Receiving payments on time stands out as an important part of the contract. It is also key in maintaining a positive cash flow for your business. This is irrespective of being an independent contractor, a small proprietor, or a small business. Once you design an invoice and put in place a working system, seeking and receiving payments becomes easier to manage, according to this article.
To remain on top of your invoicing, you require to incorporate the organization as part of your design. That way, if you are on your own, with no invoicing police on call, things will not fall apart. Designing is best carried out with these five processes that will result in a perfect bill for your client every time. Mastering this process will lead to streamlining of the billing process. This will let you concentrate on other critical aspects of your contracts on behalf of your clients.
One: Begin With The Template
From an invoicing software online, pick that template that you feel comfortable working with. There are numerous available online, where some are free while others come at a premium. You could also create one from Excel or Word.
Remember to stick to that template throughout, so that you can allow your clients to familiarize themselves with your invoices. This familiarity will allow them to find pertinent information easily, according to this article.
Two: Current Contact Information Is Critical
A formal header containing contact information for the business is apt. On it should be the business name, mailing address, email and phone number. The opposite end should sit your client's contact information. This should also include enterprise name, relevant personnel email, mailing address and a telephone number where the person handling your account can be reached.
Three: Incorporate An Invoice Numbering System And Dates
Simple as it could sound, creating a unique numbering system guarantees processing of your invoice. Remember to make it sequential and consistent to allow management and tracking.
Dating is a critical component of the system. Dates should identify when an invoice is prepared and when a particular aspect of a contract is completed. It should also identify when your business should expect a payment with a specified period such as sixty, forty-five, or thirty days from a certain date.With this system in place, tracking outstanding and overdue payments becomes easy. An additional component here is a written agreement put in place before invoicing commences. With this agreement, payment date expectations remain clear to both you as a service provider and the client, as stated in this article.
Four: Indicate What Payment Method Is PreferableNear the bottom of your bill, indicate how you would like to receive your payments. Diverse methods are available that include online payments, credit cards and checks. Working with online invoice design systems makes this easier. This is because it does away with scripting and sending checks by your client and you having to deposit them.
With some secure online designs, you could securely store your client's information. This would allow to you charge their credit cards in payment of services rendered. This way, you would not require re-writing payment information every time you needed to create an invoice.
Five: Incorporate Itemized ListsThe biggest portion of each invoice indicates services rendered. This is through a list composed of descriptions of line items. The description covers service and date rendered, your rate, and a subtotal for that line item.