Automating Customer Invoicing and Payment Tracking (Local Focus)
Reducing Debtors and Improving Cash Flow
Manual invoicing is time-consuming and prone to errors. Automation is critical for maintaining accurate records and speeding up the collection of outstanding debts (debtors), which is a major cash flow challenge for Kenyan businesses.
Automation Tools and Process
- **Accounting Software Integration:** Use your accounting package (QuickBooks, local ERPs) to generate invoices automatically from sales data and email them immediately upon service delivery.
- **Payment Gateways:** Integrate mobile money (MTN MoMo, Airtel Money) and local bank transfer details directly onto the digital invoice. This facilitates immediate payment, lowering debtor days.
- **Automated Reminders:** Set up the system to automatically send SMS or email reminders to customers whose invoices are approaching or past their due date (e.g., 3 days before, 1 day after).
- **Real-Time Tracking:** Automated systems update the debtor balance in real-time as soon as payment is confirmed, eliminating the need for manual reconciliation.
Ensure your automated invoices comply with URA requirements, especially regarding VAT and official serial numbering.