Cash Flow is truly the lifeblood of any small business so it’s important to always look at means to improve Cash Flow.
An invoice, sometimes called a sales invoice, is a bill sent by a provider of a product or service to the purchase. The invoice stablishes an obligation on the part of the purchaser to pay. In other words, the invoice is a written verification of the agreement between the buyer and seller of the goods or services.
Invoices are an important part of your business’s bookkeeping and accounting recordkeeping system because they record sales transactions.
Invoice promptly. Make sure you send a correctly formatted invoice at the time your customer purchase when the job in completed.
- Date that the invoice is created. The date of the invoice starts the clock ticking on the customer.
- Name and address of customer. ABN, Phone number, email address so to email out the invoice when it is completed (never send by slow mail). Include the physical address and or delivery address. It’s always good customer relations rule to make sure you spell names correctly.
- Description of items or services provided. Be as specific and detailed as possible, when you create the invoice. This avoid confusion and “I didn’t know” issues.
- Terms of payment. Payment due date: (be very specific)
Look at an app. Xero has a mobile app where you can invoice on the spot and get paid via Credit Card on the spot.
Don’t manage from the Bank Balance. The bank balance and the cash balance are two different forms of cash. Rarely will the two ever be the same. Don’t make the mistake of confusing them. It’s futile and frustrating to attempt to manage your cash flow using the bank balance. It’s a prescription for failure. You reconcile your bank balance. You don’t manage from it
Reference: The balance
As Cash Flow Strategist and professional bookkeepers Accountant Ready Books can assist with identifying your cash flow problems. Once detected we can then implement cash flow strategies to defeat cash flow crisis helping to grow your business with solid cash flow management.
Call us today 1300729311 your local Bookkeeper Gold Coast
