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Online Invoice Maker

You can make faster payments with an online invoice maker

You can make faster payments with an online invoice maker

It can be frustrating to wait for a payment that is not due. An online invoice maker can help you get rid of the frustration. Although paper invoices are still a common way to do business, they can be tedious and unreliable. It is much easier to do business online. These are just a few of the many benefits that online invoice systems offer over paper.

Files can be accessed online

People create invoices using Excel and Word programs. Their files are saved on their hard drives. To access their files, they will need to bring their laptops. This means that several years’ worth of invoices could be lost if the hard drive is corrupted. This is eliminated by an online invoice maker that stores files in an online database. The person’s files are accessible from any computer with internet access. This makes it much easier to conduct business meetings in the offices of other people.

Invoices can be organized and filed online through a system

Invoices made from paper are often filed in cabinets using a disorganized or complicated system. It may prove difficult to locate an invoice that has been stored for a long time if it is not possible to find the original invoice. Online invoice makers make it easy to keep track of transactions from the past. You can access older files from the internet database. It is easy to find a particular item in an invoice because they are filed chronologically.

Current Payment Status

Automated payment is one of the most important features that an online invoice maker offers. Every invoice will show whether a client has already paid for the previous service. Invoice systems will notify clients if they have not paid for any services. Online payment systems allow business owners to receive their payments quickly. A business owner won’t have to wait for weeks to receive the due amount. Online invoice makers can process money orders in a matter of days.

An online invoicing system is an excellent choice for small and medium-sized business owners, as well as self-employed individuals. Online access to files is possible from any computer. Previous invoices can be organized efficiently, and money transactions can be done quickly. An online invoice maker is a great asset for busy business owners.

If you simply can’t decide which online invoice system to go with, we recommend visiting Peakflo’s site for related information to help you make the right decision for your business.

It is too time-consuming to bill and creates an invoice in most offices. It takes time to identify clients and determine the amount to be charged. Once you have the details, create the bill and print it to mail it. It is important to keep track of which bills have been paid. You should also check your records in case there are any complaints. These processes will require you to take the time necessary outside of your office hours. It is cheaper to create an online invoice than to do manual work.

Online invoices are paperless and environmentally friendly. They can be printed quickly, as well as reminder letters and credit notes. The data can be stored on secure servers, which will prevent any system failures. Another benefit of online invoices is the fact that you don’t need to wait in line to make payments.

How to Prepare Insightful Cash Flow Statement Projections

How to Prepare Insightful Cash Flow Statement Projections

How to Prepare Insightful Cash Flow Statement Projections





How to Prepare Insightful Cash Flow Statement Projections

It doesn’t come as a surprise that starting and growing a business is no easy feat. But despite the challenges, entrepreneurship is thriving now more than ever. Unfortunately, not everyone makes a home run. According to a recent survey, 30% of Singapore startups fail within the first three years. And that’s despite a thriving entrepreneurial landscape.

Growing a successful business can be tricky, and a lot goes on to it. No wonder many essential aspects of running a business get peeled and put aside. For instance, think of cash flow statement projection or forecasting. The absence of these projections when it comes to making critical decisions is one of the reasons why many startups fold so soon.

Cash Remains The Lifeblood

A cash flow statement and its predictive counterparts are critical measures of a business’s present and future condition and capacity when it comes to its most important driver – cash. Without this vital information, your business might be navigating in the dark. And the last thing you want is for it to become another statistic. In this article, you’ll learn what a cash flow projection is, why you need it, and how to create actionable ones for flawless business financial planning, steering you clear of the pitfalls that many startups inadvertently fall into.

What’s a Cash Flow Statement Projection?

Financial projections, in general, provide a coherent view into how a company expects to perform in the future. A cash flow projection, in this case, lays out a company’s anticipated cash coming in and out over a future period. 

With precise cash flow projections on hand, companies can accurately assess future cash positions and avoid situations that can lead to cash shortfalls. Plainly put, it helps your company make the most out of its cash position, whether it’s on a cash shortage or surplus.

For example, your projection over the next 12-month period might suggest that there’s going to be a temporary increase in expenses. Or it may tell you that there’ll be a short-term decrease in revenue. Either way, you can choose not to buy expensive equipment and opt for leasing instead. If your projection suggests a surplus in cash, you can decide to make plans to put in more money to grow your business.

The Importance of Forecasting Cash Flow Statements

Getting your business’s finances together requires more than just typical money smarts. In fact, real financial-savvy entrepreneurs know that getting down to the last detail is key to success. That’s why they never miss out on financial reports, particularly cash flow statements.

The cash flow statement is often viewed as the most essential among the financial statements simply because it paints a clear picture of a company’s lifeblood. It shows you where your cash has gone, allowing you to plan how you’ll meet obligations while staying solvent. 

But, a cash flow statement is just a snapshot of cash performance during a past period. Yes, it provides a picture of your cash flow health here and now, but to get a better handle on it, you’ll need to create models that help guide your decisions and prepare you for unexpected circumstances. 

Direct Vs. Indirect Method of Forecasting

There are two methods by which you can create cash flow projections – direct and indirect. While both get you the same result (your projected cash flow), each method has its own way of getting there. We’ll go over what is what, showing you a cash flow statement with example for each technique so you can determine which is best to use for your projections.

  • Cash Flow Statement with Direct Method 

The direct method goes directly into detail regarding cash that’ll come in and out of your company over a future period. This means that you and your finance team will project actual cash transactions instead of non-cash ones like the typical sale on credit you make with customers.

As you can see in this cash flow statement example, this method projects the actual cash your business will receive and payout over your chosen period. It itemizes every actual cash transaction, like the ones you’ll use for operational expenses and the money you expect to receive from clients. This method provides an accurate way to predict cash flow, at least for the short term. However, the accuracy deteriorates for longer timeframes since it can be challenging to predict details the longer it gets.

  • Cash Flow Statements with Indirect Method

This method remains the more popular among businesses as it is easier to use in forecasting, using data from the company’s income statement and balance sheet. Unlike the direct method, this technique doesn’t take much time to prepare since it doesn’t get into actual cash transaction details. Take a look at this cash flow statement example:

Looking at this cash flow projection with indirect method, we can immediately see that it uses data from the other financial statements. It starts with the company’s net income as top-line, with entries from the income statement and balance sheet added or omitted to adjust to an actual cash basis. This method comes in handy when your business has a large number of recorded transactions.

Which Forecasting Method is Better for You?

The forecasting method your business should go for depends on its nature. If your company performs too many transactions all year round, a cash flow projection with indirect method could be your go-to. If you prefer more accurate short-term predictions, the direct method might suit you better. There is no correct way to choose a cash flow method when putting up a report or projection. You’ll just have to determine which method suits your current goals since both get to the same bottom line.  

