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Things to Remember While Generating Business Invoice

Generating an invoice is generally regarded as a tedious task, but it is an important part of running a successful business. A good invoice generator can make both clients and employees happy. Here are a few things to remember while generating business invoices.

You can judge a business’ overall performance by looking at their cash flow. Invoices help you keep track of your accounts receivable and billing. For small businesses, hiring a team for specifically for this purpose may seem like an undue expense, especially when you can find an invoice generator online that will make the process convenient. Many receipt software is available in the market. You can save the time by using an online invoice software.

Here are some of quick tips that you need to keep in mind while generating invoices.

Use an Online Invoice Software
As a small business, generating invoices on paper can cause along-term dent in your capital. They are not only expensive but time-taking and unreliable. Even a free invoice generator online does a better job at invoicing than the traditional methods. With paper invoices, there is always room for human error,not to mention, the wastage of human resources. However, if you are using an online invoice software, you don’t have to go through endless files to find receipts. Sinceinvoicing is a mechanical job, an invoice generator can do it free of cost. The best part about online invoice software is, there are no delays or last-minute confusions. You can set up invoicing dates and use automated service. Also, you can edit them if there are any corrections.

Use Templates for Developing an Invoice
Since invoicing affects so many aspects of your business, it is best to stick to a set of norms. Using a set template for developing an invoice avoids unnecessary conflicts. You can use different templates for different kinds of invoicing if you use an online invoice generator. Not all clients are the same, so choose your template based on the client’s needs. It is a good business practice to discuss it with your client. With an online invoice, you can avoid delays and confusions. Choose a template that clearly defines the mode of payment, the due date, and the nature of the service. You should add sub points to the service to get across exactly what you have done for the client. With an online invoice generator, you can develop an invoice that includes all taxes. This saves you much time and effort. You can also customize your templates for discounts. Select a set of templates that suit your business the best.

Also Read: Online Invoicing for Small Businesses: Brief History & 5 Essential Invoices You Need

Set Payment Reminders
Small businesses have an irregular flow of cash because of delay in payments. Also, it is not the easiest job to convince all your clients to remain true to the due date. Endless hours are spent on email conversations and telephonic calls. So, when you use online invoicing software, you can set up payment reminders both for your team and your client. It is a much more sophisticated set-up than calling endlessly. Overdue payments are a headache to manage, anyway. So, when invoicing, always mention a due date on your invoice beforehand. If your client still doesn’t process the payment on time, set-up automatic reminders. And, even if this doesn’t work, then you have to get in touch with your client personally. However, a healthy business relationship comes from a trust. So, if for some reason they are unable to pay you at the moment you can reset the due date. The job becomes easier if you are using an online invoice generator. You can also set up a list of defaulters and use a different invoice template for them in the future.

The possibilities with using an online invoice software are endless. You can try the CloudBooks invoice generator for a hassle-free experience.

Also Read: How to Choose a Small Business Invoicing Solution: The Complete Guide

Smart Time Management Tips for Small Business Owners

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Time is precious, particularly when it comes to running a small business. Therefore, learning time management skill is a lucrative investment. Here are a few tips on how to manage time smartly for your business.

Running a business is not an easy. It is a juxtaposition of all kinds of tasks, from marketing to administration to management. Between the juggling, the likeliness of business owners losing sight of their goals is high. Small businesses, with fewer employees who are overworked, are, particularly at a disadvantage. Therefore, it is imperative to acquire some time management skills before you start a business. Once you understand the time management in business, you will find higher level of productivity. This is because even during hectic working days, you will sail through smoothly.

Here are some effective time management tips for small business owners.

Stick to a Plan
As a small business, this is one of the most effective business management tips. An organized and clean approach makes your business efficient. Having an action plan is the first step. Sure, you have long term goals for your business, but do you have a plan for day-to-day operations? If not, get to it instantly. Develop realistic weekly goals over the weekend and plan everyday according to that. You could do it the literal way and assign hours to each goal, or take another approach and make a list of day’s activities, and check each one off as you go. The problem arises when people set unrealistic targets that they are not able to fulfill. Disappointed, they end up wasting precious time and energy. So, plan to do things that are truly achievable. And once you have that going for you, just stick to it. Make it a sacred duty for yourself and your employees to follow the plan religiously.

