Your business can’t afford to have a disorganized approach to invoicing. You’ll have to deal with late payments and mistakes that could cost you customers. Instead, it’s important to create a consistent invoicing SOP (Standard Operating Procedure) so you can use your time more efficiently and present yourself more professionally.
You don’t need to overhaul your entire way of doing business. But you do need to streamline your payment management. Stay with us as we walk you through the steps necessary to standardize your invoicing SOP in seven days.
Evaluate Your Existing Plan
Before launching a new approach to invoicing, look at your existing process. That way, you can find holes and missteps to correct as you develop a new strategy.
Which team members are responsible for initiating invoices? And how are they gathering the necessary details to input into the form? These are the types of questions to consider as you’re getting started.
You’ll also want to check if another set of eyes reviews the invoices before they are delivered to a customer. Are you using software to generate invoices, and are you delivering them electronically? Make sure you’ve mapped out the pathway from invoice generation to follow-up outreach.
Along the way, you’ll inevitably discover some issues with your current process. Jot down the recurring errors. Those mistakes may be causing ongoing headaches with anything from sales to customer reviews.
Maybe invoices are not numbered consistently, which can create confusion. Or maybe there are typos or omissions on the form that look unprofessional. Worse yet, you may be late sending out invoices or dealing with complaints from customers.
While it may not be easy to own these problems, it’s smart to be as honest as possible. You’ll be able to find glaring and even small errors to fix first. After all, even the best business plan won’t lead to success if you’re dealing with too many internal issues.
Determine Essential Invoice Information
What should be included on your invoice template? You’ll want to be consistent from one invoice to the next. Doing so will help you stay organized so you can track down invoices easily, if needed.
Details like your business contact information and that of the customer should be there. Likewise, you’ll want a clear description of the services provided and an itemized cost tabulation. The final amount due should reflect all services plus any taxes.
Include an obvious due date so there isn’t any confusion. Provide a link to a payment site or instructions for submitting a check. And make sure to assign each invoice a unique number so you can keep track of everything.
Lastly, embed a logo for your business to help build brand recognition. This can sit toward the top or bottom of the document. Keep the layout clean and clear to avoid confusion when you submit it.
Keep a Consistent Format
When it comes to improving your invoicing SOP, you can’t go wrong with a standard invoice format. Using a standard document ensures consistency and can help minimize confusion among your team members. Further, customers will start to associate your invoice with your brand when they receive the same document for each service.
If you’re not a designer, don’t worry. using contractor invoice templates and other premade layouts can save you from needing to tackle invoice formatting alone. You can tailor the fields and formatting to create a template that suits your needs.
After you’ve selected a template, make sure your entire team is aware. Save it in multiple places so it’s easy to access. And remove any other invoice templates so no one is tempted to use anything other than the official one.
Use Automation for Follow-Up Communication
Typing specific follow-up emails or leaving voicemails can take up too much time. Turning to automation can speed up this process and free your team members to take on other tasks. You’ll also help standardize processes when you automate all communication.
Start with your invoices. Send them at an automatic point after a service is complete. Then automate reminders about payments. You can stagger them so they reach your customer a few days before the due date, and then afterward if the payment is not submitted.
If you’re assigning late fees, automation can track these when payments are missed. You can ensure your accounting team is notified, as well.
Thanks to automation, you won’t see any customers or payments fall through the cracks. You’ll be able to maintain consistent and persistent communication. And you can help limit the number of late payments by sending regular reminders.
Improve Your Invoicing Process
When you standardize your invoicing SOP, you can build a more professional business presence. Start by reviewing your current process and making critical changes. Determine your invoice fields and use a template to maintain consistency.
Embrace automation and keep the lines of communication open. You’ll end up with more structure in your invoicing process and a stronger business.