4 Simple Ways to Prepare Cash Flow Projections

Now that you understand the importance of cash flow projections for your business and the methods you can use, it’s time to get into more detail about preparing a cash flow projection that’s intuitive and helpful. 

Here are five easy ways to prepare cash flow projections that you can count on when ensuring that your company stays on top of its cash flow. 

1.Figure Out An Ideal Timeframe

The first step in writing your projection is deciding which period you’d want to cover. Businesses generally go for 12-month periods, like the cash flow statement samples we shared for download above. But there’s no stopping you from creating semi-annual, monthly, or even weekly forecasts. The key is planning as far ahead as you can without compromising accuracy. See, the farther in time you try to cover, the less precise you may get. 

Now, if you’ve done this for a long time, meaning you already have a lot of data from past projections, or you have a very predictable year-over-year output, your projections are walks in the park. But, if you’re starting out and just getting your hands on projections, you might want to keep it leaning over the short-term to ensure accuracy. You can always tweak your forecasts as you handle your business and get more precise estimates.

2.Come Up With Your Cash Inflows

The next step is to predict the amount of cash that’ll be coming in during your chosen period. If you’ve been in business a while, you already have lots of data to look back to for guidance. A good practice is to look at the last period’s numbers to get a better idea of what you can expect during the next. Going retrospect also lets you look at the highs and lows of the past, allowing you to gauge their likelihood of repeating.  

If you’re a startup with little transaction history, your best approach would be to look at expenses and figure out how much you will have to make to cover these costs and make a profit. 

Remember that since this is a cash flow statement projection, keep things on a cash basis. You’ll have to record actual cash transactions, like when customers pay instead of just receiving an invoice. Apart from income, include all other non-sale inflows like tax refunds, royalties, investments, and grants. The objective is to come up with an estimate of all cash coming in during the period.

3.Estimate Your Cash Outflows

Now that you have a precise estimate of the money coming into your business, you’ll have to define the money that’ll come out clearly. List all of your estimated cash outflows. These are cash that your business will use to pay for its everyday needs. As with your estimated cash inflow, going the retrospect route helps a lot when getting specific with your outflows. 

Even if you’re new, you probably already have a good idea of the expenses you’ll incur. Now’s the time to put all of that on paper, on a cash basis. Include every outflow from operational to non-operational costs to loan and tax payments to come up with a total net outflow.

4.Get Everything Together 

You’ve got your estimated cash coming in and out. It’s time to organize all of it into a single report. Separate the entries between two categories – money coming in and coming out. Each category should have specific entries for each account. Rows consist of entries, while the columns are the time intervals that divide your chosen period. When listing all the entries, try to be specific as much as possible to ensure an accurate model. Start with the amount of cash on hand for each interval, adding and subtracting as needed to develop a cash position at the end of each interval (typically a month). Here’s a cash flow statement example

Cash Flow Statement - Sample
Source: Zeni.Ai

Having a cash flow projection like this gives you a better view of what things will be like in terms of cash flowing in and out. As you can see, the prediction we came up with is a  running total, which estimates month-over-month cash flow, allowing you to get a clear picture of what to expect over the period. Say you see a surplus in those coming months; it might compel you to decide to buy equipment or any valuable asset over the period. If you project a shortage, now is the perfect time to be proactive, plan ahead to turn things around, making sure you’ll meet every obligation. 

Take Advantage of Cash Management Software

Ensuring that cash stays in your hands is a top priority, which is why you should never miss out on planning for its future. Peakflo allows you to put your cash management on autopilot to ensure you always stay on top of your lifeblood. Take advantage of our advanced reporting feature that lets you generate reports on the fly. 

Learn more about how we can help here.

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What Is Peakflo Accounts Receivable Software?

Peakflo’s accounts receivable software (AR) allows businesses to quickly and easily generate and send invoices and define credit terms. This allows them to manage collections and gain liquidity to fund growth, reduce the credit-to cash cycle, and take advantage of new investment opportunities. Finance teams have real-time access to all aspects of the account receivable process. They can monitor the status at both the macro and individual level.

Automate and simplify your life

Automated posting of order transactions to general or AR ledgers with precise tax calculations for each invoice allows for fast, accurate and precise tax processing. Peakflo automates manual receivables processes, empowering finance teams to issue digital invoices to accelerate collections.

Reporting and Insights

Peakflo provides the insight you need with configurable dashboards, reports, and KPIs. This allows for real-time customer aging, invoice analysis, and recurring invoice calculations. There are also exception reports that can flag any account anomalies.

Power of system

Peakflo is a complete accounting solution that can be used to manage your entire business. It allows you to track your business cashflow management, automated quote-to order fulfillment, integrated planning, budgeting, and more. You can do more than basic bookkeeping. Use functionality to free finance staff from repetitive tasks and decrease the need for additional staff.

Defining Receivables and Cash Flows

To measure business cash flow, every business must keep track of all its receivables and payables. The accounts receivables make up “Cash In”, while the accounts payable are part of “Cash Out”. Customer accounts receivables are incurred.

If the supplier is a business, it already has cash flow considerations and decides how long it will take to receive payment from the customer. These short-term credits are known as current assets on your balance sheet. They have an inverse effect on cash flows and accounts payable.

The business, for example, has sold $100,000 in 50% credit and half the cash, receivable, within a few months of its sale. The $50,000 in cash sales would be recorded directly as sales over there and is a cash flow to the business. Cash inflow for the business will include $50,000 of rest. Cash inflow to the business will only be incurred if the amount is received in the next year.

Top Features of Peakflo’s Accounts Receivable software

Our software for accounts receivable automates company credit management, cash application and invoicing. It also collects payments and collections. It gives leaders a better way of managing business cash flow and customer relations, and it is more accurate.

The company’s size and goals in accounts receivable Management will determine the best accounting software. Here are some features you get-

Cash flow management

With Peakflo’s software you can automate the account receivable process. You can simplify your sales, billing, and payment processes by consolidating them with one vendor. This will reduce friction and increase your cash flow in your business.

Digital B2B payments

It should be simple and cost-effective to accept and reconcile payments through all major channels, including ACH payments, credit card payments, wire transfers, and EFTs.

Automated credit request

Automated credit applications allow you to move customers faster through the application process. They also collect third-party information and help you make quicker decisions.

Invoice generation Distribution

APIs can integrate with the most popular AP portals to quickly deliver invoices. This allows you to avoid the time and labor involved in manually entering invoice data. Your customers can view and pay invoices 24 hours a day via self-service billing or payment portals

Automated Cash Application

Intelligent cash applications software can provide market-leading match rates even for missing or decoupled money by automating the process.

Automated collection emails

Is it realistic that collectors can email each customer reminding them to pay their invoices? It’s not. Automated email allows you to set up the email template and who should receive it. The accounts receivable software will then do the rest. Your account portfolio will be well looked after.

