To get your Start Up moving you are going to need cash flow, and unless you have already raised these funds, you will need to get your invoicing on point early on. Many businesses find it difficult to stay on top of their invoicing and balancing their books early on; here is some tips to get you started.
Bookkeeping software: The single most important bookkeeping tip we have is to implement a cloud based bookkeeping system. The big players in this field are Xero and MYOB, but there are some other options as well. Most will have apps available on tablet or mobile, which will take your bookkeeping on the road with you. Many bookkeeping cloud options also have additional add-ons that will measure your workflow (particularly help for service or consulting based businesses) or additional software that measures your invoices for costing, margin, stock and pricing patterns.
Be clear and fair: Make sure that the details on your invoices are correct and are in line with was originally discussed with the client. Make sure that your payment terms are fair on the clients and on you. If you intend to charge a late fee penalty, make sure that information is easily accessible
Schedule your book keeping work: In order to maintain regular cash flow you will need to make sure that you invoice regularly. Your clients will not pay you the day after they receive your invoice, so don’t send it the day before you ‘need’ the money. If you make purchases from your wholesaler on the 18th of each month, then make sure you have sent out your invoices well before the end of the last month. Regardless of the payment terms you have on your invoice you should expect that they will be paid within four to six weeks.
Rubiix is passionate in assisting clients achieve their business goals, including support for start up businesses to get going and grow. Over the years we have helped many start ups become the successful businesses that they are today. Contact us if you would like to break free your concept today!
