It takes a lot of skill to design an invoice for any work you have done. Whether you pay somebody else to design the invoice or do it yourself, the main issue is to do it in a way that guarantees prompt payment. Some clients take too much time to settle an invoice you sent eons ago. Other clients respond with payment almost as soon as they receive the invoice. You can do something about such a situation and ensure that all clients pay on time, as per the list Forbes created. One tool worth using to guarantee this is learning how to design an invoice free.
An invoice reminds you what your client owes you. It also reminds the client the money you expect him to pay. The sales and profit margins might be hefty, but this will mean nothing if you don't prepare invoices and send them to your clients on time. You need money to purchase inventories, pay employees and cater for the out of pocket expenses. Where else will the money come from if not your clients? How else will you remind clients that they owe you if not with the help of a professionally prepared invoice?
The format ensures you prepare an invoice that the client will have no problem with. Failure to do this would mean that the client doesn't pay you on time despite having finished the project the two of you were doing together. The purpose of invoicing customers is to be paid for the work you already did. A well-prepared invoice should serve one major purpose – that of increasing your chances of being paid on time. For the invoice to do this, it must feature the following three vital elements:
What this means is that the invoice should establish the work you did and delivered, while indicating the monies the client owes you. Apart from these two, the invoice should also establish the fact that the client is committed to making payments as agreed. Your chosen format must have no trouble stating the work you delivered while referring to the agreement signed between you and the client. A good format helps you use the correct language in indicating the customer's commitment to pay what he owes you.
Defining the process
Customers fail to pay what they owe accidentally or intentionally. This happens all the time that you would develop migraines trying to think of the reasons for this. The original agreement might indicate the date when payment is due, but this isn't a full-proof method of making the customer pay on time. Don't wait to send the invoice to the customer on the due date. Instead, send it some days to the due date. This way, you have ample time to send reminders to the customer thus making it harder for him to forget. This strategy guarantees timely payments. Here are ways to handle clients that are frustrated or upset.
Obstacles refer to the excuses the customer might make to avoid paying on time. Learning how to manage the excuses instead of allowing them to discourage you is a sure way of ensuring your business remains alive. A good invoice format helps you predict and expect excuses, thus allowing you to develop the mechanisms for handling them. This way, the customer has no choice other than to settle the payment he owes you. The most common excuse a client will issue is disagreement with the details of the invoice or the work you say you did.
Therefore, follow this guideline to ensure your efforts don't go to waste. Use this to guarantee timely payment by the client each time you send an invoice. It's easier for you to help the client settle his account on time every time. According to CBS News, you shouldn't be vengeful, angry or personal with any client who doesn't pay on time. CBS News recommends working with instead of against the customer who doesn't pay on time. A good format espouses the importance of communicating regularly and in writing while keeping records of everything.