One way to make collecting on invoices easier is to set up an automated invoicing system. Or, you can use invoicing systems that work with email and PayPal. Thankfully, today there are so many systems that you can surely find the right one for you.

In the “old days” you had to wait for a check to arrive in the mail; today you can use many different payment processors like PayPal, ACH, Stripe.com, and more.

Problems with Invoicing

Some of the most difficult aspects of invoicing are:

* Getting accurate invoices out on time – A real key to invoicing is to make accurate invoices that include all the work done up to the point of the invoice. Without a good system, you could forget work that you’ve done.

* Following up when payment is overdue – Sometimes payments are late; sometimes it’s the client’s fault and sometimes it’s your fault due to the invoice not showing up. You can’t know if you’re not paying attention and following up.

* Tracking payment to the right invoice – If you do manual invoicing and manual data entry, you may accidentally credit the wrong payment to the wrong invoice. Ask clients to include the invoice number on the check, or switch to an automatic invoicing system where your clients can click to pay their invoice online.

Software Solutions

Here are some software solutions that can help.

* FreshBooks – This is a terrific invoicing software solution that allows you to accept several different ways of collecting payment. You can even mail an invoice through snail mail, or send through email. It has time tracking, expense tracking and many other features that help create accurate invoices automatically.

Link – http://www.freshbooks.com/

* QuickBooks – A professional solution that works in many ways, from allowing you to set up recurring payments, to sending one-time invoices, to collecting payment via ACH automatic deposit to your business account.

Link – http://www.intuit.com/

* PayPal Invoicing – You’ll have to make each invoice individually as it doesn’t have any auto features, but it’s free and included with your PayPal business account. It’s also easy to use and looks professional with your business logo included on the invoice.

Link – https://www.paypal.com/

* Go Daddy Bookkeeping – Create and track invoices using this bookkeeping solution. This invoicing option is improving as time moves forward. It’s still lacking in some features, although it works very well and makes it easy to keep track of everything in one spot.

Link – https://bookkeeping.godaddy.com/

* Recurring/Subscription Payments – Seek software that enables you to invoice and collect payment on a recurring basis. This way you don’t have to do it manually each month, which will be a huge time saver.

Using these systems can go far in helping you eliminate busy work when it comes to getting invoices out on time, accurately, and in a professional manner that demands payment without being rude or intrusive.

You need to create a budget for your home business in order to know whether or not you’re making a profit, expanding your business, and achieving the goals that you want. Budgets help you plan for the future, manage cash flow, and even secure financing if you should need it in the future.

Research Your Niche

When you’ve decided upon a business and a niche, there are tools of the trade that you may need or want. See what is available so that you can research the tools and choose the ones that offer the most value to your business.

Avoid Traditional Office Supplies

It can be tempting to run out and buy a file cabinet, paper, printer, ink and so much that you relate to an “office,” but today you don’t need those things. Instead “think green” and avoid most of that stuff. You don’t need it, and you’re not ever going to need it. Even when it comes to printing, unless you have a position that requires it, you will save money buying a second monitor instead of printing things out.

Use What You Have

What items do you already have? You likely have a laptop, a desk, and other things that you can put into service already for your home business. There is no reason to go out and buy all new things when you are first starting out. Using what you have will enable you to spend money on things you don’t have.

Keep Your Budget Simple

Don’t get carried away in the beginning with adding extra phone lines, a new internet connections and things that you’re not even sure you need yet. If you only add things when you’re certain that you need them, you’ll keep your budget lower and controlled.

Question Every Expense

Before you add a new expense to your business, ask yourself if the expense will create a return on investment or not. If not, ask yourself why you really need the expense. Does it play an integral part of your business to help it keep running? Do you really need it? You do have to spend money to make money, but you should be smart about it.

Work in Flexibility

One of the most awesome things about working from home today is the cloud-based technology that is available. You can essentially rent software instead of buying it outright, which means that you can deduct it fully each month from your income, and then if you no longer need it you can stop. Plus, most cloud-based software allows for flexibility in terms of features that you may or may not need.

Know Your Break-Even Point

Your break-even point is the amount of money you need to make just to keep the doors open without actually earning a profit. It’s your cost of doing business. This is an important number to note because it will help you determine your fees in the future.

Reassess Yearly

Always take the time to look at your budget each year to make sure that it fits with your goals to maintain a lean business. Being lean with a home office is a lot easier than if you had a bricks and mortar business.

Your lean home business budget is an important part of running a home business. You have something a bricks and mortar business doesn’t, and that is lower overhead and much more flexibility surrounding the costs to do business.