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Get paid faster with these 6 invoice tips

Posted 1 year ago in Small business by Ros Black
Posted by Ros Black

No one likes late payments from their customers. Late payments have a negative effect on cash flow. Chasing customers for payment takes valuable time. Prevention is better than cure when it comes to getting your invoices paid on time. Here are some tips to make your invoices highly likely to get paid quickly.

1. Email your invoices – do away with snail-mail

Almost everyone’s on email these days. Gone are the days when a formal piece of paper is the norm for invoices. Posting your invoices only delays payment — firstly there’s the time they take to reach your customers, second, there’s a high chance your customers will put your invoices in a drawer and forget about them. In Xero, you can email your invoices directly after you create them — just click ‘Email’.

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How to email an invoice

2. Be clear with your payment advice

In your payment advice, encourage your customers to pay you using a payment service such as Stripe, rather than by cheque.  Cheques take days to clear, can get lost in the mail and can bounce. If you prefer electronic payment — say this in your payment advice. In Xero, go to ‘Invoice Settings’ to set the payment advice that appears on all your invoices.

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How to add payment advice to your invoices

Make sure your customers can’t miss your payment advice — repeat it in the emails that go with your invoices. In Xero, go to ‘Email Settings’ to set up an email template that includes your payment advice. Setting up a template means all your emails will include your preferred payment options — you don’t need to retype them every time you email an invoice.

How to add payment advice to your email templates

3. Send online invoices – not just PDFs

Want to dramatically increase your chances of getting paid as soon as your customers receive your invoices? With online invoices your customers simply click on a link you send them, then click on a Pay Now button. Your customers don’t even have to think about when or how they’ll pay you — they’re likely to pay you immediately. In Xero, online invoicing is set up for you – we provide the online invoice link every time you email an invoice, all you have to do is attach your payment service.

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How to attach a payment service to your online invoices

4. Attach files to your invoices – don’t give your customers a reason to query your invoices

Give your customers all the information they need as soon as you invoice them. Otherwise, your customers might use lack of documentation as an excuse to delay payment. In Xero, you can attach files directly to your invoices — this is ideal for supplying your customers with details such as work schedules, contracts and product specs.

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How to attach files to your online invoices

5. Get your due date right

For the line of business you’re in, find out what’s common practice for due dates. If all your competitors ask for payment in 14 days, don’t be the business where it’s OK for your customers to pay you by the end of the following month. In Xero, set a default due date so you don’t have to think about it every time you enter an invoice.

How to set a default due date

6. Invoice as soon as possible

Finally, it goes without saying that the sooner you invoice, the sooner you get paid. Get into the habit of invoicing as soon as you complete work, rather than waiting until month-end. Xero has a mobile app, which means you can invoice from anywhere — so use otherwise wasted time, such as waiting in an airport lounge, to do some invoicing.

How to download the Xero mobile app

6 comments

Patrick
August 6, 2016 at 12.46 pm

What a great lesson that was? With this, I’m a step ahead now!

Robin
August 16, 2016 at 6.26 pm

Some great points in there Ros. Anything to increase cash flow helps. Xero users can also send invoices direct to their clients with add ons like Link4.

Peter
August 20, 2016 at 11.39 pm

The invoice app needs to be more user friendly and I’m constantly trying to invoice at point of sale but the time spent on the side of the road is to much to waste. Tried the app so many times but still outdated and using a mobile browser is so slow with xero I have to wait until the end of the day and after 12hrs the last thing I wish to do is an hr in the office when I get home.
Love xero but not for mobile applications.
Please get mobile invoicing up to speed
Thank you

Mike
September 11, 2016 at 2.54 pm

Offering an on time payment discount works wonders and is a standard feature in accounting programs. If only Xero offered it 🙁
They’ve at least promised it so hopefully soon. We and others have been waiting a long time.

Ros Black
October 25, 2016 at 8.22 am

Thanks for your feedback Peter, we’re sorry the app isn’t optimal for you. We’re constantly improving the Xero mobile app so hopefully it meets your needs in the near future.

Ros Black
October 25, 2016 at 8.24 am

Thanks for your feedback. Prompt payment discounts are something we plan to deliver in the future.

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