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Back to the invoice
Today, we would be touching on how invoices can help small business owners like you with help from some of our own super business owners on Kippa. In case you are new here or new in business, an invoice is a time-stamped commercial document containing a transaction record between a buyer and seller; it usually provides information on the available payment methods.
What kinds of businesses use invoices?
If you run your business to get paid, you need an invoice. It helps business owners remain accountable and prompt their customers to pay them. If you own a food business, learn from Paul Chibueze who uses it for his business Spicy Shawarma in Port Harcourt, if you own a convenience store, your colleague Aishat Marindoti-Adeyemo uses invoices to run her business Deejay foodstuffs and even if you are a phone and electronics dealer, Isah Hussein Arinola is a Phone and electronics dealer just like you and uses Kippa Invoices for his business. As long as your business involves making money, you should be using an invoice.
How do invoices help small businesses?
According to Paul, by sending invoices to his customers, he has been able to use them as evidence of sales in accounting and to prove that his food business isn't a scam.
"It helps me with all I need to know if my business has made sales or not if I am making a profit or not. I make my customers feel at ease when they food from me; it makes my business feel legit and professional, so they keep coming back".
Can business owners track their cash flow using Invoices?
Cash flow explained easily is the amount of cash coming in and going out of your business. Invoices help you track cash flow by giving you a visible record of all the income coming into your business.
"It equips me with everything I need to use to seem professional and trustworthy to my customers."
For Aisha, it's a way to keep complete track of sales and money coming into her business. She can track everything she sells when she sells them and their means of payment.
How can business owners plan better using Invoices?
Can you tell the future using invoices? No! But you can use records from your invoices to estimate future sales and make plans for your business. Of course, sales figures will change as your business grows but keeping the records would provide an average figure that can be used for forecasting.
"It has helped my business keep proper and detailed sales records. I have all the relevant information about what has been selling and how well. This helps me think of other creative ways to sell my services."
Do Invoices get small businesses paid faster?
"I have learned how to collect my money quicker and better than before with invoices."
Invoices prompt your customers to pay you for a prospective or completed task however, Kippa invoices goes the extra mile by sending automated reminders to customers who don't fulfil invoices after a long time. For Isah's phone and electronics business, using the invoice has taught him the valuable lesson of requesting payment on time from his customers because It makes it easier for him to get paid.
Helpful invoicing tips for small businesses
- Automate invoicing process – forget manual accounting and hop unto the business with ease train.
- Generating invoices on time – Even though there is a debt reminder function to help you get paid faster. It would help if you still did the due diligence to send your invoices immediately after your product or service is rendered.
- Give a unique number to the invoice – Sequential numbering helps keep a clean bookkeeping record. Kippa allows you to attach numbers to your invoices.
- Communicate with clients – keep in contact with your clients and be polite
- Follow up – Don't be scared to ask for payment when due. Nobody can beat you.
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