Being able to produce professional, attractive, and well-written invoices is the hallmark of any functioning business. Even if you’re a freelancer or independent contractor, these financial documents are quintessential to sustainable cash flow and a healthy relationship with clients. In short, it is paramount to know how to bill like a Pro.
But creating and sending out concise, well-written invoices can be easier said than done. With so many different layout options and bits of information to consider, making sure everything is accounted for can be a challenge. Fortunately, you’re not on your own out here.
In this article, we’ll outline seven tips for creating invoices that are altogether accurate, professional, and visually pleasing.
1. Use A Professional Design Layout
First impressions matter!
The way that your invoices are laid out can play a huge role in the success of your billing system. Unless you’re a professional designer, outsourcing to someone with experience in this area is always a better idea.
A professional design layout will communicate the right tone to your clients and make it easier for them to understand what is required of them. If you’re not in a position to hire a professional designer, downloading and using a template is another effective alternative.
2. Add A Unique Invoice Number, Date, And Payment Due Date
In terms of information, there are a few key elements that every invoice should include. The first and most important ones relate to the date and originality of the document:
- Unique invoice number – an original invoice number validates the document and makes it easier for you and your clients to keep track of all incoming and outgoing payments. It typically goes on the top right corner of the invoice.
- Current date – for the sake of clarity and documentation.
- Payment due date – this helps clients know when they’re expected to pay you what’s owed. Providing this information helps to prevent late payments.
This is all basic information that every invoice should include. Without this information, it will be nearly impossible for you or your client to keep track of the bill.
3. Add Up-To-Date Contact Information
Another important addition to every invoice is the contact information of both yourself (or your company) and your client. This can include full names, company names, email addresses, mobile phone numbers, and sometimes even Skype IDs.
When entering this information, it’s essential to double-check that it’s up to date. Outdated contact details on either side can make your invoice redundant and slow down payment processes.
4. Create A Comprehensive Table For The Description Of Services
The next thing you need when creating an invoice is a neatly formatted table that details the goods or services that you’re billing for. This is best done in a structured listicle format, as it makes it easier for your clients to read and understand.
Ensure that every item on the list is accurate and aligns with the true list of goods or services that your client has ordered. Avoid being vague or using jargon that’s business-specific, as it may cause confusion or upset.
5. Present The Prices And Total Amount Owed Clearly
Alongside your table of goods or services should be a corresponding list of each cost, plus a total amount owed at the end. Providing information about the individual cost of each item helps clients to understand exactly what they are paying for, amplifying their perceived value.
Adding the total amount owed at the end allows your client to easily see the sum they are required to send you, streamlining the payment process.
6. Incorporate Your Payment Options And Terms
Towards the end of your invoice document, you need to add a variety of payment options and list any payment terms you have factored into your professional service offering.
First, let’s take a look at some popular payment channel options used in 2023:
- PayPal ;
- Apple Pay ;
- Google Pay ;
- Venmo ;
- Alipay ;
- Cryptocurrency.
Invoice processing can take time, and the more payment channels you offer, the easier it is for clients to make payment. And when clients can choose a method that suits them, they’re more likely to settle your bill faster. Plus, it opens you up to a wider pool of clients to work with.
Adding specific payment terms can also help you communicate your needs to clients and prevent payment delays.
7. Add A Personal Note At The End
Finally, the last thing you can do to create an invoice that’s professional and well-written is to add a friendly message at the end. There is very little gratitude and appreciation in the corporate world, so small gestures like this can really make your client’s day.
Taking measures to ensure that your clients feel recognized and appreciated for their collaboration is not only conducive to a more efficient transaction, but it can also promote customer loyalty and retention. Even a simple « thank you for your business » can go a long way.
Bonus Pointer: Use An Automated Billing System
If the idea of running through all these invoicing details stresses you out, that’s understandable. Billing can be a bit of an administrative nightmare. But it doesn’t have to be that way. Automation can come to the rescue here too. An automated billing system can take that responsibility into its own hands.
