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Electronic invoices (e-invoices) eliminate human errors caused by manual labor, such as sending the incorrect amount or making typos when inputting account information, among other things. Electronic invoices (e-invoices) eliminate the risk of errors when making an online payment because they contain all of the information needed to make an online invoice payment, such as the amount due, account information, and so on.

Both the sender and the receiver of the e-invoice can benefit from significant cost reductions spent on printing and exchanging invoices by automating the online payment procedure for e-invoices. Sellers can save money on printing and posting paper bills, as well as responding to customer requests for copies of lost invoices, by using electronic invoicing (E-Invoicing).

The process of sharing and paying invoices is made easier using electronic invoices (e-invoices). E-invoicing allows sellers to get funds faster and have a more consistent cash flow. E-invoicing allows purchasers to save time and money by eliminating the need to print paper invoices and the risk of making payment errors while paying bills.

The electronic invoice (e-invoice) replaces manual intervention in the sending and sharing of invoices between buyers and sellers. This means that the invoice is prepared, sent, and received electronically. Buyers and sellers can use this to automate invoice processing.

E-invoicing and payments are a smooth process in accounting applications like the Udhaar app. Shop owners can check the invoice and gather payments by credit transfer, direct debit, or card payment once the e-invoice is received in the accounting software. Electronic invoices (e-invoices) allow you to generate automated invoice payments by eliminating the need to manually enter bank account information, payment amount, and so on.

1. Ensure communication with your customers and clients: Regardless of your industry, now is a critical time to keep communication our top priority. This is not only critical for existing consumers, but also for new customers. This does not have to be a sales pitch; simply checking in to see how they are doing and what they require at this time, can be extremely beneficial and this will help build your relationship with them, as you can see that It’s all about listening and providing immediate value and service.

2. Prioritize customers over competitors.
Many people are more concerned with their competitors than with how they can add value to their own clients. Customer service distinguishes small businesses from large corporations. We have the flexibility to quickly adjust and change what we’re delivering in order to better fulfill the needs of our clients. Now is truly the moment to go deeper into your business, examining what has worked successfully in the past and what you can do more of to provide greater value to clients. This could be accomplished through incentive programs, discounts, future booking flexibility, and much more. You have to consider what you can do right now to keep your clients so that when things pick up again, you’ll be the first person that comes to mind.

3. Explore different roads.
There are many amazing examples of organizations effectively exploring whole new fields by embracing the current situation. However, you must be cautious in your approach and remain true to your company’s values. Know your niche, consider what your clients truly require, assess where you are now, and then determine where the logical pivot is. Customers are eager to support small businesses right now, so explain your story and recall why you established the company in the first place – what problem can you answer for your customers in this environment? Consider what you excel at and double it. Because It’s time to keep moving forward!

Cash flow issues are the primary cause of many small businesses going out of business each year. No matter how prosperous a company appears to be on paper, if customers do not pay their khata, cash flow will quickly dry up, and the company will be unable to meet its operating costs. One approach to avoid this disaster is to implement a strong credit control system from the start.

Putting a credit control system in place

Allow no more than a month for late payments. Keep a tight eye on your sales ledger and be aware of any outstanding accounts.

To get paid, phone the customer and ask when they expect to pay – and don’t be fooled by excuses like “the money is on the way.” Maintain a pleasant demeanor at all times, but be prepared to pursue the situation if the payment is not coming through on time. Also, keep a record of all communications in case you are compelled to pursue the matter further.

When you’re caught up in the day-to-day operations of a small business, it’s easy to forget about credit control. After all, you have a million things to do, so chasing customers for non-payment invoices may not be at the top of your priority list. But it should be—it only takes one or two significant outstanding invoices to wreak havoc on cash flow, so credit control should always be a top focus.

Also, If you’d like to learn how you can automate this entire process and be able to access all of this through your smartphone or tablet – connect with our team today.

