Nothing relieves you more than to see that your invoice got paid in time. If such is the case, then it wouldn’t harm to learn a few tips that would help you get paid faster.

Especially, for a small business owner or a startup entrepreneur, it is important to pre-define the method of payment to be collected from customers and in which way to pay to the wholesalers. Accepting cash payment might create a problem as then you’ll need to maintain the records of the same. If you are not getting paid at the time of sale of goods or products then you need to send invoices/bill and have to make sure that those get paid quicker. An important factor to keep in mind is that the longer these bills remain outstanding, the less likely you are supposed to get paid. In such a scenario, you can take help of a small business billing app to get you through the late payments from the customers.

Below listed are the few ways to get you paid faster for your invoices. Let’s check them out:

1) Eliminate New Customer From Credit

Just like medium or large enterprises, even small businesses need to have their credit policies in place to offer to clients or customers. A credit policy that clearly outlines which customers and on what terms they are supposed to be given an extended credit can set your invoicing system in place and helps you to maintain cash flow for your business. Procedural guidelines that will explain them to either fill out a credit application form or to do a credit check for the same.

2) Ask For Partial Pay In Advance

If you wish to not leave it till the end then you can approach your customers with partial payment in advance or kind of an upfront deposit for the inventory cost for the task. It is now becoming a regular business practice in the invoicing industry and moreover, the move is usually welcomed by all the reasonable customers. This step will at least ensure of you receiving some payment rather than not getting paid at all.

3) Invoice Promptly

Not sending invoices upon completion of work or rather waiting to prepare professional invoices after the service is rendered, shows unprofessional business attitude and implies a careless approach to get paid faster. This could add as many as 30 to 60 days for you to get paid for the work already done. Small business accounting software will not only help you in not only creating professional invoices for payment but such online invoicing apps can act as an online expense tracker.

4) Mention Clear Payment Terms

If you would like to maintain optimum cash flow for your business then do not leave it up to your clients or customers to decide when your invoices should be paid. Send payment reminders via emails regularly to inform them about the payment and to get paid on time. Make sure to include to the due date in the invoice as it will trigger them to respond quicker.

5) Drop Any Errors

Mistakes in your invoices can cause a delay in the payment. If the error is regarding payment amount or any other major issue, it could harm the business reputation as well. Using a free invoice generator will ensure to take all the information automatically such as noted billable time, estimates, quotes, and any other pertaining details to create accurate invoices from the available information.

6) Selecting The Right Billing App

Moon Invoice has come up with the comprehensive online accounting & billing solution that connects small businesses to their accountants, Bookkeepers, banks and other online business software. Over the years, Moon Invoice is successfully able to pave the way for our customers to directly connect with their customers and suppliers or vendors so as to carry all the invoicing related business operations seamlessly.

Following are few of the handy advantages of Moon Invoice:

Manage Invoices & Credit Notes effortlessly
Administer seamlessly Estimates & Purchase Order
Smart Filter option with 22 Professional PDF templates
Save time with auto invoicing numbering and avoid any critical financial data entry error with iCloud Sync feature.
Manage Separate Customers & Vendors list
Track expense and payments
Add unlimited companies
Smart Quarter and Summary view
Create custom invoices with the option to add 2 different signatures, name, title, and date
One touch Backup & restore option with TouchID Protection
Customize PDF layouts, alignments, image, color and format

Recurring Payments Vs Recurring Invoices

Recurring Payments	Recurring Invoices
Recurring payments charge the customer’s credit card account or debit card account on a predetermined schedule for the same amount as preapproved.	Send an invoice to your customer on a regular basis. The client receives the invoice but, money is not paid unless the customer approves.
A business that takes prepayment of money and sells a monthly subscription service and product. Subscription services are excellent examples of this.	A company that provides fixed services with billable hours is an excellent choice for recurring billing. For example law firms and consulting agencies.

Pros and Cons of Recurring Invoices

Pros	Cons
You eliminate the possibility of human error by automating the billing process. If you use a recurring invoice, you will not be concerned about forgetting to charge your customers for the things they ordered.	You must exercise caution while recurring billing to prevent issuing inaccurate pricing. This also holds for price changes that could take place right once an invoice is created.
If you provide your customers with the option for recurring billing, they are more likely to buy products regularly.	It could be difficult to cope with recurring invoices if a transaction fails for any reason.

Net 45	Invoice is due in full within 45 days with no early payment discount offered
2/10 net 45 terms	2% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days
1/15 net 45 terms	1% discount if you pay within 15 days; otherwise full payment of the invoice is due in 45 days
1/10 net 45 terms	1% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days
1/7 net 45 terms	1% discount if you pay within 7 days; otherwise full payment of the invoice is due in 45 days

Category	Net Method vs. Gross Method	Explanation
Calculation Approach	- Applies tax credits first; reduces taxable income before computing tax liability.	- Doesn't apply tax credits; computes taxable income without considering tax credits.
Tax Credit Eligibility	- Allows for greater likelihood of tax credit eligibility due to reduced taxable income.	- Limits tax credit eligibility because taxable income hasn't been reduced yet.
Itemized Deduction Requirement	- Lowers threshold requirement for itemizing deductions due to decreased taxable income.	- Raises threshold requirement for itemizing deductions due to higher taxable income.
Advantages	- Leads to lower taxable income and increases chances of meeting qualifications for other tax benefits.	- Results in higher taxable income compared to net method.
Disadvantages	- May miss opportunity to reduce tax burden if taxpayer doesn't itemize deductions or take advantage of tax credits.	- Increases taxable income and may result in higher overall tax bill.