7 benefits of using invoices for your small business
If you run a small business, you know that your role is a lot more than just oversight. You have to wear a lot of hats, and payroll manager is probably one of them. That's where invoices come in.
You’ve read the beginners guide to invoicing and you’re planning to start issuing customers business invoices. But is there an easier way to accept remote payments? Will you need an invoice system? Is it just another layer of paperwork?
These are some of the questions you may be asking. Lucky for you, we're here to answer them.
In this article we’ll walk you through some of the ways that processing invoices can help your business.
1. Invoice processing is great for legal reasons
Legal matters aren't the most exciting topic, but it's important to talk a little about them. Although invoices are mostly issued as a better way to keep track of and receive customer payments, they also protect you in the event of a dispute.
While we hope this never happens, there may be times when a customer doesn't pay you even after multiple reminders. An invoice acts as legal proof that you had a financial agreement and can therefore be evidence if you decide to take the dispute further.
2. They keep customers happy
You may not think that invoicing is part of good customer service, but it is. Offering invoice payments enables your customers to pay you after you’ve issued a product or service.
This is convenient for you as well as regular and returning customers. Giving them the option to pay you when it suits them (within reason) is a great way to keep customers happy.
Secondly, invoice processing isn’t just for you. Customers also need to keep track of their finances. And having an invoice detailing what was purchased, when it was purchased, and if there are late fees can be very helpful.
It’s also a perfect way for a customer to avoid being overcharged keep everything on file.
Want to get paid remotely? Create and send professional invoices in under a minute from the SumUp App.Find out more
3. Keeping things professional
A professional invoice has more of an impact on customer experience then you realise. When you issue a customer an invoice, you’re showing them that your small business runs on efficient processes. That kind of thing helps them trust you.
A professional invoice containing all the necessary information on a well-designed template also helps you stand out from competitors. This is something many business owners may forget, but an invoice is a touchpoint with a customer, which means it's an opportunity for you to offer a top-notch experience. Their customer journey with you should be flawless from start to finish.
4. Showcasing your brand
Invoices are a great place to show off your branding. The design and tone of voice that you use should reflect how you want your business to be perceived.
Make sure you’re using a template people will want to look at. Think about things like:
What the layout will be
What typography you use
Having your logo on there
5. They keep you organised
This seems obvious, but keeping an organised record of the invoices you send out is key. It’ll help you keep an eye on all your payments, pending or otherwise, so you know where you stand financially.
6. It helps you to get paid on time
There are a few reasons invoices help a business to get paid faster. A well-written invoice will have the following information:
An invoice number and date of issue
Your company name and address
Your company contact details
Details of the product or service
The amount due
Payment information including how to pay
An overdue fee
If the customer has all of that, they have everything they need to pay you. A due date will help to apply some pressure if needed, and if you add an overdue fee to your invoice, this could help even more.
Your customers will sometimes have questions, and by having all of your contact information readily available as well as an overview of what they need to pay, you’re helping them and you.
Finally, if you choose to use an online invoicing solution or an automated invoice processing system, you’ll be able to issue payment reminders at the push of a button.
7. Things have gotten easier with invoice systems for small businesses
Luckily, companies have recognised the importance of automated invoice processing and as a result, we’ve seen an increasing number of online and in-app invoicing solutions. This means that business owners can send invoices to customers in seconds.
Invoicing solutions can help you create simple and error-free invoices fast. Even better, with automation, you only have to make a template and change the amount due each time. All from your phone or laptop.
This is also an easier way to store and keep track of your invoices without stacks of paperwork or filing cabinets. If you’re looking for a simple solution, SumUp Invoices are free, efficient, and fast.
Are you a small business looking for tips and tricks on how to make the day-to-day a bit easier? We’re here to help. For more articles, check out the SumUp Blog.