Cash flow is to a business what oxygen is to your body - absolutely essential. Ensuring liquidity is one of the most important things you can do for your company. Without it, you can't pay your people, your bills or yourself. Nor can you invest or grow your business. All of this might seem blatantly obvious, which makes it all the more mind-boggling to see just how many companies take such a simple yet vital part of business for granted. Many sacrifice their liquidity by failing to bill their clients early enough and by having sub-par, outdated tools to create invoices and follow-up payments.
Early and consistent invoicing is one of the most effective measures you can make in your business to increase liquidity and make your company more resilient. Having the right tools for the task will help to make the operation simpler and cut down on time consumption, allowing you to invoice both faster and earlier with a better overview of what's due. Below, we'll look at how Moment helps you create and send quality assured invoices and make sure they get paid.
Time record approval
If you bill by the hour, you will most likely need to register and approve time records. Surprisingly, many offices still do manual time record approval by printing out reports or invoice drafts, then hand them out to project managers for adjustments. At the end of the day, they will gather all the papers and manually re-enter descriptions and hours in their project tool. This is an incredibly old-fashioned, time-consuming, and error-prone way of checking through hours.
In Moment, all project managers can see and adjust time records as soon as a coworker has made a registration. If the description is lacking or there is a mistake, you can send the time record back to the coworker with the click of a button and add a comment about what needs to be changed. The coworker will receive an e-mail with the comment and a link directly to their timesheet. Perhaps most importantly, you can adjust billable time separately from worked hours, maintaining correct project costs as well as banked hours for team members. We typically advise project managers to go through time records once per week to make sure they're in accordance with contracts, the progression of the project, and client expectations.
Electronic invoicing, or e-invoicing, has been around for nearly 20 years. This allows you to send invoices directly to your client's invoice management service (typically an accounting tool) for super easy approval. However, many companies have failed to implement this extremely efficient standard, and have preferred to stick to good old-fashioned PDF or even printing invoices which can cost themselves and their clients a fortune.
Moment supports e-invoicing through both the EHF, PEPPOL, and GLN-standard, allowing for e-invoicing in all European countries, or where these standards are supported. When it's time to bill your clients, all you have to do is send the invoices with the click of a button and wait for the payments to come in. Should you require some last-minute adjustments, like adding in a comment or descriptive text, the invoice can easily be edited before sending. You can also select if hours specification and project expense attachments should be included or not.
Payment registrations and reminders
Most banks today offer a solution to send out payment status updates that let you know which invoices have been paid. This service is often referred to as an "OCR agreement". Surprisingly, many companies choose to manually register payments by going through bank account reports. Yet another time-consuming and unnecessary operation.
Since Moment can receive OCR files directly from the bank, any payment will be registered automatically and update in the customer ledger in Moment. If an invoice is not paid within the due date, it will be marked as overdue and you can send payment reminders by e-mail directly from Moment, differentiating between 1st and 2nd-time notice. As soon as payment is registered, any corresponding project accounts are also updated and visible to project managers.
Export to your accounting system
After you're done invoicing, you might want to register the data in your accounting system. Without proper integration or file export, any bookkeeping data will have to be manually punched again, wasting precious time and energy.
Since we're aiming to eliminate all unnecessary time wasters, we integrate Moment with all bookkeeping systems our clients use - so long as their systems allow for integrations or file imports. This way, any data relevant for bookkeeping is transferred automatically. This typically includes customer and project data, invoice numbers, lines, and amounts. Moment can also import project expenses from your accounting tool, allowing you to invoice expenses to your client if needed, and maintaining correct project accounting.
We frequently hear stories from our clients about cutting their invoicing time in more than half after switching to Moment. This saves a tremendous amount of resources, which can be freed up for other operational tasks. An added benefit is of course increased liquidity, since you will invoice earlier, send payment reminders more frequently and have time and energy to notice hours and fees you might not have otherwise.
If you're looking for an easier way to bill your hours and increase your company's liquidity, consider booking a demo of Moment today.