It surprises people to learn how factoring improves invoicing. Here at TCI Business Capital, we sometimes hear from our clients, “we came for the money, and stayed for the service.” One of the primary services clients benefit from is the best tips and practices for improved invoicing.
Most every industry has standardized invoicing practices. These give bookkeepers and accounting departments the ability to quickly and efficiently approve, process, and pay invoices. Invoices that do not follow normal standards are not approved immediately. Extra effort is needed to correct them, and then to complete the approval process. This means a delay in payment for you.
The account administrators at TCI Business Capital work closely with payable departments in many industries. These relationships keep TCI staff in the know as to each company’s invoice requirements. The account administers will work with clients to improve their invoicing procedures, which results in easier processing and faster payments of client invoices.
There are common billing mistakes that are made in every industry. Here are some of those common mistakes and tips to be aware of as you create your invoices.
One of the top reasons invoices are delayed in approval or processing is missing paperwork. Every invoice submitted for payment must have all supporting documentation attached. Supporting documents such as bills of lading, time sheets, or weight tickets are proof the job has been done. Documents should be signed by a receiving party or job site supervisor. Accounting departments rely on the signature so they know who they can go to to discuss any issues.
A clean, legible invoice not only makes accounts payables’ job easier, it is also a representation of your company. Invoices scrawled out on notebook paper, or dirty from coffee stains do not give a good impression of your company. Also, be sure to organize your invoice and supporting paperwork and staple or paperclip it together.
Being 100 percent accurate with your billing amounts and information is vital. Work order or job numbers must always be included on the invoice. The work volume and rate being charged should be listed, not just the total. Any deviation from contracted prices or rate should be noted and supported by documents whenever possible.
Make sure you have a clear understanding of where to send your invoices. Some large companies use third-party resources to process their payables. Also, make sure on large jobs that you know whether or not your customer accepts summary invoices. Billing multiple work orders or jobs on one invoice is not always acceptable and may get your invoice rejected.
Using an invoice factoring company such as TCI Business Capital will benefit your company’s billing processes right away. Our account administrators have knowledge and experience from working with thousands of accounts payable departments. The account administrators recognize billing mistakes, then work to correct them before invoices are submitted. This prevents delays in approving and paying of the invoices, therefore your factoring fees stay low.
To learn how factoring improves invoicing to help streamline your business, call TCI Business Capital at (800) 707-4845 to speak to a cash flow expert about your invoice factoring needs.