Automate AR with Peakflo

Peakflo’s automated system for account receivable processes should be reliable and solve all basic AR problems. Features it includes:

  • Smart Payment retries to manage payment failures or delinquencies
  • Providing flexible payment terms to your customers is a great way to retain them
  • Increase your customer base through easy coupon creation and usage tracking
  • A/R dashboards-Use this tool to measure the KPIs that are important, such as AR aging, collections made by dunning efforts and Days Sales Outstanding (DSO).

A comprehensive subscription management and billing solution can take you one step further. Peakflo automated recurring billing, payments and revenue recognition. This allows you to focus on the things that really matter.

Do you want to automate the receivables process?

Automating your invoicing process can help you free up time and make it easier to handle larger volumes of complex invoices. It is important to carefully evaluate the options and choose the right partner.

Many automated accounts receivable solutions take a lot of setup and configuration. A managed service solution such as Peakflo is an alternative. This allows you to focus on your account receivable process and outsources the technical complexity.

Peakflo’s automation can save you countless hours each month, whether it’s to upload manually to customers’ AP portals or to manage paper and electronic invoices through one process.

Automated invoices can also improve the accuracy and timeliness of delivery information. You can eliminate the risk of production errors and copy-paste by pulling data directly from your ERP software.

BENEFITS OF ACCOUNTS RECEIVABLE MANAGEMENT SOFTWARE

BENEFITS OF ACCOUNTS RECEIVABLE MANAGEMENT SOFTWARE

What are the benefits that companies who use account receivable software often see? Simply put automated account receivable software is like hiring the perfect employee. They follow your instructions, don’t let anything slip through, and work 24/7. This is a great idea, but let’s look at the real benefits of account receivable software. This technology can help companies achieve amazing results.

ENHANCE YOUR CASH POSITION

There are bills that you must pay. You will eventually find yourself in dry spells if you don’t pay your bills on time. You can get a clear picture of your cash situation by focusing on your receivables, using best practices, reminding customers when they are due to pay, identifying invoices early in the process and making it easy for them to pay. A few account receivable management software include a statistical cash forecast that is based on the history of your customer’s payments. This will allow you to know how much cash you should get in the coming week.

INCREASE CONTROL OVER CASH AND WORKING CAPITAL

To manage and improve working capital, it is important to understand your cash situation and improve accounts receivable performance. You can manage your working capital efficiently and make the strategic investments you need, such as new employees, capital equipment purchases, facility expansions or new capital equipment. Further, your cash flow will increase by increasing your invoice collection.

INCREASE ACCOUNTS RECEIVABLE EFFICIENCY IN MANAGEMENT

How much time are you wasting trying to find out whom, when and why? How long do you take to get the information that you need in order to resolve your issues and get paid? It’s a lot more than you might think. Advisors claim that companies who use automated accounts receivables management systems to organize and automate mundane tasks are more likely to succeed.

  • From 15% to 6%, you can reduce the time spent prioritizing calls and preparing for them.
  • Reduce the time it takes to resolve disputes by 40% to 13%
  • From 20% to 62%, increase the time spent soliciting customers for payment.

IMPROVE CUSTOMER COMMUNICATION

The A/R management software will make it easier to communicate with customers. You can view account information, create email merge documents, attach invoices and log phone calls from one screen. Best of all, you can save every communication for later review and analysis. Improved communication tools integrated into advanced accounts receivable management software will help you save time and better serve customers.

IMPROVE CUSTOMER SERVICE & SATISFACTION

Customers want to pay you promptly, but it is often your fault that they pay late. You didn’t send them the invoice in time to allow them to make a timely payment or the invoice was damaged. They won’t pay until the problem is fixed. How do these issues impact customer satisfaction? They’re significant. They are significant. Consider the fact that approximately 50% of invoice problems can be attributed to incorrect or missing purchase order information. This is a problem that can easily be avoided. Consider how annoyed your customers will feel if you call them repeatedly for late payment, even if it’s their fault they didn’t receive the invoice in time, or if you continue to exclude their PO from the invoice.

Software for managing account receivables can automate the delivery of invoices to customers and alert you to issues with invoices, such as missing purchase orders. It also provides all you need in one central location, so you can better serve your customers and waste less time. This will help you build a relationship that will result in more customers purchasing your products and services.

REDUCE ADMINISTRATIVE FEES

It is the digital age. Do you still mail statements and invoices? Or do you send them by fax? Enterprise and mid market A/R management applications can automate any activity that doesn’t need human intervention. You don’t need to pay someone to fold and stuff envelopes. Automation can automate these communications for most, if any, of your customers. You will also save paper, toner and envelopes as well as lost time due to this outdated process.

SHORTEN THE SALES TO PAYMENT CYCLE

Distributors and manufacturers incur high costs when they make a sale. This includes inventory and labor. A service provider allocates expensive resources to deliver the service once they have been approved for a project. A business’ ability to pay their customers quickly is the key to success. Your accounting system creates the sales order and invoices. However, your receivable software takes control. Customers can receive invoices immediately after they are created. A built-in customer portal and online payments enable customers to pay via credit card or by ACH. This gives them more options to pay sooner.

MINIMIZE CREDIT RISK

What amount of credit should you give h2to customers? How much risk do you take that they won’t pay off your credit card? Any company that extends credit takes a calculated chance of not getting paid for perishable inventory or time. This is the reality of business today. Customers expect credit terms and competition extends credit, so everyone must do the same. There are ways to lower your risk. Third-party credit bureaus can provide valuable information for potential customers. You can also monitor existing customer relationships to identify customers who are becoming more risky. Many A/R management software programs allow you to access credit reports from the bureaus, file credit applications against account records, color-code customers according to risk, create credit scoring formulas, and set up alerts to notify of customers who make excessive promises or disputes. There are many accounting receivable software applications that are focused on business credit management, but they offer very limited collections automation. Other applications have more credit functionality and are better at managing collections.

Why AR software?

The collections and accounts receivable teams are under great pressure to ensure cash flow. They are responsible for ensuring that payments are made on time and in full, while also maintaining good customer relationships. They also need to constantly assess risk, often with very limited data, and forecast cash flow. Collectors must also have the ability to establish strong relationships with their customers’ accounts payable teams in order to be effective. Peakflo’s AI and automation give collectors the ability to prioritize their work and leave more time for strategic tasks.

Automating collections can help collection managers balance their workloads, which increases morale, efficiency and effectiveness throughout the team.

Who uses accounts receivable software anyway?

Any company that is growing quickly or struggling, wants to reduce days sales outstanding (DSO), decrease collections efficiency by 30%+, increase collections efficiencies by 2X+ and protect and improve customer relations.

