationship by delivering quality work within deadlines and prioritizing client satisfaction. This encourages timely payments and leads to long-term relationships, repeat business, and referrals. 

Why Should You Invest in Invoicing Software 

Due to the following reasons, you should consider investing in Invoicing Software: 

• Create a professional invoice in a snap 
• Track unpaid invoices 
• Keep track of cash flow closely 
• Modern invoicing software offers features that automatically send reminders to customers 
• Comes with a read-recipient feature so that you can know that the customer has read your invoice 
• Automate billing process  

Over to You 

So, after reading this article on strategies to get paid faster, we hope you will implement some of the tactics discussed in this blog and experience early and swift payment from your customers. 

If you are looking for invoicing software with the capabilities of accounting software, Munim is a great option. It allows you to create professional invoices, track unpaid invoices, manage your cash flow, and even automate your billing process.

Frequently Asked Questions on Invoicing Software 

1. Is Excel good for invoicing?

Yes, Microsoft Excel is good for invoicing; businesses choose it because it is easy to use. But here, we have full-fledged accounting software that can generate GST-compliant invoices.

2. What happens if MSME fails to make payment within 45 days? 

Being registered as an MSME, if your company fails to make payment within 45 days, then the company will lose the benefit of deducting that expense from taxable income. 

3. How can invoicing software resolve late payment issues? 

Rest assured, modern invoicing software comes with several features that are designed to help you resolve late payment issues effectively. From automated reminders to clear tracking of unpaid invoices, the software is your trusted ally in maintaining a healthy cash flow.