Getting paid can be one of the hardest things for home based business to achieve. Having a good invoicing system in place can be key. Here are a few tips for creating invoices that should help increase your monthly bottom line.
The word “Invoice” should be the first thing the client sees. Sounds very obvious but many company’s invoices do not stand out as a bill, so they get lost in piles of paperwork on somebody’s desk, forgotten and most importantly, unpaid
Do not forget to date the invoice. Payment terms you may want to state will be based upon this, so it is crucial this is included to avoid misunderstandings further down the line.
Contact information is critical and should be easily found on the invoice. Payment methods should be clearly outlined, and the more options you can offer (cash, check, credit card, even Paypal) the better.
Services the invoice covers should be stated in detail. Lay out each charge individually, with the hours worked, or the flat rate agreed clearly marked. This will save phone calls from clients confused about what they are being billed for; delaying payment unnecessarily.
The full amount owed should be stated clearly, including any applicable taxes. Do not send invoices that instruct clients to add their own sales or other taxes. You risk further confusion, delayed payments, or incorrect payments.
Payment terms should be clearly stated. If you require payment within 30 days then make sure it is on the invoice. You may also consider offering a small discount for those who pay early, a certain number of days before the due date stated.
Most importantly keep track of all the invoices you send out and do not be afraid to follow up when payment is late. Do not just send invoice after invoice. Take the time to pick up the phone to speak to the party involved personally. It may simply have been overlooked or misplaced and sometimes a friendly phone call is all that is needed to get the check in the mail.
