How Prospur’s “Partial Invoicing” Feature Will Help Small Business OwnerEditorial Staff
September 14, 2022
Small and medium businesses (SMBs) are constantly dealing with multiple challenges, one of which is efficient invoicing.
By having a CRM with invoicing features, SMBs can have all the data in one place, run revenue analytics, and save time wasted in handling multiple software.
But that is not all.
You can take it a notch further with the partial invoicing feature that can uphold payment integrity at every step of the order fulfillment journey.
What is Partial Invoicing?
If your order fulfillment comprises a single transaction, a simple invoicing feature is sufficient. But many businesses fulfill the order over a longer duration and in stages.
For example, a small construction or interior design firm may want to issue partial or interim invoices as they complete their commitments.
This feature was available only in enterprise-grade CRM systems. But not anymore.
This article explains how Prospur’s CRM and partial invoicing features will help small and medium business owners.
How Will Partial Invoicing in Prospur CRM Help SMBs?
Small and medium businesses often do not have large cash reserves and may depend on payments at regular intervals for their operations. Here are some of the benefits of partial invoicing for SMBs –
#1. Better Cash Flow
Cash flow is vital for any business, big or small. Many businesses that deliver their services over several weeks or months agree on a payment plan with the client while signing the contract.
Regular cash flow helps your business deal with expenses while you make the deliveries. A CRM system with a partial invoicing feature makes the finance department’s job easy and prevents any delays.
#2. Manage Out-of-pocket & Operational Expenses
Some projects, once finalized, need immediate out-of-pocket expenses. For example, a small architecture or graphic designing firm may need a specialized software license to do a job.
In this case, getting partial payment upfront from the client makes sense. A content management firm often delivers projects in phases. The deliveries could be varied and may fall into different payment slabs.
With a CRM that allows for partial invoicing, you can easily create and manage the invoices against agreed terms and conditions with the client.
#3. Assured Payments
While there is never an assurance of payments, waiting till the end to get the full payment makes it even more unpredictable and challenging.
By getting upfront and partial payments, you can ensure that the client has enough cash reserves to pay for the project.
#4. Create Automated Reminders
If you are sending manual invoices, there is no way to keep track of defaults except excel sheets or calendar reminders.
This is inefficient and may not work as you grow. CRM systems with partial invoicing will alert you when the payments are delayed or overdue.
#5. Track Defaults
Many SMBs struggle when they don’t get the payments on time and are pressured by the client to keep the deliveries going.
Before they know it, multiple payments are in default. If you have multiple clients, each with an installment plan, tracking defaults becomes even more difficult.
A CRM system will help you track defaults easily and even generate reports.
#6. Choose Your Payment Type
You can define if you want to get paid percentage-wise or a fixed amount per an agreed slab while signing the contract. You can also incorporate discounts if any, that you may be offering.
#7. Make it Easy for the Customer
It is also easy for the client to make regular partial payments and not get overburdened by a one-time invoice at the end of the project. It is a win-win for both you and the customer.
Many SMBs struggle or even fail because they run out of operating cash to pay salaries and maintain infrastructure, inventory, supplies, and utility bills.
Even if you have a great product or service, inefficient invoicing could still hurt the business. A CRM system with simple invoicing is no longer enough.
If you have a small or medium business, a CRM system that delivers partial invoicing features will set you up for business success in the long term.