If you are a freelancer or a small business owner, you know how important it is to keep track of your expenses and your income. This blog will look at the best time to send out invoices to clients.
Business owners are constantly looking for ways to increase their bottom line. There is a lot of information that goes into invoicing, you need to know the best time to send an invoice to your clients, and you need to know how to follow up on outstanding invoices.
When is the best time to send out invoices to your clients?
That's a question that has been asked for years. The answer has always been based on a gut feeling or a hunch. And while some general rules of thumb may have been followed, the majority of businesses have always been on a trial and error basis. Why? Because they didn’t know that there was a proper method to the madness. There were a lot of factors that could come into play when sending out an invoice to your clients. And some of those factors weren't even known. But, with the advent of the Internet, came a lot of data. Data that could be analysed and patterns that could be discovered. Data that could be used to get a better idea of the best time to send out your invoices.
With all that being said, to answer the question mentioned above, we would say the best time to send out invoices to your clients is literally anytime that you can think of. You can send invoices during the week, or weekends and/or towards the end of the month, depending on the client and the type of business or service you provided for your client.
But most businesses have adopted a style of distributing invoices on the last week of the month.
Why sending out invoices during the end of the month makes sense.
Most companies process every payment that they have to make at the end of the month. Given that information then the best time for a business owner is to send out invoices to their clients is towards the end of the month, the last week of the month to be precise. This works as a reminder to your clients to not forget to make all those necessary payments. This is important to avoid any disputes and to protect yourself from non-payment. Most importantly, it is a way to get paid before you have to pay your employees or settle any other bills you have.
How to make sure that you do not forget to distribute invoices?
It might seem like a simple thing, but many small businesses forget to send out invoices and because of that, they don't always get paid. A forgotten invoice can cost a business a lot. In fact, it can cost you a lot in terms of lost cash. In the worst-case scenario, it can lead to a bad record on your credit history. So how do you make sure that you do not forget to distribute invoices?
The best thing is to create a monthly financial calendar.
Invoicing clients is a very important part of running a freelancing business. If you're not getting paid, then it's impossible to stay in business. If you're not getting paid on time, then you'll have a lot of financial stress in your life. If you're not getting paid in a timely manner, you'll find it impossible to start a business in the first place. So if you want to take your freelance business to the next level, you need to make sure that you take care of your clients. Some freelancers think that clients don't pay on time. It's not the client's fault though -- there are a lot of things that can delay a client from paying you when they should. You need to take care of the invoicing process in a way that there are no delays in when you get paid. The first step to doing this is to create a monthly financial calendar.
A monthly financial calendar helps you
- If you earn regular pay-checks, or at least know when to expect the next one, add your paydays to the calendar.
- To avoid over- and under-billing.
Other factors that affect the best time to send out invoices
There are many factors that will affect when you send out invoices to your clients. You need to pay attention to the seasons, the holidays, your clients, and your industry.
When you make sure you follow the best days to invoice, you won't lose your client's trust. Issuing the invoices in time helps you save on accounting costs by reducing the number of hours spent on bookkeeping work.
We hope this blog post has helped you determine the best time to send out invoices to your clients. We know that getting invoices out on time is critical to your success, and we want you to be able to get paid on time too!
Thank you for reading, we are always excited when one of our posts is able to provide useful information on a topic like this!