Congratulations! You have fulfilled your lifelong dream of opening your own small business. You’re an expert at what you do, and that is why your customers love you. They have purchased your products and used your services…now what? Well, it’s time to send that invoice and get yourself paid for a job well done!
When you’re not well equipped with the right tools invoicing can be a stressful accounting process to approach, especially when you’re not well versed in accounts receivable, but as you know – cash flow is crucial to the success of small businesses.
While it may seem daunting at first, implementing strategies for successful accounting practices can make invoicing and payments hassle- and stress-free for entrepreneurs. With that in mind, we have put together seven tips that you can use today to become a master at invoicing and make it easy for your clients to pay you:
1. Include All Relevant Information: We can all agree that it is horrible to receive a bill that you don’t know what it is for. The number seems daunting and it can be frustrating not to know where your hard-earned cash is being sent. While your business is top of mind for you and the job you’ve just completed for your clients is fresh, there is the chance that they cannot make a connection to what they are paying for and to who. For this reason, it is important to make sure each invoice includes all relevant information pertaining to your business and the job you’ve just completed.
Make sure each invoice lays out:
- All contact information including your business name, your name, address, and phone number.
- An itemized list of the product or service that you have provided.
- The due date and subsequent payment options you accept.
By including a breakdown of who you are and what you’ve done, paying the invoice is easy and convenient for the client.
2. List a Due Date: Create an emphasis in your invoice on your expected due date. Whether your terms are listed as being paid immediately, in 30 days, or in 60 days, the easiest way to actually get paid by that time – is to ask for it.
3. Brand your invoices: Allow your invoice to stand apart and impress clients with a professionally branded invoice. Creating a template that is personalized and carries your company logo and details ensures that customers know who you are and elevates the professionalism of your service or product.
4. Send Invoices Promptly: You have completed the work on time and you’re ready to get paid! Making sure that you send out invoices promptly will ensure that you, as a vendor, are top of mind to receiving compensation for a job well done. The rule of thumb with invoicing is to send the invoice within 48 hours of delivery so that your work is fresh and relevant.
5. Use an Online Invoice Software Platform: