Having a proper virtual invoice template for your business is essential in helping you save both the time and getting paid.
If you're a freelancer or a consultant, you might find it challenging to find a way to bill your clients and get paid on time for all the work that is done by you. To tackle the issue, it is important to have a professional and streamlined solution.
That's where a virtual invoice template for freelancers comes into the picture.
Why is the virtual invoice template needed?
Using virtual invoice templates, you can easily create detailed invoices to start getting paid for your services without any delay. It works as a legally admissible proof that your services were delivered and will be paid for.
Unlike the traditional invoice process of manual and time-consuming invoice generation, virtual invoicing and benefits of adopting virtual payment platforms help you automatically generate invoices and email them using a billing or accounting system.
Benefits of a virtual invoice template
A virtual invoice template can help you save a lot of time, as it is already prepared, and you only have to add relevant details for each client. Below are some of the other benefits of using a virtual invoice template-
- Allows you to organize client accounts and statuses
- Helps to keep a record of all customer purchases
- Helps to create a log of all outstanding debts
- Allows you to bill clients on a regular basis
- Simplify the bookkeeping process
Essential elements of a virtual invoice template
A virtual invoice or any freelance invoice template should include the following elements among other things:
1. Complete name and address of the company in the virtual invoice sample
The invoice address typically refers to the physical business premise where the service provider sends the bill, receipt or invoice, and where the customer can be contacted in case of any kind of query or dispute.
2. Date and invoice number in the virtual invoice sample
This section of the virtual invoice helps to identify the date (when the invoice was generated) and a practical invoice number that allows the service provider to stay well organized. The number must be unique to each invoice for clear identification, and the service provider must keep a record of the numbers and references used.
3. A description of the services in the virtual invoice sample
This section should have a clear description of the services being invoiced, with each item/service mentioned separately for clear identification.
4. Details of how you would like to be paid in the virtual invoice example
In this section, the service providers need to list the different ways that an invoice can be paid (bank transfer, cheque), including the bank account reference.
5. Details of the total amount to be paid (services and expenses) in your virtual invoice example
The section mentions the sum total of all the services listed on the invoice.
6. Payment terms in your virtual invoice example
Payment terms are usually defined in your terms and conditions section and agreed upon by your customer. These are your terms for the length of time to the full payment. For example, payment to be made within 30/45 days.
Preparing, compiling and sending invoices to customers can be a stressful and time-consuming process, and yet it is something that's unavoidable.
But using a virtual invoice template or online invoice software offers several benefits that include helping you to get paid on time and in full. It allows you to let your client know exactly what they are being charged for, how much are the charges for your services, and what the time-frame is, during which the amount needs to be paid.
It also helps to establish the seller's (freelancer/consultant) right to payment. An efficient virtual invoicing system offers sufficient legal protection to the service provider and enables businesses to substantiate their reported income.