Whether you’re a solopreneur, freelancer, or small business owner, knowing how to invoice clients properly is imperative to keeping your company moving forward.
Did you know that a staggering 39% of all invoices sent in the United States are paid late? If your clients don’t pay you on time, every time, you may be in for future financial hardship.
In order to make your invoicing process seamless and avoid late payments, here are five simple steps for invoicing your clients.
1. Create a Custom Invoice Template
The first step in the invoicing process is to create custom invoice templates for your business. You can use Adobe, Word, or Excel to craft your template effortlessly. Ensure that you’re using the same template every time you send an invoice to a client to keep your brand looking professional.
2. Always Include Your Contact Information
Despite the fact that many clients may pay you electronically, it’s always best to include your contact information at the top of your invoice. This includes your company name, your business address, phone number, and email.
Include the client’s billing details on the opposite side of your invoice header.
3. Utilize a Consistent Numbering System
This can be the easiest detail to overlook, but it’s one of the most important. Each and every invoice you create should have a unique number. Why is this step so critical? Because it promises that your invoice will be correctly processed by the client. It also makes it simpler to search for and sort all of your invoices come tax season.
There are a couple of different ways that you can number your invoices. But be sure that you’re always following a sequential order to make managing them easier.
4. Specify Your Preferred Payment Method
Gone are the days of simply having a client snail mail you a check. Always include your preferred payment method within your invoice details. Whether it’s through PayPal, direct deposit, or a check, let your clients know. ACH payments are another payment option that can be included in your invoices. An ach payments processing system can help you to make payments electronically from one bank account to another via the Automated Clearing House network. As an alternative, credit card payments can also be included in your invoices as an additional payment method.
5. Itemize Your Services or Products
The bulk of your invoice will be a detailed list of the services or products you provided to the client. To make your invoice more transparent, always include an itemized list of your services or products, as well as your rates.
Make this section as detailed as possible to help your clients understand exactly what they are paying for. This also lowers the risk of questions that a customer might have about an invoice that could possibly delay your payment.
When creating your invoice, describe the service or product, the date it was performed or sold, and a rate for each item. At the bottom, include the total due in bold so that it stands out clearly.
An itemized invoice will save you a lot of time and trouble down the road.
How to Invoice Properly
To ensure quick payments each and every time, it’s important to follow these tips on how to invoice your customers correctly. From creating a custom invoice template to itemizing your services, these steps will guarantee that you’ll never suffer from a late payment ever again.
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