Plan your finances, ahead of time
Planning every action and necessity is one of the most crucial personal money management lessons one can master. You must always plan ahead, not only for yourself but also for your business, to ensure that you have enough cash on hand to pay for unexpected expenses such as tax obligations. There will always be numerous company problems that will need to be addressed quickly, but when it comes to your finances, you must plan for the future. Preparing 5 to 10 years ahead is critical to avoid falling behind your competition.

Invest in the future.
To bring profits to your business, it is critical to set money aside and invest in growth prospects. Since you should always have an eye on the future as a business owner, this will help your company grow in a healthy financial path. A main financial management tip is to invest religiously in the future. This is necessary for the growth of your organization and to attract the best staff in the market. Investing in numerous elements of your business will undoubtedly improve the quality of your service and your employees’ productivity.

Plan a solid billing procedure.
Controlling the money flow and ensuring the business grows consistently and efficiently are all part of running a small business and managing finances. If you’re having trouble getting your customers to pay you back, try coming up with new ways to bill them. Most business owners have at least one customer who is perpetually late with their bills and payments, having our Udhaar khata app has helped various business owners stay up to date on due payment terms, Instead of having to bug them with repeated invoices and phone calls.

When it comes to small business money management, education and organization are the most critical factors to maintain your company’s financial health. It entails by informing you and your team about the various aspects of their finances and having a system in place to manage them. It is well known that small and medium enterprises will save a little money each month, according to financial experts.

Furthermore, the successful execution of strategies in the supply chain and customer service is the primary reason for your company’s growth. If you have no prior expertise in managing business finances, this can be a difficult undertaking, and you may wind up losing your money as a result of poor financial practices that may also harm your business.

So If you want to build a profitable business, you must break free from this cycle and begin planning and saving on a regular and disciplined basis. Only then will you be able to evolve into investing in your future as a business owner.

It is critical to have a fundamental understanding of basic skills and practices in order to run a business, no matter how little or vast. Regular accounting, tallying, loan applications, and producing financial statements are some of the activities that every business owner should be aware of in order to build a stable financial future and avoid a business breakdown. As we top it off, being organized is also essential for effective money management.

If you have the right resources, keeping track of company expenditures and sales becomes a lot easier. These resources will assist you in keeping track of your sales, expenditures and regular activities. As a small business owner, this will allow you to keep a closer eye on every incoming and outgoing. Moreover, improved cost management would improve profitability.

Tracking your company expenses makes tax time a lot easier because many of them can be written off. You’re more likely to miss future deductions if you keep track of your spending on a daily basis. As a result, you’ll pay less in taxes (or get more back).

Let’s discuss some of the strategies to track your daily sales and expenses:

 

Open Business Financial Accounts

The distinction between personal and company finances can be fuzzy for freelancers and small businesses. When the tax is due, you may find yourself looking for expenses among your grocery and clothing purchases.

Open company financial statements to keep track of all business-related expenditures. Then, for all company transactions, use your business accounts.

You’ll need:

• A business chequing account
• A business savings account
• A business credit card

 

It’s also a good idea to place your company expenses on a rewards credit card. On some credit cards, you can get cash back on your transactions. Others allow you to accumulate points and use them to book flights and hotels. Forbes has assembled a list of the best business credit cards available.

 

Where possible, entrepreneurs advise against using cash. Cash is too easy to spend, difficult to monitor, and only has a receipt as a backup, while a digital transaction leaves a record in your bank account as well as a receipt. Using debit and credit for transactions is better for your company, better at tax time, and certainly better if you get audited.

 

Store Invoices Properly

 

Paper Receipts

Here are some tips for keeping a proper record of paper receipts:

Keep business paper receipts in a separate envelope in your purse or wallet. If you can’t stick to filing your receipts on a regular basis, set aside time once a week to do so. One option is to do it on a Friday afternoon, and make it a recurring appointment on your calendar.

 

Use file folders

Create one for each month at the start of the year and file your receipts accordingly. Use a filing cabinet or an accordion folder to organise your documents.