Thanks to the digital age, automated billing has become one of the most popular and efficient ways for freelancers and businesses of any size to manage their invoices.
Via easily downloadable and often affordable software programs, you can gain access to a wide variety of billing tools, such as:
- Sending and receiving invoices ;
- Fact checking ;
- Real-time payment processing ;
- Automatic financial reports ;
- Secure user access.
Together, these features and tools can be instrumental in the process of optimizing your billing system. Plus, it means more time to focus on other priorities, thus boosting productivity.
Final Thoughts On Creating Invoices
A well-written invoice boosts your professional credibility, promotes faster payment, and helps you to maintain better relationships with clients. It’s also a key document in ensuring cash flow stays regular and your bookkeeping affairs are in good order.
With these tips, you can maintain a strong grip on your own finances while communicating clearly with clients and getting paid on time, every time.
How to bill like a pro : to summarize
Invoicing is a crucial aspect of running a successful business. It ensures that you get paid for the work you do and helps you maintain a healthy cash flow. However, it can also be a time-consuming and frustrating process if not done correctly. In this article, we have covered some essential tips to help you bill like a pro and make the invoicing process more efficient:
- Set clear payment terms: Communicate your payment terms upfront to avoid any confusion or misunderstandings. Clearly state when payment is due and any late payment penalties.
- Use professional invoicing software: Use invoicing software that automates the invoicing process and sends reminders for late payments.
- Provide detailed invoices: Include all the necessary information, such as the description of the work performed, hourly rate, and total amount due.
- Offer multiple payment options: Make it easy for your clients to pay you by offering multiple payment options, such as credit cards, PayPal, or bank transfers.
- Follow up on late payments: Keep track of your invoices and follow up on any late payments. Be firm but polite when reminding clients of their outstanding balance.
By following these tips, you can streamline your invoicing process and get paid faster. Remember, invoicing is an essential part of running a successful business, so it’s worth taking the time to get it right.
What are some common mistakes to avoid when billing clients?
Some common mistakes to avoid when billing clients include:
- Failing to clearly communicate billing terms upfront.
- Not keeping accurate and up-to-date records of billable hours.
- Not billing for all the services provided.
- Submitting bills late or infrequently.
- Ignoring or delaying follow-up on overdue payments.
It’s important to remember that billing mistakes can damage your reputation and financial stability, so it’s crucial to stay organized, transparent, and proactive in your billing process.
How can I improve my billing accuracy?
To improve your billing accuracy, consider:
- Tracking your billable time in real-time, rather than estimating after the fact.
- Using tools like time-tracking software or mobile apps to help you accurately record and categorize your time.
- Reviewing your invoices carefully before submitting them, to catch any errors or omissions.
- Communicating with clients regularly to ensure you’re billing for all the services they require.
- Investing in training or coaching to improve your billing skills and processes.
By making accuracy a priority in your billing process, you can avoid costly mistakes and ensure that you’re getting paid fairly for your work.
What should be included in a professional invoice?
A professional invoice should include:
- A clear and concise description of the services provided, including dates and times.
- A breakdown of charges by service or project, with a total amount due.
- Your business name, contact information, and any tax or identification numbers required in your jurisdiction.
- The client’s name and contact information, including billing address.
- Payment terms, including due date, accepted forms of payment, and any late fees or penalties.
- Any additional terms or conditions agreed upon in advance, such as retainer fees or project milestones.
By providing clear and comprehensive invoices, you can ensure that your clients understand the scope and value of your work and minimize the risk of disputes or payment delays.
How can I handle difficult or non-paying clients?
If you encounter difficult or non-paying clients, consider:
- Communicating clearly and directly with the client, using a professional and respectful tone.
- Offering flexible payment options or installment plans, if feasible.
- Seeking the help of a mediator or legal professional if negotiations break down.
- Documenting all communication and payment attempts for your records.
- Knowing your legal rights and responsibilities under local and federal laws.
While it can be frustrating to deal with difficult clients, it’s important to remain calm, professional, and proactive in finding a resolution that works for both parties.
