25th-Jan-2026 • Alice Wambui • SME Invoicing Best Practices
Small and medium enterprises (SMEs) in Kenya are the lifeblood of our economy, contributing significantly to employment and GDP. However, managing finances efficiently can be challenging, particularly when it comes to invoicing. With these seven essential best practices for SME invoicing, you'll streamline your process, boost cash flow, and create a more efficient financial infrastructure.
Automating the invoicing process eliminates errors, reduces delays, and saves valuable time. With platforms like Lipabiz, you can generate and send professional invoices in just a few clicks.
Your invoices should be easy to understand for both you and your clients. Avoid jargon and ensure all necessary details—such as item descriptions, quantities, prices, and due dates—are clearly stated.
Clearly state your payment terms on every invoice to avoid confusion. This includes the accepted payment methods, the grace period for early payments, and any late fees for delayed payments.
Send invoices as soon as possible after delivering goods or services to ensure timely payments. Late invoicing can lead to cash flow issues and strained client relationships.
Offer multiple payment options, such as mobile money, bank transfer, and credit card, to cater to your clients' preferences and facilitate quick payments.
Regularly check the status of your invoices and promptly follow up on overdue ones. This helps maintain good client relationships while ensuring timely cash flow.
A robust accounting system, like Lipabiz, allows you to easily track invoices and manage finances. This provides valuable insights for decision-making and ensures compliance with relevant tax laws.
