Are you the proud owner of a new business? Are you struggling with creating an invoice that is accurate and professional?
Just over 50 percent of small businesses survive the five-year mark. One reason for the high failure rate is their inability to maintain a solid cash flow.
Billing your customers is an essential part of your business operations. Here’s a guide to invoice writing that is sure to help.
1. Use a Template
When creating an invoice, one way to streamline your process is to use invoice templates. It can take a bit of time to set one up, but it’s worth it.
A professional invoice template will guide you to include the correct information on your invoice. You won’t miss a detail when you follow the steps.
2. Establish Your Brand
Every piece of paper or email you create is a marketing opportunity for your business. Your invoices must reflect your brand. Feature your company name and logo prominently.
As a startup business, it’s important to establish a professional presence in your customer’s minds, and your invoice is one way to do that.
3. Number Your Invoices
It’s important to keep track of your invoices, and an invoice number can help. If a customer has a question, it’s helpful to refer to a specific invoice rather than finding it by date or order number.
Invoice numbering is an important internal control. When you receive payments, it’s easier to apply them when referencing a specific invoice by number. This leads to better record-keeping and helps with cash flow projections in the future.
4. Add Contact Information
Help your customers contact you if they have a question regarding your invoice. When writing an invoice, include an email that you check regularly and a phone number where they can reach you.
5. Prompt Invoice Writing
The best time to create an invoice is when the job is complete. Details are fresh in your mind, and your customer will be expecting your invoice. If you delay, it can create opportunities to dispute an item.
The sooner you send out your invoice, the sooner your customer can send your payment.
6. Simplify Your Payment Process
If it’s easy for your customers to pay your invoice, they are more likely to do so right away. If you send out electronic invoices, add a link to your payment site.
Give incentives for quick payment, such as a discount, and be sure to note the due date of your invoice. Establish a late payment charge and be sure to follow through.
7. Respond to Overdue Invoices
Be sure to contact the customer as soon as an invoice becomes overdue. Maintain a professional tone and address their concerns when you contact them. Consistent follow-up will let them know your expectations for future payments.
Create Professional Invoices With Ease
Now that you know these steps to invoice writing, you’ll be able to set up a process that works for your company. Once you have created a system, you’ll find it’s easier than you thought it would be.
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