Also Read: Time Management Tips for Small Business Entrepreneurs that Actually Work

Use Automated Software
When your entire team is following a set plan, and you still don’t get the desired results, who do you blame? There are usually just a few defaulters, who ruin the average day’s work. To instill a sense of duty, use a time tracking software. Many good time tracking software are available in the market. The great thing about such software is that it doesn’t require maintenance or a dedicated HR personnel. Since all your employees have access to the technology, they become responsible and get the work done on time. some employees might work over time, and they deserve their due for it. A time tracking software lets you record the time put in, and thereby increases efficiency. Moreover, automatic reminders in the time management software will keep you and your employees on track.

You can also use invoicing software to save time. Invoicing, though one of the most important job, is quite tedious and time-taking. By automating, you can free up time for other things like strategizing, marketing, and product development. It is also 100% reliable.

Recognize and Eliminate Distractions
Small businesses face a lot of setbacks and challenges initially. It is a chaotic mess where everyone is doing everything. We’ve seen a lot of small business owners, actually billing clients for pay day. This isn’t right. It is regressive and an inefficient approach. Some employees spend entire day responding to client queries. Especially when you feel bogged down and overwhelmed with your work, it is likely that you have a little too many distractions. Identify these, accurately. Some employees tend to spend too much time on social media platforms during office hours. Keep a check on it, and politely ask to avoid such activities. It is human nature to get distracted, but you have to limit it. Mindless browsing over the Internet is another big distraction. Although, it is not recommended to ban a website, but keeping a healthy check is important.

Also Read: Awesome Productivity Tips for Small Business Owners

Know These Key Performance Indicators (KPIs) for Your Small Business

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Key Performance Indicators (KPIs) are measuring tools that small business owners use to keep track of the progress in terms of profit and business growth. They let the entrepreneur know what they are doing right/wrong by showing the company’s health. These are the most crucial KPIs for small businesses that need to be monitored for ensuring constant growth.

Market share
Market share is a crucial financial KPI for small business. It shows how much control you have on the market. Knowing how well your company is doing relative to firms offering similar products, is crucial for sustainable growth. This is because you can adjust your strategy based on the competition to gain an edge.

Net profit
Net profit can be arrived at by subtracting your expenses from your revenue. It is one of the main business key performance indicators. Tracking it constantly every year tells you whether your business is profitable or not and by how much as well.

Net profit margin
The profit margin can be found by dividing net profit by revenue. For instance, if $10,000 was the revenue for the year and $4,000 was the net profit, then your profit margin is 40 percent, implying that you keep $0.40 for every dollar your company makes. Monitoring this KPI every year is essential because it tells you how efficiently you are using your revenue to generate profit.

Customer Acquisition Cost/ CAC
This indicator tells you how much you spend on getting a customer through your marketing efforts. CAC is a particularly important small business marketing KPI for internet-based companies. It gives them an insight into how to improve their marketing efforts.

Funnel analysis
In the age of the internet, small businesses have largely moved online for boosting revenue. This process measures the number of visitors who left a conversion without completing it. It helps you identify the reason that made a prospective buyer drop out of the conversation. Knowing these details can help you develop better sales strategies.

Quick ratio
Since cash flow is essential to prevent a small business from failing, you have to ask yourself this question frequently: Do I have enough money to cover my liabilities? To know the answer, add cash, marketable securities, and the amounts that you expect to arrive soon, and divide the sum by liabilities. Notably, a higher quick ratio signifies a healthy business that can take care of its present liabilities.

A customer’s lifetime value
This KPI tells you how much is a customer worth. You need this because it gives you an idea of how much to spend on sales/ marketing. Finding how much a customer is worth, and keeping your sales/marketing costs significantly lower, is a winning strategy.

If you work with clients on a retainer basis, you can determine this KPI by multiplying the average number of months a client has worked with you by their average retainer price.

If your collaboration is on a project-basis, finding the average number of projects you work on with them per month, and the costs involved will give you an insight into the client’s average lifetime value.

The bottom-line
Tracking of these KPIs can go a long way in keeping your business healthy while providing with the insights needed for further growth. Monitoring these KPIs does not have to be a cumbersome process. Knowing the most relevant KPIs for your business and using the right tools for applications such as business expense tracking can help you make informed decisions that drive business growth.