Small businesses have to deal with invoices even as big organizations do; the only significant difference might be the method employed. Large companies may employ complex invoices and accounting solutions, while small ones may result in paid solutions. The truth is, a basic invoice template might serve efficiently if you run a small business.
Freelancers and independent contractors may not purchase expensive software to achieve the seamless billing of their clients. There are affordable invoicing services online, and free tools like Microsoft Word and Google Docs cloud-based solutions are also available. If you provide customers with goods or professional services, you must deal with invoicing, and it's not as simple as it seems.
Invoicing customers is not just about getting paid; it's about getting paid promptly. Different studies have shown that the majority of businesses don’t pay their invoices earlier than twenty-eight days of receiving the bill. So, when creating your basic invoice template, try to make everything humanly possible for your client to respond promptly with payment.
When doing your monthly accounting, the fewer account receivable in your record, the better for your business. Your cash flow will be unpredictable if you have too many unpaid invoices. Not only that, but it may also affect the financial status of your business. Here are simple invoicing tips for applying when creating your basic invoice template to boost prompt payment.
Save your clients some time trying to understand from whence come to an invoice. Provide our current and comprehensive contact information on all your templates before sending it to clients. It is the least of tasks on your part to facilitate timely payment. Also, including the correct information of clients on the bill makes it easier, claiming responsibility for the payment.
It will help if you discuss your payment terms and conditions with a client before you supply customer goods or provide a service. Once you do that, you are free to include the exact terms you agreed with clients on your basic invoice template. Payment terms include a preferred payment method and currency if sending the bill to an international client. Also, state if the payment is a one-time of recurring type and makes your payment due date clear. Payment is due in 30 days or 45 days seems to work better than "Net 30 days."
You are requesting a phone call or email plus delay in payment if your client finds an inconsistency in language or policy on your basic invoice template. For instance, “due in 30 days” for one stage of your invoice and “due upon receipt” in another stage brings confusion. Review your invoice and ensure the details are clear and matching with other sections of the document.
You don’t want your client to start guessing or calculating anything when they receive your invoice. A professional basic invoice template would highlight and briefly describe the goods and services supplied. Also, it shows the quantity, rate, fees, the unit provided, and other information needed to settle the bill.
Accepting a wide range of payment means you are making it unbelievably convenient for the client to respond faster to your invoices. Give options for online payments and provide user-friendly systems with links to payment gateways for easy navigation. Accepting online payments from clients greatly cut down on “totally unacceptable” excuses for leaving invoices unpaid.
Include a note to appreciate your client for the business. It costs you nothing to say “thank you” to a customer and discreetly notify them when you expect payment.