August 21, 2019

4 Steps to a Perfect Customer Invoicing Process

Naveen Shayan

LedgerMax specialist

In order to request payment for your products or services, you send an invoice which is usually sent after the required product is delivered or the service is provided. Thus, a clear and coherent invoicing policy aids in simplifying administration and running the cash flow system efficiently.Following are the four steps to a perfect customer invoicing process:

1. Purchase Orders

When someone orders your products or goods, they make a purchase order also known as a PO. This purchase order can be placed through mail, email, fax or phone; however, irrespective of the size or method of the order, you must have a written track record that includes relevant information. For instance, the PO may contain the buyer's contact details, billing and shipping addresses, quantity of the required item, item number, description, cost per unit, delivery date and total cost etc. This purchase order must also be dated and signed by the buyer. It is very important to clarify the discrepancies (if any) with the buyer before order processing.

2. Order Receipts

The next step is to check if the buyer has received the order by monitoring delivery papers as well as order tracking numbers. After getting order receipt confirmation, you are required to send invoice to your buyer. However, in case you're selling services, the invoice should be sent after performing the required service.

3. Invoicing Process

The third most important step is to create an invoice. Even if you're a small business owner it is better to use an accounting software to create invoices instead of making them manually. Accounting software like LedgerMax allows you to generate the most organized, accurate and professional invoices. This not only saves you lot of time but also gives you the freedom to create, edit and send invoices from your desktop, mobile or tablet conveniently. The invoices you send to the buyer should include all particulars regarding the order. The buyer can return the invoice along with the payment or can simply refer to the invoice number at the time of payment.

4. Late Payments

To operate your business in an effective and flowing manner, it is essential to formulate a policy for late payments and send it to your clients. This will inform them about the consequences of non-payment or late payments. Accounting software like LedgerMax allows you to keep track of your payments against pending bills as well. Hence, try to be flexible when dealing with overdue invoices, give grace period to your customers if they�۪re just a day or two late. Send reminders to the customers regarding late payments.Thus, these 4 steps can definitely help you improve your customer invoicing process and slash your workload while setting you on the track to business development and progress.

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