Invoicing your clients is crucial in maintaining business relationships, building your business, and enabling it to succeed. Invoicing is a large part of any freelance or self-employed person’s work routine, as it’s your method of income. Professional invoices show that your business is experienced, legitimate, and competent in business transactions. And most importantly, they show that your business is trustworthy.
Invoices contain all the information of the business transaction between you and your client, so knowing how to generate invoice will benefit your business in many ways. In addition, a professional invoice will give you a greater chance of returning clients, and these clients will recommend you to others. Here are five tips for invoicing your clients professionally.
1. Make use of an invoicing software
Invoicing software makes invoicing clients manageable and keeps them organized. Manually handling invoices can become overwhelming, and you may lose track of which invoices you’ve already sent and which ones you haven’t. Invoicing software allows you to create professional invoices, store client information, keep track of your invoices, and send them to clients with ease. Software also makes following up invoices simple by sending automatic payment reminders to clients.
2. Provide a company name and logo on the invoices
A company name and company logo on your invoices looks extremely professional and is a sign of a trustworthy business. Clients who receive invoices with company names and logos are more likely to make payment quickly and will be less hesitant to do so. Company names and company logos also make it easier for your client to find information on your company.
3. Offer different methods of payment
Offering multiple methods of payment for clients is appealing as it’s convenient and provides the client with options. Different payment methods include cash, credit card, bank deposit, check, or through payment gateway services such as PayPal. A potential client is more likely to use your services if there are more than one payment methods available.
4. Create a payment policy
Creating a payment policy and adhering to it allows for small margin for error or miscommunication with your clients. A payment policy should be set from the beginning, and the client should understand the policy before you enter into a business agreement. Having a policy will ensure that both yourself and the client are aware of the terms and that you’re both able to agree on the payment due date. Most businesses require payment within 30 days or less, though choosing a payment due date that is suitable for you is best.
5. Provide all details of the business transaction on the invoice
Providing all the essential details on each invoice is important for clear communication and future references. Listing the goods or services provided to the client breaks up the cost so they can see what exactly they are paying for. Other important information that should be on the invoices includes:
- Your contact details
- The clients contact details
- Invoice number
- Date of invoice
- Total payment amount due
- Due date of payment
- Tax information
- Terms of payment
- Payment methods
Invoicing clients and keeping track of these invoices is important to ensuring your business continues to thrive. Following these five tips on how to invoice your clients professionally will help you to succeed in this crucial business task. All invoices should be taken seriously and should be checked over before they are sent to each client, as one small mistake in the information can potentially cause an issue.