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Xero invoice processing

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Last editedOct 20222 min read

Every business benefits from a fast and accurate billing process, and Xero invoice processing software ensures that invoices are sent quickly so you can get paid quickly. You can also refine your billing processes to improve your chances of being paid on time, so here is our guide on how to improve invoice processing.

1. Devise a billing schedule

Invoicing should always be a priority to ensure money is constantly flowing into your business. Assign a day and time each week to complete all outstanding invoices, without letting any slide until the following week.

Strict and regular invoicing lets you stay on top of everything while communicating to your clients and customers that you expect prompt payment. Always send invoices for odd jobs and one-off payments as soon as the work is complete.

Also make a habit of calling a new customer when billing them for the first time, to check that your invoice has everything they need. It appears a courtesy, but it actually removes any excuses for late payment. If a customer is late paying, courteously contact them the day after the due date to ask if there are any issues you can help with. This signals that you keep an eye on due payments and expect prompt payment.

So a basic billing schedule should include:

  • weekly invoicing as a priority

  • immediate invoicing for one-off jobs

  • courtesy calls to new customers

  • courteous calls to late-paying customers

2. Make invoices clear and concise

When sending an invoice, make it absolutely clear what the payment is for. Include this on the invoice, if possible with text from the original agreement, making it easier for the customer to recognise what the payment is for. This prevents disputes while encouraging prompt payment.

3. Use invoice templates and billing software

Invoice templates from spreadsheet software save you time and energy. Save templates with pre-filled information for specific customers and include certain formulae calculating extra charges and taxes due.

Use specialist invoice-creating software, which automates parts of the process, such as learning the price of your products and services or calculating the various taxes. This dedicated invoice software automatically prepares paperwork for filing, while also completing daily bank reconciliations to let you know which invoices have and haven’t been paid.

With the Xero invoice processing software, send and track invoices from anywhere using your phone. This provides versatility in managing your invoices, especially if you spend a lot of time out of the office.

4. Offer online invoicing options

One excellent way to receive your money faster is by offering a convenient payment method such as online invoicing. GoCardless customers get paid 47% faster on average.

There are many payment options, so be versatile, offering debit and credit card or ACH transfer, and maybe also PayPal.

Offering an online payment option such as GoCardless integrated withXero invoice processing may be the best solution for customers who are slow with their payments.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.

Over 85,000 businesses use GoCardless to get paid on time. Learn more about how you can improve payment processing at your business today.

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Interested in automating the way you get paid? GoCardless can help
Interested in automating the way you get paid? GoCardless can help

Interested in automating the way you get paid? GoCardless can help

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