Control The CashFlow In Business

Control Your CashFlow In Your Business Like A Pro

Cash flow refers to the money that flows into and out of your company that is income and expenses. Cash flow is the ability to pay your bills, meet your employer and tax obligations and have enough cash available at the right moment.

You can simplify  your business cashflow management by paying more attention to your records and reporting. You can plan for the future by managing your cash flow.

Make a projection or budget for cash flow

A cash flow projection or budget is the best way to ensure you have enough cash to pay your taxes and other obligations. This will allow you to:

  • Check out your cash position anytime
  • Identify any fluctuations that could lead to cash shortages
  • Plan for your tax payments
  • Plan for major expenses
  • Provide additional information to lenders

Accounting for income or expenses can be a great way to keep your business running smoothly. It will give you an overview of when money can come in and go out, and highlight where you might need to spend your money.
When creating your cash flow budget, there are three things you should consider:

Timing

You can’t just set up a cash flow budget and leave it at that. You have the option to make your budget monthly, quarterly, or annually, depending on what is most important or useful.
Keep an eye on your budget and make adjustments as your business grows.
Be aware of significant differences between the budgeted amount and the actual results.

Costs

Include all fixed and expected variable costs. This includes rent, insurance and utilities as well as wages, equipment, and taxes like PAYG (pay as you go) installments or goods and services tax.

Income

  1. To help you track income and expenses, you should estimate your income when you start out.
  2. After your business has been in operation for some time, you can get a better idea about the potential business income.
  3. This amount should be conservative to allow for some flexibility in the event of unexpected or more expensive expenses.

The results of your budget will assist you in making business decisions.

How to maintain cash flow within your business

Cash flow refers to both the cash that enters the business and what is left. Cash inflows include payments received from clients or customers for products and/or services, interest payments, and any other receivables. Cash outflows can be anything the business needs to pay aside from on credit, such as payroll, leases, taxes, and other business expenses. Even though the company’s income statement might appear to be healthy, if the cash flow management is poor, the business could find itself in serious financial trouble.

  • Discuss terms with vendors. If clients have to pay within 30 business days, the terms you negotiate with vendors should be identical. Vendor payments should be made on receipt if client payments are to be made within thirty days. Otherwise, cash flow problems are likely. Never pay in advance. Always pay according to the vendor’s or supplier’s payment terms. Do not pay the vendor until you receive the invoice. Enjoy the 30-day grace.
  • Offer incentives to prompt payment if the customer receives products or services after they have paid for them, you can offer a small discount and bonus if they pay within the first 10 working days. This creates urgency for customers to pay the bill on time. A small discount is sometimes offered to customers in order to make payment quickly.
  • If your company is growing financially, it’s a good idea to open a bank business line of credit. Banks will not lend money to businesses if they see your business in financial trouble. If you secure the line of credit during times of prosperity, you provide a safety blanket for the future and make it easier to get the line.
  • If you order custom merchandise that you won’t be able sell to others, ask for deposits. When custom embroidering 100 T-shirts for a local company, make sure you pay the full amount upfront. This prevents you from having 100 shirts that aren’t usable and creates a negative cash flow.
  • If your inventory is still sitting in the store you will not improve cash flow. Keep track of inventory turnover to ensure that products are constantly leaving your store. Talk to the supplier if you are not satisfied with a product or product line. If that fails, then you may be able to sell the product at a discount so that another more profitable item can be placed in its place.

Understanding how cash flow affects your business

A lack of adequate cash flow management in your business can be one of the biggest reasons why businesses fail. It’s important not only to record your company’s cash flow but also to understand how it impacts your business.
It is important to know the difference between cash and profit. Profit is an accounting principle to achieve financial gain. Cash is your actual money.

Let’s take, for example, that you invoice $500 to a client for work done. Some companies will immediately recognize a $500 profit when they send you the invoice. You will not receive the $500 cash until your collection is complete. It is important to understand the difference between profit & cash because it highlights the importance of collecting outstanding receivables.

Companies that cannot collect past due invoices and reconcile receivables can see a decrease in cash flow. Clients that pay late or not at all can impact your ability to pay your debts and run the business efficiently. If you have negative cash flow due to client payment issues, and don’t pay your obligations on time, this could impact your ability to obtain a loan for the future.

Your company’s growth potential is also affected by cash flow. Positive cash flow means you have more capital available to invest in new machines or locations for your business expansion plans. You have more money to invest the more cash you make. Negative cash flow can also force you to spend your cash reserves on paying creditors instead of investing in your business.

How to Design Professional Invoices That Gets You Paid Fast

How to Design Professional Invoices That Gets You Paid Fast

How to Design Professional Invoices That Gets You Paid Fast

How to Design Professional Invoices That Gets You Paid Fast

The job is complete; you’ve made the delivery. Your client was more than happy to thank you for your work. You’re one step closer to getting paid. But before you knock on your client’s door asking for payment, you must first issue a bill that tells them their due. 

Providing an invoice is one of the best ways to communicate efficiently with your clients, not to mention get you paid on time. Whether you’re going for a traditional or an e-invoice, your professional-looking bill template can help you maintain a steady flow of payments that will keep cash in your pockets.

Why Be Diligent in Invoicing?

The most apparent reason for handing out an invoice to a client is, you’ve guessed it, to get paid on time. An invoice lets your client know not only what they owe but your expectations regarding when they should settle. It clears the transaction up with your client so that, in a best-case scenario, all you have to do is wait until the due date for payment. 

Why is Professional Invoice Design Essential?

A professional invoice with GST and all accurate vital information makes it easy for your clients to understand every transaction and payment detail. Getting all facts factual and clear lets you avoid billing questions and other complications that can delay payment. As we all know, delayed payments stacking up can compromise a healthy business cash flow.

Since your invoice conveys vital information for you and your client, getting it right can be the difference between collecting on time and falling into a muddle of issues that you’d rather avoid. Apart from providing essential details to your client, an invoice custom-tailored to your company exhibits your uniqueness and brand identity in a professional manner.

Traditional Vs. e-Invoice 

In the past, companies had to perform traditional invoicing, which often involved a lot of labor-intensive work. This process requires repetitive postings, reviews, printing on paper, and endless emailing just to get invoices across. When tedious manual tasks are involved, you can almost expect human errors to follow suit. It’s not rare to find invoices displaying incorrect info or ending up in the wrong client.

With the advent of modern technology comes an easier way to conduct invoicing. An electronic invoice is significantly easier to generate and deliver to your client. This uncomplicated way of invoicing is all thanks to accounts receivable automation, which streamlines the whole invoicing process for both you and your client. With AR automation, getting an electronic invoice across is a matter of finding a PO in your favorite platform, clicking a button to generate a bill, then sending that bill over directly to your client. 

What’s Included in a Professional Invoice?