Use binders: Purchase plastic sleeves and mark them according to the month or type. If you have a lot of receipts, categorising them can make things simpler when it comes time to file your taxes.

Don’t forget to write the reason for your purchase on your receipts. Unless you write down that a $10 sandwich was purchased during a lunch with a particular client, a receipt from six months ago won’t tell you anything.

 

Receipts In Digital Format

There are multiple applications that make it easier to store receipts digitally. Plus, if you scan your receipts, you won’t need paper backups.

Udhaar App has a feature that allows you to conveniently create receipts and send them to your customers to receive your payment quickly.

You can also manage your daily sales, cash, expenses and send free invoices to your customers. Udhaar Bill Book simplifies the job of a bookkeeper. No need to calculate your daily sales cash balance manually. It will help you reconcile transactions easily. 

 

Udhaar App is an excellent tool for managing business operations and getting cash recovered instantly. As a credit management application, Udhaar App has not only been trending in Pakistan but also around the world. The growing popularity of the app has got customers into asking about the working and functionality of the app. Therefore, we bring you the answers to the most frequently asked questions. Let’s dive in.

 

• Where can I find this app?

Download the Udhaar app straight from the PlayStore or easily by clicking this link here

 

• How do I create an account?

Setting up an Udhaar account is an easy 3-step process. As soon as you download the Udhaar app, open the app on your smartphone. From here, you will be asked to choose the language you’re comfortable with (English, Urdu, Roman Urdu, Sindhi). For the next step, you’ll be guided to enter the mobile number you want to get registered with the app, and verify the phone number through an automated OTP (One-Time-Pin) generated and sent to your phone via SMS. If the code is not submitted automatically, please open your inbox and enter the code into the app.

On entering the correct code, you’ll now be redirected to a screen where you’ve to enter your personal information such as your Name, Business Name, and Business Category. Here “Business Name” refers to the name of your shop/store, and “Business Category” refers to the sector or area of your business operations.

Setting up an Udhaar account is a one-time and 2-minute process. Once the account is created, you just have to log in and carry on with your business.

 

• How do I add the first customer?

After successful signup, you’ll be redirected to your Home Screen. On the bottom right corner of the screen, you will see a circular green-colored button. Clicking on this button will give you the option to add a customer through your contact list or enter a customer manually.

If you choose to add a customer through your phonebook, just type the customer’s name, and confirm.

If you choose to add a customer manually you will be required to fill in their name and number (customer’s number is optional, but to get the most out of your experience using a digital Khata app, we suggest you fill all the fields). 

 

• How do I give udhaar/credit to customers?

After creating a customer account, you can either add transactions straight from a personal chat room or you can access this feature on your home screen by tapping on your customer’s name.

Afterward, you’ll have two options at the bottom of the screen: “Accept Payment” (in Green) and “Give Udhaar” (in Red). Clicking the “Give Udhaar” button in Red will move you on to the next screen where you can enter the Udhaar amount you want to give to the customer. You can further choose from the options like, whether you would like to send auto-reminders to the respective customer or add notes for the Udhaar given to the customer as your own reminder and so much more.

Automation is taking the business world by storm, all hail to the new stream of algorithmic technology that’s accessible for everyone to use. Now brands, regardless of sizes, can create their own automated mechanisms to transform their venture into a more productive, effective, and profitable business.

In this blog, we’re going to cover some of the key steps to reconstructing your business with automation.

 

Choose The Tasks You Think Can Be Automated

Be careful, if you think of it as too obvious or simple. Selecting the right tasks is absolutely crucial and this is where most businesses put their efforts to a false start with automation – so don’t fall into the same trap.

First, you need to examine how automation works and what you can achieve from it because there are plenty of tasks that can be automated, but you probably shouldn’t. There are a plethora of tools for automating web design, translation, content writing, and everything else you could do if you are a business owner or a marketer – but most of the time all you do is insufficient.

 

So What Kind of Tasks Should You be Automating?

