Invoice tips: How to organize your business payments

Keeping your business and workspace organised is one recipe of success. Regardless of your personality or behaviour, it is something that you should learn and ingrain to your day-to-day tasks. One effective way of keeping track of all your transactions is by recording them. Paperwork is one of the most despised parts of business accounting because of its time-consuming nature. It can also be a headache, especially for those who have little to no background in accounting

Both new and established businesses need invoices to keep track of pending payments expected from various consumers. These documents also give an idea as to what the business has acquired from vendors. Sometimes, it can be quite hectic to balance the books even with all the records in front of you. This is where invoice organisation comes in. You can never go wrong with your calculations if you know what you are doing, and different essential elements are well sorted out. Fortunately, there are many methods to organise your invoices, and you can easily select one that best suits you. Read on to find out more.

1. Keep everything updated

One mistake that some business owners do is not keeping their transactions current. The first rule in organising your payments is to know what you owe and what you are owed. It is the only way you can manage to balance the books and come up with accurate figures. Make sure you file the invoices on a daily basis to secure your money and that of your customers. This strategy will also help you get paid on time as you’ll have enough time to follow up on your consumers.

2. Arrange files in chronological order

Are you struggling to find an invoice dated a few weeks ago?  Well, you can save yourself from this trouble by ensuring that your financial files are arranged according to the date. You can create a folder for each month, as well as weekly sub folders. Whichever way you decide to go about this, just make sure you can get to a given file as first as possible. Of course, if you can digitise your invoices, then, do not hesitate to do so because it will save you a lot of time.

3. Make use of spreadsheets

Microsoft Excel has been around for many years, but not all businesses use it. If you have been wondering where you need Excel sheets, then, this is it. Spreadsheets can save you a lot of time by organising your invoices. The best part about this is the fact that you can still access your files with ease regardless of how you decide to arrange them. You can create one spreadsheet for weekly, bi-weekly, or monthly invoices.

4. Use cloud-based storage

Storing the files on your computer’s hard drive may seem like a wise idea, but it could actually mess things up as you’ll always be at risk of losing all your data. In addition, these files can pile up and fill your space, which is something you would want to avoid. Housing these files in a cloud-based tool will make them safe and easily accessible from anywhere. You can also use this tool to back up your data.

5. Employ invoice software

If you want to safeguard your payments, be ready to spend a few dollars. There are several options available today, but having invoicing software as your assistant can be very useful, especially when you are getting more clients by the day. The last thing you would want is to cater to more monthly or annual expenses. Luckily, there are a few free invoicing software you could try out for a start.

6. Avoid procrastination

As the number of invoices rises, you could be tempted to put some off for another day. Unless it is necessary to live your tasks hanging, try and complete them on the same day or week. If you have decided that you’ll do invoicing every Friday, try and stick to the schedule as much as possible. Remember, procrastination becomes a habit only if you allow it.

Final thoughts

Whether it is a start-up or an established business, invoices play a significant role in its success. As such, it is important to ensure that all your payments are organised to avoid messing up the finances. One way of doing so is by keeping everything current on your invoice files. Another way of arranging your payments is by either using an invoicing software or Excel spreadsheets. It doesn’t matter which method you choose to use; what matters is how you implement it. Also, it is helpful to have an invoicing schedule and to stick to it as much as possible.

By Editorial team