This will sound ridiculous to a number of you. Most will think this is crazy. But some of you need this as a wake-up call. Invoice your customers.
One of the simplest ways to increase your cashflow is to invoice your customers on time. On time is whenever the subscription period, delivery, or other agreed terms of payment are met. It´s as simple as it sounds — invoice your customers.
I once worked with a company that was habitually late invoicing their clients. They are a good company, provide a great service, and are thoughtful people. They just can´t get invoices out to customers to save their life. They´re not alone. And the effects on their business are troubling — late payments to creditors, difficult vendor conversations, late fees, etc. All unnecessary.
Invoicing to some is like filing taxes, it seems like a chore. Usually it´s because there is no system in place or tools are lacking to gather required information and generate an invoice. Procrastination is the case for many.
Whatever the reason, there is nothing more frustrating than running out of money. Juggling accounts payable or negotiating payments to creditors is business as usual when you have unpaid customer invoices – unpaid because they were never received and not received because they were never sent.
So, do yourself and your business a favor, invoice customers on time. If you don´t have an easy way to invoice customers, get one. Your business and success depend on it.