Tips for tomorrow’s business owners: Invoice promptly and keep track

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With almost half (49%) of British children proud owners of a second income on top of their pocket money, in the form of a “business”, it’s not surprising that we’ve a generation of entrepreneurs at our heels. Indeed, nearly a third (32%) say that they want to manage their own business in the future. Blogging/Vlogging is the most popular business of choice.

However, much like the small businesses of today, the entrepreneurs of the future must know how to properly manage their cash flow. If the sentiments of their parents are to be believed, too few of these budding business men and women understand the merits of budgeting and saving. Over a quarter (26%) of parents say their child spends their money as soon as they get it.

Of course, for a child to be able to spend their pocket money, they need to have received it. It’s a step that many companies today also fail to take into account, with 22% of businesses invoicing only within a month of a completed job. Remember sending your invoice is only the first step in the cash flow process. The sooner you’ve invoiced, the quicker you will be paid.

Here are some other quick tips to ensure your invoicing process is as seamless as possible

Include all details. Not just your company number, address and VAT number, but purchase order (PO) number as well
Send your invoice to the right person. It might seem obvious, but there’s a good chance the person who commissioned the work isn’t the person who pays the bills. Always ask for the relevant person to invoice.
Check your format. PDFs are accepted by most people whereas Word documents, due to their editable nature, are usually returned.
Keep accurate records. It can be easy to forget exactly what materials and time might have gone into a specific job. With clear records you can invoice (and be paid) for the appropriate amount.

Click here to find out how to make managing cash flow child’s play, and watch our video on the top five rules to follow to put you and your small business on the path to success.

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