If you want your clients or customers to pay you on time every time, make sure you send a perfect invoice.
Delayed invoicing is one of the primary causes of cash flow issues. Your total sales don’t mean a thing if you can’t get people to pay you for your products or services. Your invoice is a document that represents your company’s image to your clients. It should be accurate, easy to read, and sent promptly after your services are complete.
Avoid any unnecessary confusion. Make sure your invoice always includes these 7 things to get paid on time, every time :
1. Your company name and contact information
This seems likes a no-brainer, but it’s important to include your company contact information on the invoice. Simply because your client needs to know who it’s from. Include all of your contact information to make it easy for them to contact you if they have any questions.
2. Company Remittance Address
If you have a physical address that is different from your remittance address, make sure it’s obvious where to send the payment.
3. Client’s Name and Address
In the off chance, the invoice is opened by the wrong person, make sure you include the client’s name and address on the invoice so they know it was intended for them. If possible, try to address it to a specific person. That way, one person is held accountable for handling the payment.
4. The Invoice Date and Due Date for Payment
It’s important to keep in mind that everyone has their own system for keeping track and paying their bills. In order to stay organized, every invoice should include the date it was sent and the due date for payment. Depending on the type of business you operate, you might need to include the date of service, as well.
5. Itemized List of Services
People what to know exactly what they are paying for and how much it costs. Be as specific as you can, depending on the type of product or service you provide.
6. Payment Terms
Be explicitly clear about how you expect them to pay and in what form. You should always establish payment terms before providing service.
7. A Simple Thank You
Asking someone for money can be uncomfortable. Adding a simple “Thank you for your business!” is polite, and lets your customer know you appreciate them.
Timely and accurate invoicing is one of the most important factors in the success of a company. Don’t wait until your first client is ready to pay to decide how you will accept payment. Draft a mockup of your invoice and start developing a system that works best for you. However, if you realize you are putting off sending your invoices because it is taking up time that you otherwise need to be spending working on billing your bussienss, you might want to consider outsourcing your invoicing.