Invoicing tips for small businesses
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Invoicing tips for small businesses in South Africa
You want lots of cash coming into your business. Then, you have to be great at invoicing your customers. Although invoicing can be a hassle, it doesn’t have to be. You can get your invoices set up properly and make them easier to send out.
You’ll forget about all the admin when the cash flows into your bank account. Read on for first-hand advice and everything else you need to know about invoicing.
We had a chat with a small business owner, Jen, who owns Cyrus Farms Health Store. Jen shared her thoughts on popular questions about invoicing in South Africa.
What is the best way to do customer invoicing?
“It would be something that is already set up so that you don't physically have to try and remember like either a bookkeeping company or an invoicing app, which sort of stays on track with regards to inventory as well. So if people are starting up small, a little invoice book from CNA is absolutely perfect.”
What are the steps to invoicing?
“First, you might need a purchase order. Then you can invoice as per whatever they've ordered and paid for too.”
What are the features that should be on an invoice?
“The phrase “Tax Invoice” needs to be on an invoice. Your business information needs to be on the invoice. The relevant product or service sold needs to be described on the invoice as well as the quantity sold.
“In some cases, if there's a reference number like a quote number or a PO number that needs to be on the invoice.
“A person's address and if there is that number they kind of thing that also needs to be on if not then the rest information.
“There might be other things that need to be added. For example, if it is a company you are invoicing, make sure that their information is on the invoice, like the company’s address, contact details and possibly a VAT number. If the company is a VAT vendor, then the price before VAT, VAT amount and the total amount should be on the invoice.
“If in doubt, ask your friends, family or other people in your industry. Lastly, ask your client to be 100% sure if needed. Rather ask, instead of redoing an invoice later and delay your payment even longer.”
What shouldn't you do when invoicing customers?
"If your handwriting is not fabulous, I would rather just have it printed and make sure that the spelling isn’t wrong because it looks very unprofessional for spelling errors."
How useful would it be to speed up your invoicing?
“It would be very useful because invoicing can take a lot of time. So for example, I don't sit and do invoices. I don't have time to sit and invoice out individually. It takes up too much time.”
It was great to talk with Jen. She gave us valuable tips about invoicing. Do you still want to know more?
Learn more invoicing tips
Is invoicing boring? Invoicing requires much paperwork and planning. Follow the following tips for more efficient invoicing.
Who needs to get the invoice?
Make sure you have the contact details of the finance guy who will receive your invoice. Your invoice should go directly to the accountant in charge of payments and not via many office personnel. In this way, you’ll avoid delays or even lost invoices.
Good record-keeping is important
This is necessary for a business to be successful. If you charge per hour, you need to prove your time spent on a certain task. Whatever you need to measure, such as an inventory, stay on top of your record keeping. Even if a client doesn’t need detailed records, it’s still good business practice to be fussy about maintaining records.
Then, if a client ever questions your invoice, you’ll have the necessary data available.
Download our free Yoco app from Google Playstore, manage sales, and track your performance. You can create sales and see your transaction history.
What info do you keep as records?
Records cover contracts and anything else you would need later. Careful filing of all your paperwork will ensure you can quickly obtain something a client wants. It also means it is more difficult to overlook a deadline or contract.
Some clients want to see more
If you have to itemise everything on your invoice, make it easy for a client to read and understand. You don’t want your client to question you about many items, delaying your payment.
Make invoicing faster and easier
Imagine not having to stress about the next invoice date? Even if invoices do change each month, you can still speed things up by making a template that changes slightly for each invoice. In addition, an invoicing app or program can send out reminders automatically to those who haven’t paid yet.
You can send unlimited professional-looking invoices to customers for free with Yoco Invoices. This invoicing solution is easy to use and will help you quickly get your invoices out to customers.
You could charge late payment fees
You can remind clients of the importance of paying on time when they receive late payment fees. You don’t want to upset your clients, so discuss with them ahead of time what the invoicing procedure is all about.