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Why is it profitable to outsource invoice follow-up?

Invoicing should be done continuously for best results and to increase the probability that the money will arrive on time, but unfortunately this is a low priority for many companies. Why is this so and what consequences can it have for your company's liquidity?

We often talk to companies that think that invoicing can be both difficult and time-consuming, and for those who offer hourly services, it is often challenging to invoice as the sum of the hours should reflect the delivery. These factors, combined with a hectic everyday life, mean that companies prioritize other main tasks and postpone invoicing.

To help you and your company along the way, we have gathered our six best tips to get billing on the agenda again, and maybe the tips will make the work feel easier and more fun? By entrusting invoice follow-up and debt collection to a professional partner, you can focus on your main tasks for which you are paid. We have tools and systems for your company to have a healthier economy and better liquidity. Axactor streamlines this work through a combination of automation and a good customer experience.

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Our top six invoicing tips

  1. Invoice on an ongoing basis:
    Our very best tip is to invoice as soon as you have done a job or sold an item. Many people forget or choose to wait with the invoicing until the end of the month, something that often becomes stressful and can feel difficult. In addition, it increases the likelihood of forgetting expenses or other costs that would be included on the invoice. By invoicing on an ongoing basis, you increase the company's liquidity and prevent you from invoicing at a loss.
  2. Make sure you have the correct information:
    Update your database with prices and customer information continuously. Then you ensure that you get the right price for the product/service, and that the invoice reaches the right recipient.
  3. Specify the invoice:
    Be sure to specify the invoice as clearly as possible. It then becomes easy to understand for the recipient and you do not get unnecessary questions back, which literally take both time and money.
  4. Use e-invoice:
    Most companies have the opportunity to receive e-invoices, and by using this you ensure that the invoice goes straight into the customer's system.
  5. Do not become the customer's bank:
    Many companies end up as the customer's «bank», and this is very unfavorable for your liquidity. Average credit time should be as low as possible as it is always an advantage to get the money in as soon as possible. In Europe, the average credit period is 44 days. In practice, we often get in contact with companies that have significantly more days in credit time, and thus a high proportion of outstanding receivables, which in turn has a negative effect on the company's liquidity.
  6. Have good routines for invoice follow-up and debt collection:
    Unfortunately, at some point everyone will have customers who do not pay, no matter how good customer relationships or routines you have. As part of your company's invoice follow-up, you should therefore have good routines for invoice follow-up and debt collection. The work should be handed over to a professional partner who has the right skills and system to handle this correctly. With Axactor as a partner, your invoices will be prioritized and your company will have better liquidity, while maintaining your company's good reputation.

Do you want to get started with the last part of your good billing routines? Let us help you!

Do you want to know what we can do for your business? Get in touch and we'll tell you more!