An invoice lists every essential information related to the transaction. Entries include everything from your company and client’s details, your provided goods or services, taxes (for an invoice with GST), and the payment term. 

Here’s are the essential parts that make up a professional-looking invoice by Xero: 

an example of an e-invoice with all the essential elements included

Apart from laying out all vital information, make everything look clean and concise. Having a cluttered template design can make you look unprofessional. It can even confuse clients as to which detail is what, leaving you unpaid until they sort it all out.

Thankfully, you won’t have to worry about a cluttered design when generating an e-invoice using AR automation software. Our platform here at Peakflo allows you to leverage pre-written professional templates that you can create and dispatch with a click of a button.

Designing Professional Invoices that Gets You Paid

 

Here are the steps to designing a clean, unique, and professional-looking invoice that prompts an early payment: 

1.Outline a Clean Format

Getting a professional-looking invoice begins by designing a clean and uncluttered template. This step is when you create an outline that organizes every vital information in your invoice. 

Ensure every line item flows smoothly throughout, from the header to the terms at the bottom of the document. Use consistent spacing to make the details easy to digest. You may also want to keep your templates within the ideal 8.5” x 11” paper size since some clients prefer to print a physical copy for record-keeping.  

2. Reflect Your Brand’s Identity

You make all kinds of efforts to make your brand stand out whenever possible. Why not go as far as your invoicing? Your invoice already has your logo. You can leverage it entirely to promote your distinct branding.

If your company uses a particular voice or tone, you can incorporate that when writing terms and descriptions. If you use distinct colors and fonts, integrate these in your invoice design. Remember, every material you put out there should mirror your brand’s unique personality. 

3. Make it Easy and Simple. 

One of the essential features of a professional invoice is clarity and readability. If you want to get paid faster, make your template free from distracting elements that come with a poor design, like confusing itemizations and inconsistent layouts. 

Line up each item in a way that will seamlessly walk your client through the details. You can use grids to separate your line items, with columns separating specific entries for each item, so your clients quickly see them at a glance. 

Here’s another sample from our selection of customizable pre-written templates here at Peakflo:

4. Highlight The Essential Aspects

Though every detail in your invoice is vital, some needs stand out more than others. This is the case with your payments terms, total balance, and due dates. You may have gotten your itemized list of services right, but these elements will ultimately be the ones that will provide notice for your customers to pay.

  • Outstanding Balance and Due Date

Typically located just below your services list, these line items tell your customers how much they should pay and when. You’d want to ensure that these two pieces of information are clear as day and error-free. 

  • Payment Term Details

This portion outlines details such as your accepted payment methods, your late payment fee policies, and any other particulars related to the payment for your work. It may not be as essential as the two above, but you still need to find a way to make this clear-cut.

  • Leverage AR Automation

The end goal of AR automation software is to streamline functions that help you maintain a strong business cash flow. One crucial aspect that determines overall cash in-flow performance is invoicing. A robust accounts receivable software allows you to craft beautiful and clean-looking professional invoices instantly, with pre-written templates that you can tailor to your company. You won’t have to worry about coming up with a seamless format that perfectly suits you.     

How Can Peakflo Help?

 

Peakflo allows you to invoice effortlessly., saving you hours trying to figure out your perfect invoice. 

With Peakflo, you can: 

  • Create Personalized Invoices. Customize everything from top to bottom for a seamless invoicing experience. You can attach working files and notes whenever you need them.
  • Instantly Verify Invoices. You can validate and approve invoice drafts before they come out, all inside one coherent portal.
  • Predict Cash In-Flows. Peakflo offers a forecasting feature that predicts cash performance based on past results. Gain deep insights into your collection efficiency and overall cash flow health.

Peakflo connects to your favorite accounting software and is 100% free forever. Start improving your business cash flow today! 

generating a payment reminder using accounts receivable software

Payment Reminder Templates That Actually Work

generating a payment reminder using accounts receivable software

If you’re running a small-medium-sized enterprise, you’ve probably been there. You’ve set the agreement clear, signed the deal, had a great conversation with the client, only for them to fall short on the due date.  

Catching up on late invoices is one of the most daunting ordeals SMEs have to go through. One way to lessen overdue settlements from clients is by being consistent in sending out payment reminder emails.

In this article, we’ll reveal everything you need to know about payment reminders, including how you can craft your well-thought-out letter and what accounts receivable software can do to ease the process.

Why Are Late Payment Reminders Important?

Nobody likes to pester anyone, let alone a client. But, as an SME that relies on modest capital, you may not have the luxury of waiting out on the payments you deserve right now. 

Every business thrives on a healthy cash flow. Take that away, and your company may find it hard even to remain afloat. Effective cash flow management is vital, which is why many SMEs opt for an automated cash flow system. 

Sending out well-crafted notices or reminders is integral to managing cash flow successfully. Reminders allow you to communicate clearly with your clients and help you encourage them to pay you on time.

When is The Perfect Time to Send Payment Reminders?

The ideal time to send out payment reminders depends entirely on the nature of your business. But, regardless of the type of business you’re in, timing is essential to keep the invoice fresh in your client’s mind. 

Many companies follow the Net 30 and Net 45 terms (sometimes even going as long as a Net 60). Whichever term you’ve agreed upon with your client based on your standards, it’s a good practice to send a payment reminder email seven days before the due date. This practice gives your client a polite cue about their upcoming invoice settlement. 

Now, this initial nudge doesn’t work for everyone. There will be those who’ll go past due without giving so much as a single glance. In this case, you’ll have to keep sending out reminders, at least once a week, before you call it quits and hand the account over to collection or legal. For many contracts, 60-90 days should be ripe for collection to take over. 

Having robust cash flow management software, like the one we have here on Peakflo, lets you effortlessly automate payment reminders, not just through email but across several channels, significantly easing the way you reach out to customers. 

How Should I Write Late Payment Reminders?

Companies generally send out a payment reminder a week before due. The succeeding ones will be after the client falls short of the set date. Now, payment reminders aren’t all the same. The type of tone you’d want to use will depend on the severity of the situation. One essential thing to remember is to keep it simple and easy to comprehend, going straight to the point. 

Invoice is Due in 14 – 7 Days – Friendly Tone

For a good number of clients, a friendly reminder could be all it takes. After all, your invoice can easily get lost in the dozens of other things your client company looks after. So for this payment reminder email, use a friendly tone that feels you’re just there to provide a light heads up of their upcoming due. 

Here’s an example template to give you an idea: 

Subject: How’s it going? Just a friendly reminder for invoice #256

Body:

Hi [Client’s Name], 

Thank you for choosing [Company]. I hope you found your purchase of our [Product/Service] extremely helpful.  

This email is just a friendly reminder that your payment for invoice #256 will be due next week on December 21st. 

You may send your payment to us via [Payment Methods].

