Did you know that businesses spend up to $21 on invoice processing?
The time and money spent tracking invoices can affect your bottom line. Unfortunately, few business owners think about these costs, especially when starting their businesses.
Odds are, you, too, learned about invoice-related costs after starting your business. As you’ve most likely already realized, you can’t ignore them. After all, you need invoices to run your business.
But, you can reduce invoice-associated time and money costs. Curious how? Read on as we delve into tips for streamlining invoice payments.
Let’s get started!
Set Clear Invoice Processing Procedures
The first step to streamlining invoice payments is ensuring everyone is on the same page. That means setting up meetings with your vendors to discuss your invoicing expectations. Most vendors can adapt to meet your needs if you make them clear.
Ensure you agree on a uniform method of invoicing. You can’t have one vendor send an invoice through email and others by mail. That’ll make invoice tracking challenging for you.
Also, discuss payment terms and the details you want to be included on the invoices. Payment terms should include discounts for early payments and penalties for late payments. That’ll reduce the amount of time spent seeking clarifications from vendors.
Assign Specific People to Invoice Reviewing Processes
Reviewing invoices takes considerable time, especially if you don’t have clear guidelines. Business owners assume that each employee should be responsible for reviewing their invoices. But this only translates to more time wastage.
Instead, leave the reviewing process to an expert, preferably the finance manager. Their expertise allows them to review invoices faster and with greater accuracy. Also, don’t forget to conduct random assessments to keep the assigned party on their toes.
Though reviewing should be left to one person, invoice collection shouldn’t. It’s too tasking to have the finance manager handle all your business’ invoices. That may lead to reduced productivity over time.
So, encourage them to collaborate with different account managers and team leaders. They have more insight into expenses that may have been overlooked in the invoices. Collaboration ensures greater accuracy and allows the finance manager to focus on reviewing.
Plus, it’s easy with online invoice payment processing technologies. They allow the parties to work simultaneously, thus saving time.
Use Invoice Software
Automation is vital in streamlining invoicing processes. It saves time and money and improves accuracy by limiting the level of human involvement.
You can use various tools to process and track your business’ invoices. One of the most popular is spend management software, which acts as an invoice tracker. Tracking invoices gives you greater control over your financial health.
However, don’t just invest in any management software. The spend management software should be easy to use to ensure faster tracking.
Streamline Invoice Payments by Following These Tips
Processing and tracking invoice payments can be daunting and expensive. Luckily, you now know how to reduce costs and ensure greater accuracy in processing.
Communication and automation are the key ingredients to smoother invoicing. Follow these tips and watch as invoice management becomes easier.
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