5 Invoicing Best Practices for Better Cash Flow

Invoicing best practices

Cash flow management – balancing what is coming into your bank with what is going out – is a challenge for freelancers and small business owners. You may have customers who have purchased services, and that’s great, but if those customers take their time to pay, you may find yourself dipping into cash reserves to meet expenses or operate.

There are 5 invoicing best practices you can follow to ensure that customers pay you faster, reducing receivables and getting more cold, hard cash into your bank account. Read more

How to Increase Brand Loyalty and Customer Lifetime Value

Customer lifetime value

Customer Lifetime Value (sometimes referred to as CLV or CLTV) is oft discussed by startups but is frequently ignored by freelancers and small businesses. CLV is a prediction of the net profit a customer will provide your business over the course of your relationship with them.

While somewhat complex equations can be used to calculate CLV, understanding that there are actions you as freelancers or small business owners can take to increase that lifetime value is more important than the equations that guestimate CLV. Read more

Use Sales Closing Techniques “Scarcity and Urgency”
to Convert an Estimate to a Purchase

While estimate deadlines are practical they also have a psychological impact. They are a sales closing technique that can increase conversions of those estimates into actual sales (invoices).

From a practical standpoint, first and foremost, setting estimate expiry deadlines protects you from being forced to honor an old estimate – one that someone decides to act on X number of months or X number of years after you send it. Read more

What are Business Financial Statements?

Accountants use financial statements for measuring and monitoring business performance, as evidence of a business’s value, and at tax time.

The three most important financial statements are the balance sheet, income statement and statement of cash flow. The balance sheet is a snapshot of a business’s financial position at a point in time. The income statement provides a summary of revenue, expense and profit for a defined time period, usually a month, quarter or year. The statement of cash flow is a summary of cash inflow and outflow by source for a defined period. Read more