Three Common Invoices that Business Owners Miss
Starting and maintaining a business is no easy feat, and when it comes to cash flow, even the most diligent of owners can make mistakes when it comes to invoicing. This is not to say that you’ve forgotten to send a bill for a client to pay off, it’s simply not passing on the costs that you can pass on. As a small business owner, you should be rewarded for your hard work and remunerated accordingly. It’s important that you get paid for each minute of work you do, and each expense you incur. Not only that, but billing appropriately also helps you maintain a healthy cash flow. Here are three of the most common invoices that business owners overlook during the billing process:
Just like any work you do, you should be paid for it, and consulting is a part of this. If you’re someone who’s giving professional advice to potential clients and customers, it’s within reason that you are paid for it too. It’s important that you place a value on your time when you’re giving valuable advice – it legitimises your business and your professionalism. You may choose to offer a free consultation during your initial meetings, but after that you shoulder consider billing your customers. As long as you are upfront about the costs, this should not be a problem with your clients.
If you are required to travel as part of your work, you don’t always have to bear the burden of travel expenses. Small business owners are constantly battling to stay on top of their cash flow, and this extra strain on funds can easily be alleviated. Again, you need to be clear about reimbursements from the get-go to avoid any misunderstandings about payments.
Again, this is about your time – and time is money. You should always be aware that any work you do for your customer is billable including the many hours you or your employees spend brainstorming and researching. Keep track of how much time you spend to invoice your clients correctly.
Invoicing appropriately legitimises the work of your business, and shows that your time and input is valuable. Don’t sell yourself short – not only is it good for your business, but it’s also good for cash flow.