If you have any questions about your payment or our contract, please don’t hesitate to let me know.

Regards, 

[Your Name and Company]

Invoice is 14 Days Overdue – Firm Tone

Now that the invoice is two weeks past due, you’ll need to adopt a more serious tone, letting the client know that you need them to settle the invoice. For this payment reminder, be sure to include a notice about any additional late fees your client can potentially incur.

Here’s how you can use Peakflo’s variables to auto-fill personalized details in your payment reminder email.

Subject: Reminder: Invoice{{invoiceNumber}}  is {{invoiceDaysOverdue}}Days Overdue

Body:

Dear {{recipientName}},

This email serves as a reminder that we have yet to receive payment for invoice {{invoiceNumber}}. 

According to our records, invoice {{invoiceNumber}}, due last {{invoiceDueDate}}, is now {{invoideDaysOverdue}} days past the original due date. 

Be informed that a late fee may be incurred in your outstanding balance for invoice {{invoiceNumber}} if we have not received payment after 30 days past the initial due. Please clear the payment as soon as possible to avoid incurring any late fees.

Regards,

[Your Name and Company]

Invoice is More Than 30 Days Overdue – Urgent Tone

Clients that go 30 days past due can pose a significant threat to your healthy cash flow. These are the accounts that you’d want to collect soon since further prolonging them can gradually lessen your chances of actually getting paid. 

For this email reminder, you’d want to give it a feel of a final notice. Let the client know about the consequences and the actions you’ll take if they don’t pay past the last cut-off date. 

Subject: URGENT: Invoice #256 is 30 Days Overdue

Body: 

Dear [Client’s Name],

Your payment for invoice #256 is one month (30 days) overdue. Therefore, we require that you address this issue as soon as possible.

This invoice, issued on [Issue Date], was due last [Due Date]. Since 30 days have passed since the initial invoice was due, a late payment fee of [Interest Rate] has been applied to the outstanding balance.

Please be advised that if we do not receive your payment for the said invoice within 15 working days, as per policy, we will have to turn over this account to a collection agency.

Regards,

[Your Name and Company]

After sending several email reminders to the client and still to no avail, you may need to seek out the help of a third-party collection agency. Depending on your policy, you could do this step after the account went 30-90 days past due. As a last resort, you can always threaten legal action, which is enough motivation to settle for some clients.

The Benefits of Automating Reminders

You’d want to have a good process in place that immediately sets in motion as soon as an account goes past due. You can do this the old-fashioned way, which includes manual monitoring and countless hours of administrative functioning, or you can use accounts receivable software to help ease not just sending out payment reminders but all aspects of invoicing.

How Peakflo Helps

There are many reasons to automate accounts receivable – one of which is smoother invoicing. Remember the conventional way of setting up an invoice reminder system? Yes, that can be slow and tedious. By incorporating accounts receivable software into your AR management, you’ll leverage these powerful features for your invoicing process:

  • Create Professional Invoices

Enjoy seamless invoice customizations where you can easily tailor every line item, from discounts, tax rates, and more. Validate draft invoices before sending them over to your customers.

  • Generate and Automate Invoice Reminders

Create invoice reminders based on your specific scenario from a selection of pre-written templates. You can then opt to send scheduled or ad-hoc reminders across many channels, like email, SMS, and instant messenger apps. Your entire team can comfortably utilize these features under one centralized dashboard.

  • Predict and Monitor Cash Inflows

Predict cash inflow based on past invoice performance. Gain deep insights into your AR process and the current condition of your cash flow.

Peakflo can seamlessly complement your favorite accounting software and is 100% free forever. Start benefitting from an automated cash flow system today!

The Ultimate Guide To Business Financial Planning

The Ultimate Guide To Business Financial Planning

 

Every business wants to accomplish its own set of long and short-term goals. Yes, some goals are more relevant than others, and the hierarchy is unique to the organization. Still, one of the biggest things companies aim for is financial stability for the long term.

Having a comprehensive financial plan is crucial if you want your business to go from where it is now to where you want it to be. Many factors affect a business’s finances, from decisions in management to profits to accounts receivable turnover. As owner or finance leader of the firm, you’d want to make sure that your organization always stays on top of its finances.

This article will discuss the significance of financial planning and how you can create one for your business. 

What is Financial Planning? 

Simply put, financial planning involves a comprehensive evaluation of your company’s current financial health so you can lay out financial objectives and the strategies your company will use to achieve those objectives. You can use these evaluations to create favorable projections that your company can aim for. Typically, a financial plan is a component of your overall business plan, which you tweak over time to align with your current goals. 

In your financial plan, company management and investors can view critical information regarding your company’s growth strategy. It includes essential details such as sales projections, cash flow projections, your expenses budget, and other information that can guide those involved to make informed decisions. As more and more companies embrace digitization, the use of financial management software in budgeting and planning slowly becomes the norm. By pairing it with robust accounts receivable management software, your business increases its efficiency in cash flow management.

Why is Financial Planning Essential For Your Business?

Every business experiences ups and downs as it goes along its journey. With the pandemic still going on, organizations must work harder and innovate to remain standing. A recent survey shows that six in 10 Singapore businesses are barely making ends meet amid the pandemic-induced volatility. When things go downhill, you must find a way to pull through. Your financial plan can come in handy as you navigate the rollercoaster of running a business. It can serve as a road map to your business’s monetary success, nudging you about your short-term and long-term financial objectives from time to time.

A financial plan sets your short and long-term financial goals in a timeline that you can follow. By organizing it into small chunks of steps, you can focus on single actions that accumulate into significant gains.

What Does Your Financial Plan Tell You?

Whether you’re a new business or an established corporation, keeping track of your financial growth and success is vital. Your financial plan reveals two principal details: your current financial data and your expected financial outcome in the future.

Your company’s financial plan lays out the following:

  • Where your business is right now in terms of finances and where you want it to be. 
  • The strategies you will use to generate your ideal income 
  • Your expected profits and future revenue stream
  • How your business will keep ahead of the competition
  • Your projected business growth on an annual basis
  • How your business will make the most out of existing capital and assets
  • The current and expected state of your cash flow
  • How you will handle common problems such as dormant financial receivables  

How Do Financial Plans Guide Your Company?

All this information is vital for you, your team, and various entities and individuals who can provide value for your company. Complementing your business plan with a comprehensive financial strategy can help justify why your business is good. 

All of the information found on your business’s financial plan allows you to:

  • Attract potential investors and funding to your company
  • Secure business loans from lenders
  • Have benchmark forecasts that you can strive to meet and exceed.
  • Better allocate resources and manage liabilities such as debt
  • Determine if your business is still viable or not
  • Protect your business by planning for the unexpected.

If you’re just starting out on your entrepreneurial journey, your financial plan can inform you whether your business is feasible or if you’re just taking an uncalculated risk. 