If you’re a business owner, outstanding payments are the most crucial aspect of running a business when it comes to streamlining cash flows. If you are looking to automate collection processes, the Udhaar app might be the right choice for you.

Udhaar is a free application for personal and commercial use. It helps you manage credit with customers and suppliers directly through your smartphone.

Udhaar app is an online ledger (like an online digi-khata or credit book) to record your outstanding debt, and send auto-reminders to customers to increase collection and cash flow.

 

Set Your Automation Targets

Spending on automation tools and investing time in establishing new workflows won’t make any sense if they don’t add profit to your business. So before you put effort into creating new workflows, please ensure you set definite targets that you can use to pave the way for success and refine your processes.

Be specific with clear goals, set targets for each quarter, and be on your way to gauge success.

 

Track Results and Refine Processes

Without specific targets and the right KPIs, you are going to have trouble measuring what sort of impact automation is having on your workflow. Essentially, you won’t be able to point out opportunities to define your automation and maximise results.

A simple alteration to your workflow can add thousands or even more to your profitability when you enable automation to multiply tasks to almost unlimited. 

 

Start Small and Build From There

The key to set up automation is to think big, start small, and build your business over time. Scrutinize your previous processes, track outcomes, and redefine your workflows for better results before you make efforts adding complex automation into the mix.

The said procedure is a lot more gradual but also gets faster to come to terms with. With a blink of an eye, you’ll be sharing your own blogs complementing about how high your conversion rate is thanks to your latest automation.

The best thing about retail sales is immediately getting paid after making the sale. The customer pays in cash or uses a credit card and the transaction ends right there. Unfortunately, the process isn’t the same for everyone, some businesses are different.

Credit requests or demands usually put you in an odd position, especially if you own a small or medium-sized business. Selling on credit to a client who has a good history is a good decision, provided your current cash flow can support it. On the other hand, setting terms with a client who has bad credit can go otherwise.

Always remember, the only thing worse than losing a sale is making the sale and not getting paid for it.

 

Offering Credit can be a Sales Tool

Offering credit to commercial clients can be an important sales strategy. It can help you close a greater number of deals, especially if you can afford to be more generous than the rest of the market. If utilized cautiously, credit can help you grow much faster and take things to the next level.

However, credit can also become a double-edged sword as you undertake additional financial risks – sometimes unnecessary. Unpaid Invoices from clients drag your finances and if you give credit to the wrong client on a bulk sale, the damage may be beyond recovery. Therefore, offer credit very carefully.

 

Who should be offered credit?

Offer a net 30-day deadline only to companies that you think can afford to repay in time. Examining this creditworthiness may appear difficult, but it is often very productive. Commercial credit reports on companies are easily available. Unlike consumer credit reports, corporate credit reports don’t require special permission.

The information in these reports is helpful. They accumulate the payment histories of your clientele and offer a way to determine if your potential client is creditworthy. 

At times, making the right credit decision is like hitting the bullseye, especially when the information is distorted. Thus, it’s not possible to be right every time. Your objective should be to manage risk and make informed decisions rather than eliminating all risk.

 

What if you can’t afford to offer terms?

The challenge that small companies often come across is the fact that offering credit creates cash flow problems. Non-payments and delayed payments often result in lost revenues. If you don’t have reserves sufficient to cover your expenses while waiting for payment, you’ll eventually run into problems. These problems can affect your business when it’s growing and derail your finances.

One way to solve this problem is to become a sword and hover over your client’s head. Not all of them but only the spoiled ones. One easy way to get your money recovered is to use the Udhaar app. This app is a blessing for Small retailers who usually trade on credit and have their payments outstanding. With the Udhaar app, you can send auto-reminders and customized reminders with a deadline and details of the transaction to your creditors and get your money back 10 times faster.

 

One last word of advice

If you have never offered credit to clients, you should start now. Start slowly, give yourself time to understand how your cash flow works, and be prepared to deal with sudden cash shortages. Lastly, start building a reliable cash reserve to tap if clients start paying slower than expected.