
The ability to talk about money is a curious thing. Some people feel uncomfortable discussing financial matters – whether it’s others knowing how much you’re paid or, in the case of business, asking debtors to settle what they owe. I’m not sure whether this is a uniquely British phenomenon, or perhaps even a specifically Scottish one, but it does seem to be cultural in nature. Regardless, money matters – and for most businesses, cash flow is critical.
Talking about money shouldn’t be awkward, especially when it’s money you’re owed. Invoicing is more than an administrative task; it’s a business-critical process that supports cash flow, financial stability and professional relationships.
When I speak with other small business owners, I often hear that invoicing is particularly challenging for them. At our company, however, we take what some might describe as a ‘brutalist’ approach, but I see it simply as best practice, and nothing to be embarrassed about or to apologise for.
Here are a few of our top tips for the invoicing process, following the completion and approval of work for a client.
- Raise the invoice promptly. Prepare the invoice as soon as the work has been completed and approved – don’t wait until the end of the month, for example.
- Have a colleague review the invoice to ensure accuracy. A second review can help identify any errors or omissions before sending it to the client.
- Send and confirm receipt. Once the invoice has been checked and approved, send it to the client and ask them to acknowledge receipt. This helps confirm that the invoice has been successfully received. If no confirmation is received within a couple of days, it is good practice to follow up with a polite reminder, as emails can occasionally be missed, delayed, forgotten about, not actioned or inadvertently filed in the junk folder.
- Use cloud-based accounting tools. If possible, use a cloud-based accounting system to track when invoices are due for payment. For most of our clients, payment terms are 30 days from the date of issue. Clients should be fully aware of our business terms and conditions before any work begins. This is part of our onboarding process and helps to avoid confusion or disputes later. We direct all new clients to a dedicated web page outlining our terms, so there is a shared understanding of payment expectations and procedures from the outset.
- Follow up promptly. If payment hasn’t been made by the due date – or if no remittance advice has been received –follow up by politely enquiring when the payment will be made. We also have a clear escalation policy, but that is another discussion.
These five steps represent best practice and form a practical framework for timely payment. However, they do more than simply support cash flow – they contribute to the overall health and professionalism of a business.
When invoicing is done well and promptly, it promotes financial stability. That stability, in turn, allows us to plan ahead confidently, pay our suppliers promptly and make decisions without the stress of uncertain income. It reduces cash flow headaches, supports long-term sustainability and reflects a business that is both respectful of its clients and suppliers and proud of the work it delivers.
Ultimately, good invoicing is not just about chasing money – it’s about valuing the service provided and creating the conditions for a healthy, professional, thriving business.