07 Sep
Invoicing has always been an essential part of a business and plays a fundamental role in business success. Creating and sending invoices is an integral part of any business. It helps keep an eye on the cash flow and proper receipts to back it up with. Therefore, it is important for every business, whether small, SME, or big. Your business might want to be paid bills on time and save from late payments. If you are facing the issue of late payments and poor invoicing strategy, you should learn about some effective ways and practices to adapt. Read this article and get the best invoicing practices for small businesses.
Date of issue
It is a good practice to mention the invoice creation date. Make sure that the date of goods or services delivered is also mentioned.
Unique invoice number
When sending multiple invoices to the same client/customer, you should give a unique invoice number.
Address the invoice to a person, not the company
Address the concerned person’s name on the invoice, and don’t just include the company’s name. Referring to the right person works as a means for the financial department in case of questions or important information concerning the billing.
Contact information of all parties involved
Ensure to include the information name, address, contact number, and email address of all the parties involved in billing.
Payment terms
Clarify the payment terms that indicate how long the client has to pay to you, i.e., net 30 (due in 30 days), net 60 (due in 60 days), etc., as per time duration.
Summary of description of goods/services provided
Make it as concise as you can, and refer to complete milestones/goods or services outlined in your contract.
SKU numbers
If your business is using SKU (Stock Keeping Unit) numbers for goods or services, then include them. This will help while pricing and determining what goods are taxable.
Totals
Make sure to include all the costs of included items, subtotals, taxes or discounts, and the grand total.
Early/late payment details
Include if you are giving discounts for early payments or charging for late payments.
Method of payments accepted.
Clearly define the mode of payment and indicate all options for how to pay. Let them know how they can pay you.
Straightforward
Be straightforward in the totals so that your client will understand how you arrived at the total. Make it easy for your client and keep your invoice to one page.
Send invoices as soon as possible.
With the completion of the project, you need to send an invoice promptly. The earlier you send it, the better the chance of getting paid on time.
Offer multiple ways of payment to your business.
Give your customer multiple options to pay your invoices. If you are issuing invoices for international payments, you need to indicate which currency you accept.
Add a description to each of the charges.
It is an opportunity to explain what value you are providing to your client and charge for. Describe it concisely to remove any confusion.
Know how to follow up
When you haven’t received payments, then you should take professional follow-up. Make a schedule for following up, making the process easier and less frustrating.
Keep track of late business invoices.
Keeping track of all of your late business invoices. It’ll help you in balancing your accounts.
Keep the invoice clear and concise.
The most important step is to keep it simple and short. Try not to make it an over-complicated invoice with lots of jargon or a complex layout with multiple pages.
Add a thank you note
Putting a thank you note keeps it friendly. You can personalize it or keep a standardized one.
Conclusion
Often invoice is the last direct communication you have with your client, and you need to ensure that it will not be the last one. Give thought to your invoice and ensure all of the mentioned best practices are followed. Make the tone of voice friendly and make it beautiful. Invoice is a branding opportunity; you need a proper invoice layout and all the important descriptions.
Content Writer at Invyce.com
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