How to Create a Solid Business Financial Plan?

Your financial business plan should properly supplement your company’s overall business plan. Just like every other section of your business plan, your financial plan is not set in stone. You can modify it anytime for the right reasons. Remember that while the details written on your financial plan are crucial, at the end of the day, what you do with those details is what counts the most.

Here are the steps you can create or recreate your company’s financial business plan:

1. Conduct Research and Develop a Strategy

Everything starts with doing your homework, especially if you’re a startup since you won’t have any past data to gather information. This process goes hand in hand with the development of your overall plan. Before calculating any information to make predictions on the financial plan, you must put every other integral business component in place. This includes your business’s:

  • Operating procedures for activities
  • Products or services
  • Target audience
  • Market research
  • Market strategy
  • Predefined budget and expenses 

After outlining the core components of your business, you can now develop a plan to carry it towards financial growth using a predefined budget. By laying out what your company wants to achieve, you can determine the most productive steps towards it. You can answer questions such as how you’ll acquire financing, what level of talent you would need to source, and how to improve accounts receivable turnover. 

2. Create Financial Projections

Your business must have something good to look forward to in the future to attract investors. Financial projections show an estimate of your future revenues, expenses, profits, and net worth. It provides three essential points, a forward-looking income statement, a balance sheet, and a cash flow statement.  

  • Income Statement

A projection of this financial statement shows your anticipated revenue, expenses, and profit after the end of a specific period. By calculating your expected sales and the cost of those sales, you can reveal if your business can be sustainable.

  • Balance Sheet

A balance sheet forecast reveals your anticipated assets, liabilities, and owner’s equity during a particular point in the future. Ultimately, it shows what you expect your business to be worth during that future period.

  • Cash Flow Statement

This forecast shows the outlook of cash movement in and out of your business. By projecting a smooth cash flow (more money moving in than coming out), you can impress investors and lenders to stand by your company. 

Cash is what will eventually drive your company forward. At any point in your business’s life, having excellent cash flow gives you more flexibility to do the things that allow you to expand and grow. 

By examining past and present results to forecast growth, you can set realistic goals, formulate sound decisions, and tackle unexpected challenges. When gathering data and organizing your projections, financial forecasting software can help ease the process. 

Here at Peakflo, we have integrated our advanced accounts receivable management software with an intuitive forecasting tool, making it easier for you to anticipate your business’s most valued KPI – liquidity. 

3. Keep Track of Progress

Having a benchmark to aim for allows you to create straight pathways towards the results you want. After expressing your goals in clear and definite numbers, you can now monitor your progress and determine if it’s spinning in the right direction. 

You can always generate financial statements at any time and start comparing past results to your current. Yes, compiling detailed reports on paper can be intimidating, especially if you have to do it on the spot. However, you can simplify the process by utilizing financial management software to generate reports and forecasts quickly.  

4. Plan for the Unexpected

It’s not uncommon to run into uncertainty when running a business. But, now that you have developed your financial game plan and its supplementing forecasts, you can now review every detail to identify vulnerabilities and weak spots. For example, suppose you know that your business will eventually have to deal with b2b accounts receivables. In that case, you can brainstorm ways to maintain cash in the bank early on so that when cash flow takes an unexpected twist, you’ll have enough reserves to keep everything going.

Enhance Financial Planning with Business Financial Planning Software

Conventional tools such as spreadsheets might work if you’re just starting out in getting your finances together. However, as your business grows and expands, so will the demands for more streamlined financial management and team collaboration approaches.

By complementing your financial planning and management with software, you can begin to automate tasks that would otherwise take more time and effort. You’ll also be able to seamlessly retrieve gathered data to create your essential reports and projections.

How Can Peakflo Help?

Integrating cash management and AR platform with your existing financial tool puts you in a better position to maintain your ideal cash flow. With Peakflo, you can increase the efficiency of your AR operation, ultimately allowing you to get paid sooner rather than later. We also offer valuable tools that improve team collaboration and productivity so you can be sure that your finances stay in the right direction.

Connect your accounting software and start automating your accounts receivables with Peakflo today!  

What Makes a Great Modern CEO

What makes a great modern CFO?

Today’s CFOs face an unprecedented business environment. As technological innovations take over accounting and finance, chief financial officers have become the harbingers of digitization to the finance function. 

As a CFO, your role is to employ critical thinking and leadership to influence the company’s direction for the better. To provide the most value for your company, you also must have a knack for technology.

In this piece, I will share the essential CFO qualities by outlining the traits that define a successful and potent CFO.

What Makes a Great Modern CFO?

A great CFO or finance manager is a tech-savvy strategic thinker who knows how to handle risks and unforeseen challenges. They go beyond just looking at finances and become an indispensable problem solver and a key player in ensuring their company’s success and progress.

Chief finance officers continually learn and improve. Regardless of industries, they have a lot of things in common. Here are the most vital qualities great CFOs possess and value.

1. Flexibility and Adaptiveness

Change in the way we do business happens all the time. Like how great companies adapt to sudden disruptions in the market, great CFOs adapt well to challenging new business environments. Since CFOs are already accomplished future predictors, especially regarding their company’s financial positions, they have little trouble adjusting to the changes that come with those predictions. 

Technology is transforming the way organizations manage their finances. The best CFOs do not shy away from using technology but embrace its benefits. From cash flow analytics to AR automation platforms, they utilize various tools to streamline their finance team processes and increase productivity.

2. Exceptional Cash Management

Cash Flow is the lifeblood of any business. Exceptional CFOs understand this truth on a deeper level. They know their company’s cash position and can accordingly act when things go wrong. It’s only natural for company owners to push their accounting and finance teams to create better solutions to cash flow problems. As CFO, your task is to direct this team efficiently towards extraordinary cash management and problem-solving. 

Cash flow management is one of the most vital aspects of running a successful company. The way CFOs conduct this operation can make or break a business. To improve cash position, they always keep a close eye on cash, developing financial reports and forecasts while brainstorming ways to cut costs and protect company profits. 

AR automation can significantly improve cash management, which is why Peakflo has designed a complete AR automation platform, offering easy-to-use automated workflows to improve AR performance and get paid on time.

3. Strong Understanding of the Value Chain 

Effective chief financial officers aren’t just number crunchers. They know their company’s full range of activities end-to-end, from customer feedback to supplier relations to the day-to-day tasks of office workers. Knowing the value chain by heart paints a clearer picture for CFOs to develop sound financial strategies to present to the company’s leaders. 

When tending to the company’s finances, efficiency is vital. Efficient CFOs make great efforts to influence the company’s culture towards being finance-focused. Having a finance-first priority means that every activity within the value chain is geared towards improving the company’s bottom line and cash flow. Achieving this requires cross-organizational collaborations and excellent communication skills.  

