Getting paid on time should be easy, but for many businesses, the invoicing process often takes more time than it should – especially as they grow and take on more clients. Xero’s easy-to-use online invoicing software takes the pain out of the invoicing process and makes it easier for your customers to pay you faster. Here is a quick guide on how you can use Xero to create an invoicing process that is effortless and efficient.
To help things move faster, create an invoice template that includes the details that need to always be included on an invoice every time – rather than recreating your invoice each month. The details of a basic invoice include:
Xero has a range of invoice templates that you can edit or brand. Just include your payment terms and upload your logo and they are ready to use.
There are a variety of ways you can send your invoice. These days many businesses are choosing to send invoices via email. Email has advantages over the post. Not only will your invoice arrive faster, it can also be tracked. The most secure option is smart invoicing.
Smart invoicing means your invoices live securely online – you simply send your customer a link to their invoice. The Xero online invoices you send are protected from unauthorised changes – unlike a PDF invoice attached to an email. You can also increase security by enabling two-step authentication on your Xero account and on your own email account.
Chasing payments is the most difficult part of the entire invoicing process. Following up on late payments is not a job anyone enjoys. If an unpaid invoice goes past its due date, don’t wait too long before you chase the payment. Watch your accounts receivable – the list of invoices that aren’t paid – and chase the oldest invoices first. One of the easiest ways to chase payments is using online invoicing. Xero can send out automated invoice reminders for you. All you have to do is decide when and how often you want your customers to be reminded of their late payment.
The easier you make it for your customers to pay you, the faster you’ll get paid. You can choose for your customers to pay you in cash or by cheque – but these payment methods are falling away as they do mean a trip to the bank and cash payments are not ideal for large sums of money. Many companies accept Electronic Funds Transfers (EFT) payments from their customers, but the easiest, most error-free way is via online and ‘pay now’ services.
The ‘pay now’ option on your Xero online invoice lets your customers pay you instantly. The can pay straight from the invoice with a debit or credit card or from their PayPal or Stripe account. One in five businesses that use Xero to send invoices offer an online payment service and Xero research confirms that they get paid faster. In the United States, they’re paid up to 50 percent faster or about 20 days sooner than average*
Xero online invoicing automates the invoicing process, making it easier to keep track of the entire process because it’s all held securely online and the information in your accounts system updates automatically as you send invoices and receive payments. To experience the benefits of Xero’s invoicing software in your business, speak to our Xero Gold Partner team today.
*Xero invoices that were due and fully paid between July 2016 and January 2018