An invoice refers to a time-stamped, commercially-important document that holds the record of transactions taking place between a seller and buyer. It is a standard document that all businesses, irrespective of their scale, use to maintain records of transactions.
Similarly, invoicing refers to every process involved in the act of issuing invoices, including the issuing and storage of documents, payment registrations, keeping track of deadlines, etc. Every business, especially newly-set-up ones that are smaller in scale, should pay special attention to invoicing to avoid losses.
Here are some effective invoicing following which small businesses can significantly benefit:
- Create and Send Invoices Immediately After the Project’s Completion
If you own a small business and wish to make it profitable, one of the first things you should start doing is sending invoices as soon as the ongoing project gets completed. Doing so will benefit your business in many ways. For starters, it will set a precedent straight that your business is a professional one that believes in receiving the due amount immediately after completing a project.
Besides this, it will also help you avoid mistakes. Let us elaborate. If you keep a target of sending the invoice as soon as you finish the project, you will be compelled to keep track of all the activities right from day one. As a result, you will be able to effortlessly list all the tasks involved in the project and, as a result, avoid making mistakes and send the right amount to the client or customer.
- Create a Professional Invoice
When sending an invoice to the client, ensure it looks professional yet appealing. For starters, ensure that your invoice has the business’s name at the top, along with contact details and the official brand logo. Besides this, it should also feature the client’s name and contact details along with the invoice number, due date, amount, etc.
When sending a digital invoice, make sure it is in PDF format since it is deemed the universal format for sharing documents. Also, ensure the orientation is correct. For instance, if you accidentally create the invoice upside down, it would be best to rotate it. If you are wondering how to rotate on Mac, use the native Preview utility to get the job done. Similarly, Windows users can also get the job done using the Adobe Acrobat tool.
If you are facing trouble in creating a professional-looking invoice, it would be best if you use an invoice template that suits your requirements. Fortunately, many invoice template websites are readily available online, including Canva, ThemeForest, Invoice Simple, etc. Therefore, you can easily download the preferred invoice template to avoid the hassle of manually creating a professional-looking invoice yourself.
- Mention the Payment Terms Clearly on Every Invoice
Before starting any project or assignment and sharing the first invoice with the client or customer, business owners should establish the desired payment terms in a clear-cut manner. This is one of the primary steps involved in making a business venture successful.
Before sending the invoice, individuals should ensure they put the necessary payment details and other related information, such as the due date and payment method, on the invoice.
Moreover, they are advised to use straightforward language in the invoice to avoid confusion in the future. The more clearly the terms of the payment and other related details are mentioned, the more seamless the process of receiving the due amount will be.
- Keep a Spare Copy of Every Invoice
If you often send invoices to different customers and clients, it would be best if you keep a copy of both the template as well as the sent invoice. Doing so will not only reduce the hassle of making a new one every time but also help you keep track of all the invoices you have sent.
In addition to the aforementioned benefits, keeping copies of sent invoices also helps business owners avoid conflicts with customers or clients. There are instances when clients alter the contents of the sent invoice. However, if the business owners keep copies of the sent invoices, they can give them as proof if any payment issues arise.
- Penalize Clients By Charing Penalties on Late Payments
Anyone who owns and runs a small business should ensure they receive their payments on time by setting clear terms before undertaking a project or assignment. However, there are instances when clients refuse to pay on time even after receiving the invoice on time.
Small business owners should charge interest on late payments to compel clients to pay on time. Owners should include this condition in the agreement terms before accepting the project. Doing so will show that as an owner of a professional business, you expect to receive payments on time after completing the assigned tasks on time.
Any small business owner should follow the smart invoicing tips mentioned above to ensure they get paid on time after every project’s completion.