PUBLISHED FRIDAY AUGUST 13, 2021
How do you keep track of invoices and payments?
Not everyone is a natural-born organizer. But running a business requires that you are organized and meticulous in handling your paperwork.
Organized businesses are often the most productive. However, handling paperwork can take a lot of time. Balancing receivables or payables can cause a lot of headaches! This is why invoices are pretty important for small businesses.
With more people booking sessions online to participate in activities from their home, life seems to be looking good for yoga studios, dance studios, and other related small businesses. Being able to keep track of invoices and payments is crucial to your success as a business.
5 Practical Steps for Keeping Track of Invoices and Payments
1. Avoid procrastination
It is tempting to put off your invoicing for just one more day; until ‘one more day’ becomes a whole month. You should embrace the act of regular invoicing and stick to it! You can set aside a designated time in your day or week to carry out your invoicing tasks. Do what you have to do now before it becomes a mountain task!
2. Use an Effective Accounting Software
If you want to achieve an efficient invoicing process, you should consider introducing accounting software to your business. There are several factors that you must consider while considering an accounting system. Before going for accounting software, ask yourself these following questions:
Is the accounting software cloud-based?
Does it allow for multiple users?
How user-friendly is the interface?
How secure is my business data?
Is it a cost-effective software?
You should satisfy all of these questions before making a choice.
3. Automate Invoicing
Automating your invoicing procedure is central to having a good hang of your business finance. It makes the process efficient while allowing you to focus on what you know how to do best - the actual service you render to your customers. Aside from the fact that it is highly prone to error, manual invoicing costs a lot more at the end of the day.
When you automate your invoicing process, it makes it a lot easier to keep track of your revenue and offer a whole lot of other data that you can use to make decisions. If you use a scheduling software with an integrated invoicing system, for example, it becomes easier to know which of your services are being paid for the most.
Most importantly, you can avoid a cash crunch that results from defaulted and delayed payments. You don’t have to chase anyone to pay an invoice as you can also send automated reminders through most invoicing systems.
4. Run Regular Reports To Stay up-to-date with your Bookkeeping
One of the most effective ways you can track your invoices and payments is simply to regularly take a look at your overall financial report. You can get this done by hiring an experienced accountant to take up this task.
However, for a boutique business like yours without large inventory, you can get it done faster and cheaper when you use a booking system like OClass, with an integrated expense and invoice tracking feature that regularly generates reports for you. This way, you can accurately and efficiently keep records of your finances and avoid surprises.