If a client hasn’t paid their invoice within 90 days of you sending it, they’re probably not going to pay it. There’s only an 18 percent chance of that happening, so following up on late payments is vital for your cash flow.
Invoicing is an essential part of your business operations, so it’s important to understand how to invoice a client and when. Here are some crucial facts about the invoicing process.
Prompt Invoicing Encourages Prompt Payment
Invoice your clients as soon as the job is complete. The details of the project will be fresh in their memory. Most people expect to pay for work when it’s finished, so they won’t be surprised if you present them with a business invoice.
If you take too long to send your bill, it can irritate some customers. They may not manage their cash flow very well, and they might have forgotten there was an amount owing.
There are three main ways to send an invoice to clients.
Invoice In Person
When you have completed the work, you can quickly create an invoice and give your client a paper copy or send it via email. Often a client will pay you on the spot or follow up with a payment that evening.
You can create an invoice on your mobile device using a template or invoicing software. Be sure to include details of the work done while the information is fresh.
If you like to prepare your invoices in batches every few days, you can invoice a client and send it to them via email. Your customer will appreciate receiving your invoice within a few days. Don’t delay more than 48 hours to encourage quick payment.
If you are working with a regular customer, you may have a routine of sending out a monthly invoice for your work. That’s great if you have a contract or do recurring work. A monthly invoice reduces paperwork and administrative time.
The downside is the customer won’t make payments throughout the month as you complete jobs. They’ll likely follow the terms on your invoice and pay in 30 days. As a business owner, you may want to reconsider this decision to improve your cash flow.
Issue Professional Invoices
Each small business invoice needs a number, a due date, and the total amount owing to your business. Include your logo on your invoice to reinforce your branding. Be sure to add your business contact information and clear payment terms.
Add contact information for your customer and issue the bill to the client’s correct business name. Send it attention to the person who makes bill payments.
If you issue clean, professional invoices, your client will be more likely to pay them sooner. If your invoices are missing information, there may be a delay in payment. Here’s a free invoice template that will help you create invoices consistently.
How To Invoice A Client
When you look into how to invoice a client, you can see the difference an invoicing template will be for your business. When you do your research, you will find the style and format for your operations.
If you enjoyed learning how to get the most from your invoicing, our blog has more advice. Check it out today!