4. They Bring Others On Board

Successful CFOs don’t stand alone. They are great communicators, connecting well with the finance teams, other departments, higher executives, and shareholders. By having the right collaborative skills, they can help direct resources to where it is needed most. Depending on whom they communicate with, they can comfortably tailor their communication style. However, they always maintain transparency and sincerity since they believe that doing otherwise can lead to more problems than solutions.

To ensure exceptional cash management, they focus on building and strengthening their finance team, with members that can complement each other’s weaknesses, including their own. Hardened CFOs are always on the lookout for great talent since they know from experience that even small gaps within a team can lead to big problems in the future.

5. They Think Forward

Leading CFOs have excellent perceptions. They always look beyond what’s in front of them to paint the clearest vision of where the company’s finances will be in the next 18 or 24 months. They also understand how technology can make operations easier and give their company a competitive edge. However, this doesn’t mean they aren’t willing to roll up their sleeves and do dirty work if it means delivering value to the company.    

Being a methodical forward-thinker means setting accurate evaluations for your company’s future cash position. This evaluation can serve as your firm’s benchmark, allowing you and your team to create the most efficient game plan to hit and exceed it. Peakflo offers a seamless way for CFOs and their finance teams to develop exact cash inflow forecasts based on their recorded cash flow history. Providing finance leaders access to advanced and accurate reporting remains one of our top priorities.

Forward-thinking CFOs or controllers also ensure that their finance team shares their dynamic and progressive qualities. Since today’s business environment requires finance teams to adapt well to what-if scenarios beyond the financial reports and forecasts, they provide the proper guidance and tools to ensure their team maintains productivity and efficiency. 

6. A Knack for Automation and Analytics 

Using the right technology can make a massive improvement in how your finance teams conduct their day-to-day activities. The right tools can increase efficiency and productivity in several ways, from automated workflows to easing financial planning and analytics. Ultimately, technology can save you and your team countless hours of work, saving you money and resources in the long run.

Automated Workflows

Your finance team’s primary focus should be managing your cash flow to ensure that money is always on hand to meet the company’s daily needs. But, most finance teams get stuck in a loop of repetitive, time-consuming processes that you could otherwise automate. Technologies that provide automated workflows allow you to eliminate tedious manual tasks. This means that your team can save more time and energy on far more critical things, such as developing an effective AR and AP strategy.

How Peakflo Helps CFOs and Finance Leaders

Chief financial officers, controllers, and finance managers regularly analyze vast amounts of information as they flow in and out of the company. One of the biggest challenges these leaders face today is structuring workflows in an environment where plans and data must be generated as quickly and accurately as possible.

Peakflo has developed a way for finance leaders to get a clear view of their company’s finances in one easy-to-use platform, with features that enable you to increase your team’s productivity and make it easier for customers to pay. We’ll simplify all of your A/R and cash collection processes so you can improve your most valued driver – cash flow. 

Invoice Reminders

What are Smart Invoice Reminders, and How to Automate Them?

Streamline accounts receivable, from invoice issuance to collections

Invoice Reminders

 

Every organization would love to get paid early. On-time payments from customers allow businesses to improve their handle on cash flow significantly. But, let’s face it, this isn’t always the case. For many firms, the biggest problem centres around uncollected sales. Businesses facing delayed payments have recently been on an upswing throughout Asia, and it’s no different in Singapore. A 2021 survey revealed that 52% of Singapore-based companies are having trouble collecting payments. Yes, ARs are assets, but you may fall short of keeping things afloat without cold hard cash.

To ensure that customers pay on time, the company’s finance team must employ a good AR management strategy. It’s undeniable that one of the best features of a flawless system is invoice automation software.

What are Invoice Reminders?

Promptly sending out impeccable invoices contributes to getting you paid on time. But, more likely than not, there will always be those few customers who fail to meet your payment deadlines. For these select customers, you’ll want to make sure that you’re able to send out professional payment reminders as efficiently as possible. In fact, you don’t even have to wait until payment is late to send out a friendly customer-centric notice.

How Automating Invoice Reminders Helps in AR Management

Invoice automation software helps you leverage pre-written reminder templates that you can send either impromptu or on a scheduled basis. You can send out these templates through several mediums such as email, SMS, instant messenger apps, or via physical mail. 

AR management platforms such as Peakflo provide management teams with a centralized workspace where they can easily create and send reminders and notices with a click of a button. We provide a way to quickly examine the status of your invoices at a glance and simultaneously view their communications and payment history. 

How to Automate Invoice Reminders

The conventional way of setting up an invoice reminder system can be slow and tedious. At times, it can even compromise your smooth cash flow. When you automate your reminders, all your outstanding accounts are automatically sent with notices on a pre-set date, using pre-written templates that you can effortlessly fill out with details. 

Going automated is easy, and there are a lot of tools out there that your company can utilize. Your plain old accounting software can be reliable in itself. But, if you want to optimize account management with a laser focus on payment collection, complementing your accounting tool with robust accounts receivable automation software is the best way to go.

Invoice Reminder Templates + Examples

Whichever channel you choose to send out payment reminders, your chosen invoice automation software should have plenty of drafted templates that can help smoothen out the process. 

Here at Peakflo, we’ve already prepared effective templates that you can easily access on our platform. Whether the account is due in a week or already a month overdue, you can trigger spontaneous reminders on various mediums and even modify your expected payment date. Our templates feature different tones custom-fit to your specific purpose and customer.

Customizable Invoice Reminder Templates

How Accounts Receivable Automation Keep Cash Flow Going

Traditionally, AR teams have to do detailed manual reviews of sales invoices, often many times over, to ensure that each invoice speaks precisely what the transaction entails before they reach the customer. Any wrong information, such as pricing errors and incorrect customer recipients, can potentially delay payments. This typical process is often costly and time-consuming, costing hours and hours of manual work.

AR automation introduces a simpler way to manage your accounts. Fundamentally, it lets your AR management team automate these repetitive tasks that consume enormous time and resources. Since everything is digitally operated, it helps reduce costly and avoidable human errors, ensuring a smooth invoice workflow. 

A Better Way to Manage Your AR

Employing accounts receivable automation software with all its features can make life easier for you and your finance team. This technology not only helps big companies but small businesses as well. By automating your invoicing, you can slash a significant number of work hours for your finance team, giving them more time to focus on strengthening your AR collection strategy and improving cash flow management

Streamline Your A/R Processes

Having the right technology at your disposal can ease the burden when it comes to collecting what you’re owed. 

Peakflo offers a tool that allows you to increase the efficiency of your A/R management team. With features that enable you to raise productivity, automate invoice workflow, and make it easier for customers to pay, you can simplify all of your A/R and cash collection processes under one high-performing digital platform.