A social media invoice is a record of purchase that informs and allows the customer to pay for the social media services you have provided. A service invoice features details of the transaction while focusing on the specific services that were offered to that customer and the agreed amount. The benefit of creating an invoice is that it protects your cash flow while helping you maintain proper records and meet your tax obligations.
Before you start creating invoices for social media services rendered, you should have a procedure that involves setting up and organizing client accounts. Invoicing haphazardly will make the process harder than it should be. There are a few tips that can help you get started off the right foot:
Accounting software has made record keeping much more manageable. Besides being tools for record keeping, most accounting applications today feature a point-of-sale feature that allows you to complete transactions regardless of your location. Versatile applications work on both mobile devices and personal computers; thus you can update your records or even mail them from wherever you are. Managing your invoicing and sales thus is made much more manageable with an accounting application.
Although this seems like a no-brainer, some small companies overlook the need for a business account owing to the size of the business. A business account makes managing your money much more straightforward, plus it also gives you the ability to accept cashless payments. Without a facility to receive real-time cashless payments, your business will be in big trouble considering your niche is social media! Business accounts also offer facilities like overdrafts and loans which are not readily available for personal accounts. This step will give your company a financial advantage if you need extra funds within a short time.
Knowing their (business) names isn't enough. Before even thinking of drafting a social media invoice, make sure you know all the relevant information about your clients. Details such as their physical location, their phone numbers, emails, contact person's names as well as their various businesses that are on social media platforms.
Before sending the social media invoice, make sure that the client is already aware of the payment channels available. Also, if there are special terms and conditions, let them know beforehand. For example, if payment should be made within a fortnight of receiving the invoice, let your customers know. Let them know if there are allowances for partial payments and if there is a refund policy, let them know too. Of course, all these factors should be dealt with while you are setting up the business before you even bill your first customer.
Always take time to think about disputes and research on viable solutions. Always have an open communication policy with your clients so that they can give feedback if they believe there is a better way of handling their business. This step reduces the chances of delayed payments due to disputes or non-compliance by the client. It also shows that you care for the clients.
There are a few details all invoices should not miss. These details include:
1. The word ‘invoice' must be visible on the document.
2. The particular social media invoice's unique identification number.
3. Your company details including names, address and contact details. Similar information of the customer should also be included.
4. A description of what you are charging for.
5. The date(s) the services were offered.
6. The date of invoicing (the date on the invoice).
7. The total amount being charged, including value-added tax if applicable.