Cashflow Issues In Small Businesses and Freelancers

Freelance workers and small business owners with good sales volume can still have cash flow issues. If money for services renders or goods sold is not coming in within a reasonable period, the freelancer or business may struggle to pay bills or employees. It is essential to send timely and easy to read invoices for products sold or services performed for others to avoid cash flow shortages.

Although it is possible to create a manual invoicing system, many smaller firms enjoy using mobile applications to invoice their customers. Street Invoice is an example of a mobile invoice system used by freelancers and small businesses.

Invoice Information

When preparing a manual invoice, decide on the information to include on the form. Most invoices contain the following details: 1) the name and address of the entity, 2) the customer’s name and address, 3) PO number used by the customer, 4) customer phone or email address, 5) transaction date, 6) description of the transaction, 7) payment terms or options, 8) unit price (if applicable), 9) units sold, 10) total order amount, 11) sales tax, and 12) discount, such as less 3 percent if paid within 30 days.

Item Descriptions

This information describes what the customer purchased on the invoice. When the business or customer reviews the invoice, the sentence or phrase helps the parties recall the transaction. Unit price refers to the customer’s cost per item.

Payment terms and options describe when the customer must pay the bill and any penalty the business assesses if the customer does not pay on time. The invoice should include instructions about the ways the customer can pay, such as the business’ PayPal associated email address or online credit card payment system.
Invoice Numbers

Repeat or larger customers refer to invoice numbers. If the customer calls about an invoice, he or she is likely to refer to the invoice number as a way of referencing the transaction. By numbering the invoice, both buyer and seller can quickly retrieve the invoice information.

Many businesses number invoices with the date. For instance, all invoices sent out on June 30, 2015 may begin with 6302015. To differentiate the invoices sent on that day, add the invoice number, such as 6302015-01.

Mobile Invoice System

Vendors and freelance providers must send an invoice to get paid for goods sold or services performed. A mobile invoice application can help the business send out invoices immediately to improve cash flow.