Sending invoices on different timings can bring you different reviews from the clients which tells you a lot about the repo you have built through that. It’s time to learn the suitable timings for different kinds of invoices and how to get your work done like a professional with the help of accounts receivable automation software. When it comes to sending the invoices, what do you generally prefer? Sending it immediately or at the end of the month and did you ever evaluated the consequences of invoice sending timings?
No matter what your profession is, whether you are a designer content-writer or have any such small-scale business of your own, the chances are you might be confused about the right timings of it. What is the right timing? Is sending it before you start the work is perfect or choosing specific days in the week? To answer your question, the answer is there are no such fix timings to do so and it depends upon your work. Let’s dive into the factors and scenarios involved in sending invoices and how accounts receivable collection tools can help you determine the right time for you.
1. SENDING INVOICE BEFORE STARTING THE WORK
If you chose to prefer sending invoices before getting involved with the work, it will give you the advantage of an upfront deposit. Let’s take a closer look at its other benefits:
- Enhanced Protection and Security- sending the invoice in advance will save you from the worst-case scenarios of waiting for the payment after the completion of the work. Upfront deposits will make the clients do the payment on time and saves you from those who were just looking for free benefits of your services.
What is a better scenario? Client doing the full payment after they have paid you the required deposit or client paying you the full amount after they have denied sending the deposits?
- Improved Client Relationships- when you are working in any such profession where you are dealing with clients daily, it is important to maintain a healthy relationship with them. Make improvements in your work based on their inputs, feedbacks and guidance. This will help you in reaching out to them and get their response regarding the work and carrying out a successful project. Such scenarios are only possible where the clients they have already invested his money which you can keep a track of through accounts receivable management software.
- Better Cash Flow- working on a project often required unplanned financial help or for paying the subcontracted agency. The upfront deposits done by the clients will come handy and prevent the project from collapsing. Although the upfront deposit idea before starting the work sounds good it may not work with every client or project and sometimes it only works with the clients you have better professional relationships who can pay you that and often have such agreements where the payment can be postponed from few weeks to months. Speaking of which…
2. SENDING INVOICE AFTER THE COMPLETION OF THE PROJECT
This is the most preferred ways of sending the invoice where the completion of projects has quick turnaround times without putting a strain on the cash-flow. This works even when well if you are maintaining a healthy professional relationship with your clients and they are trustworthy with their payment process.
Sending the invoice just after completing the work keeps it freshly on the client’s priority list and they will pay immediately without getting it lost under their pile of work. A good way to generate on-time invoices is with the help of accounts receivable process automation.
It also gives the impression to the new clients that you are not doing free work and there is a fee attached with the work you provide and the service or product you will provide is worth the money and it is your right to get paid for it.
However, there is a downside attached to this as well. When you send the invoice right along with the completed project and the client found out some changes or additions to be made, your invoice may seem like a desperate attempt to get the money for an incomplete project, putting you in a negative impression and next time he may hesitate to approach you with another project.
3. WAITING AND DECIDING WHEN TO SEND INVOICE
If you are likely to wait for sometime to send an invoice after you have sent the completed project, then it will make your impression looks more professional and the client will appreciate your approach of not being a money-hungry individual.
This approach of yours could either be your own choice or because of the instructions are given by the clients and you don’t want to breach that and ruin the relationship. You can keep the track of all the pending or completed payments accounts payable which will help in making the plans accordingly.