Invoice software can help brands get paid faster. Signing up a new client and getting the initial order is an exciting time for a brand. The challenge often starts soon after as you try and get your retail partner to pay on-time. I know this is not always the case, but it can be a significant issue for growing brands. Often the larger the retailer the longer it takes to get paid. Doing a better job on invoicing keeps your days sales outstanding lower and helps with your cash flow. Here are some things to look for in invoice software to help get paid faster.
Make Sure Your Invoices are Accurate
One of the issues that can delay getting paid is when you submit an inaccurate invoice. Maybe you are missing a proof of delivery, there is a tax issue or other reasons why a retailer may reject your invoice. If a retailer does reject your invoice it often happens close to when they are due to pay you. A 60-day payment term can quickly turn into 120 days. Your invoice software should help catch that problem before it is sent.
Send Electronic Based Invoices
You should not be printing invoices any longer. Paper based invoices can get lost, there is no visibility on their receipt, they take time to be delivered, and are expensive. Your accounts receivable invoice software should primarily be based around sending the invoicing electronically. The other aspect of this is that it allows the supplier/brand to proactively follow up on receivables vs waiting for 30 to 60 days.
Many large retailers force suppliers to use their hubs. This saves time for the retailer but can be cumbersome for the supplier. Look for an invoice software solution that allows for the seamless integration into those hubs.
The quicker an invoice gets out the faster it gets paid. By having invoice software, it means that it is easier and more efficient to submit invoices. Send your invoices out frequently.
Look for Red Flags
One of the big benefits of sending e-invoices is that you can get extra analytics. Good invoicing software allows organizations to see if emails have been opened. If the invoice is not opened, then it is likely it won’t be paid. Generate reports and have the Accounts Receivable team use that information to proactively follow-up.
If you are interested to see how OnePosting can help your organization with smarter invoicing please schedule a meeting with our team.