Managing contractor invoices is a daunting task. Every contractor’s invoices look different, they’re submitted at different times, and each of your contractors likely has a different preferred method of payment. It’s often a headache—but it doesn’t have to be.
Below, you’ll learn some simple tips for managing contractor invoices like a pro. If it’s successful, this post should save you lots of time on your invoice management.
Here are some simple tips for managing contractor invoices like a pro.
Set clear payment terms
The first step in managing contractor invoices is to set clear payment terms with your contractors. This may include specifying when the contractor should submit their invoice, what information the invoice should include, and when you will pay. By setting these terms at the outset, you can help avoid confusion or disputes down the road.
Keep accurate records
Good record-keeping is essential when managing contractor invoices. Keep a record of each invoice and when it was received, processed, and paid. This can help you stay on top of your accounts payable and avoid late fees or missed payments.
Use invoice management software
Invoice management software can be a game-changer when it comes to managing contractor invoices. Many software solutions can automate tasks like invoice processing, payment reminders, and record-keeping. This can help streamline the invoice management process and free up your time for more important tasks. This is what we built Panther for—check it out here.
Make timely payments
Making timely payments is critical when managing contractor invoices. Not only is it important for maintaining a good relationship with your contractors, but it can also help you avoid late fees and interest charges. Consider setting up automatic payments or reminders to help ensure that you pay on time.
Review each invoice carefully
Reviewing each invoice carefully can help you catch any errors or discrepancies before they become a problem. Check that the hours worked or services provided match the contract or agreement with the contractor. This can help you avoid overpaying or underpaying for services.
In conclusion, managing contractor invoices can be a breeze with a little bit of planning and organization. By setting clear payment terms, keeping accurate records, using invoice management software, making timely payments, and reviewing invoices carefully you can ensure your contractors are paid on time.
If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Panther, which saves you 90% the time you spend on contractor paperwork each month.
With Panther, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified. Invoices are automated, so you & your contractors don’t have to lift a finger.
Sound interesting? Click here to watch a 4-minute product demo and see the platform firsthand (without ever having to book a lengthy demo request call).