Invoicing Best Practices

Chapter 34

12 Invoicing Best Practices You Must Follow

Author: Bhaval Patel

How Invoicing Best Practices Help You Get Paid?

The last step between delivering a service or product and getting payment from your client through invoicing best practices is the essential step that you need to consider. This crucial step is often omitted from the mind and strategy that goes into deploying the perfect communication strategy for your small business invoicing.

Don’t forget that the best practices serve as the only direct communication you have with your client. Therefore, you need to be sure it’s not the last one. Check through the invoice payment sample twice, and ensure that it has a friendly tone.

Don’t just make it a numbers game as it is easier for you to engage a previous client than it is to entice a new one. To make your clients happy and maintain the cash flow, you need to take essential steps.

Invoice handling may seem tedious and unnecessary to you, but it is vital for your business. The accurate invoice processing allows you to create a plumper bottom-line for those that get it right from the beginning. Avoiding invoicing mistakes and following the right process is important for you.

This process is an integral part of business, either big or small. It serves as a reward for your hard work and serves as the last thing you leave with your client. A complete and professional invoicing is crucial to maintain the cash flow; this is the main reason why we have touched on the best practices for online invoicing in this section. 

Below are some steps that will assist you in improving your billing and invoicing process. We have also added some examples that are ideal for giving you a concise idea of how a personal, simple, and well-structured invoice looks.

Best Practices For Invoicing Help You Get Paid

  1. Keep It Simple

    Make sure your invoice is simple. Take a glance at your invoice and make sure all the information and details can be recognized easily with a glimpse. Look back at that time that you struggled to pay an invoice, don’t make the same mistake. Do your part in making sure that your client pays on time.

  2. Incorporate Marketing and Branding Principles in Your Invoicing

    Don’t think invoices are just pieces of paper. They should be an essential part of your communication strategy. Make sure it aligns with your marketing activity and your overall branding. Include it as a natural part of your communication with the invoice clients. You have many accounting tools and invoicing companies at your disposal to make your invoice align with your business. Some of the top invoicing software companies that offer tools includeMixBit, Zero, and QuickBooks. These are some of the best invoicing solutions for different purposes and businesses.
  3. Have The Date and Reference Number Clearly Visible On the Invoice

    The reference number, invoice number, and date are significant too. It gives you and your clients the ease to navigate your invoices back and forth. It also allows you to organize your invoices. At the same time, it serves as an easily communicated reference when you need it internally, i.e., between departments and when you’re communicating with your clients externally.

  4. Address The Person and The Company

    Including the clients’ names helps to keep a friendly and approachable tone for smaller companies or clients. Including the title will also allow larger clients by serving as a means of reference if questions need to be asked about the billing.

  5. Include an “appreciation” Note

    An appreciation note also serves as a way to keep a friendly tone. You don’t have to write too much. A short paragraph will do a lot of work. You can keep it professional. For example, “Your business is well appreciated. You can also personalize it, especially if you’re dealing with a long-term customer.

  6. Provide a Thorough Description of Every Item on the Invoice

    It might seem like the necessary information, but it is very crucial to your invoice. It serves as an opportunity to explain your service’s value and build trust between you and your client. You can also use it to answer any questions your client might have about the product.

    Don’t forget to keep it simple. There’s nothing more to transparency than keeping it simple. Sending a massive list of time registrations to your clients is not transparent. Most of your clients won’t even care about every single individual item, especially in substantial order.

    Moreover, most of them won’t understand the amount of stress you went through to get it done. You can instead sum up all your items to just a few, for example, using milestones.

  7. Provide The Total Amount, Due Date, and Terms of Payment

    You need to include these three crucial pieces of information on your client billing;  total amount, due date, late payment fees, and the terms and conditions for invoice payment. The payment terms help to promote clarity between both parties. Clearly mentioned payment terms would also help avoid conflicts between you and clients if there is a legal battle related to the payment terms.

  8. Include Payment Information

    Make sure all your payment options are simple and easy to find. Do your best to make things easy for you and your client regarding the payment process. You can include an online, mobile service, or other payment methods to easily make accounts payable without hassle using a bank account or credit card. A common example is a QR code that links to the payment service in a web browser or an app.

  9. Forward the Invoice via Email and Request for A “Read Receipt”

    Emails are straightforward, stable, and also a swift means of communication. You can use it to send your invoices immediately while saving money on postage fees. Most invoicing tools and email services support the use of “read receipts,” so you’d know when your client gets the invoices. You will also know if the mail hasn’t read the client’s inbox, so you’ll be able to take action and make it so.

    You can send your invoice as a PDF copy or use a direct link to the online invoice in your payment and invoicing solution or combine both. The second option should be the most effective.

  10. Send a Friendly Reminder Before the Invoice Due Date

    You are probably not the only person your client deals with. You can send them a simple reminder ahead of time. You can also offer assistance and help by answering any questions the client has as a part of the customer service.

  11. Send a “Thank You” Note after Receiving Payment

    This simple gesture helps to improve your relationship with your clients. After you finalize a project, offer or suggest a form of future partnership. Let them remember your small business and introduce them to make you a member of their venture.

    Also, mention your customer service number in case they need further assistance. You can also offer your customer additional discounts for their next purchase. This sweet gesture will keep help you maintain your brand value.

  12. Keep Track of Your Invoices and Save Them in An Organized System

    Keep your invoices and other relevant information in a centralized area, e.g., services like MixBit, QuickBooks, or Xero. These tools give you easy access to current and previous invoices. It also allows you to quickly offer customer service’s contact information when there’s an issue to see what you communicated to your client. You can provide excellent customer experience and customer satisfaction.

    An organized system also gives you a chance to check and look back on all the payment and invoices that were processed correctly, and whether everything correlates with the agreed amount and other conditions.

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