6 Tips For Better Invoicing
Invoicing is pretty much a very important part of the business and every serious business person or outfit could come up with ways to make invoices. Here, however we will be considering the different ways that adopting will help with better invoicing.
Avoid ambiguity:
It will be the most effective when invoices are in clear cut formats rid of vagueness and ambiguity. The details needed to be put on the invoice must be clearly and aptly stated in such a way that it will be easily understood. To achieve this it will necessary to put out clearly such details like contact information (name, office address, email address, website and any other contact details) in the invoice, clients’ contact information, particulars of the service(s) offered and breakdown of the financial implications (cost per unit, quantity, total cost tax/VAT [if any], discount [if any], due date/deadline), agreed terms of the transaction and any other detail that needs to be stated.
Payment plan:
A payment plan is always a good thing to consider when invoicing as it allows clients to see a possibility of a flexible way of payment. It also makes clients quite comfortable as much as it can serve as a boost or motivation to pay as promptly as possible. In this new age and time of various ways of payments, it would be quite convenient to offer such payment plans as cash, cheque, bank and mobile transfers, POS, PayPal etc. Options like this in some way makes clients comfortable with how to make payments.
E-Invoicing option:
Paper-based invoicing in this age and time is not as effective as e-invoicing as it could quite the work keeping paper trail to make for accountability and proof that such invoice was sent and received. With e-invoicing one can from wherever send and receive an invoice and (depending on what app or software is used) get proof of such invoice being delivered and even received/seen. This way you can send invoices even on the go and as promptly as wanted. This also makes sending reminders easy as most e-invoicing software have options of auto-reminders as may be set by the user.
Know who to invoice:
With invoices, it is quite important to send the invoice to the exact person who the invoice is to get to. Most times when an invoice is sent to the wrong person there is a higher chance of that invoice not being honored or the payment to be delayed on that excuse. To this end, it is mandatory to know whom to address the invoice to as well as whom to deliver it to so to avoid misunderstanding when it comes to being paid.
Keep records:
Even where there is or has been a great business relationship with some clients, it is still very good to keep a good record of the work being done and at what times these works are being done. Reason being that these records will help with times where there is a situation that may require a reconciliation of accounts and especially for personal use, so to allow one know what has been done, what has been paid for if so and what is left depending on the arrangement reached at the agreement stage of the transaction.
Late fee:
This is the fee charged when payment is not made on or before the deadline date. It allows the client to sit up as well as motivates the client against defaulting on payment as such default may attract extra charges. Most new business ventures and freelance business outfits are advised against this or to ease out on the strict use of this, however, it adds value to the service being offered and also stands a greater chance of helping make clients know not to owe and to pay as at when due. These late fees must be included in the invoice and must have been discussed with the client from the inception when the service(s) was being contracted as the disclosure of this makes the client aware of it thus makes him/her liable when he/she defaults.
As important as invoicing is, it is also necessary that the one you make your invoices make you look as serious minded and as professional as you want your business to come off. It is easy to be good, but what makes you outstanding is doing better if not doing it the best, adding these tips certainly guarantees a more efficient way to run your business and will definitely help a great deal with your invoicing.
