Effective invoice preparation is an essential aspect of income generation for small businesses. For this reason, you should develop a process for billing that is straightforward and efficient. Here are some tips that can help you accomplish this.
Devise a Productive System for Invoicing and Follow Up
Make it a habit to send out invoices as soon as you deliver products, finish performing services, or complete whatever milestones have been agreed on with your clients. The deadline for payment should be prominent. Keep track of the due date, and if the funds have not been received by then, send another copy of the invoice with a reminder that payment is late. Confidence with regard to invoicing indicates professionalism.
Include the Essentials
Prominently displaying your brand and logo on an invoice is appropriate, but it is even more important that you do not leave out any essential details. Besides the invoice number and date, these should include your company’s contact information and Tax Identification Number, the specific person to whom your invoice is addressed, a detailed list of charges, any taxes you have had to pay, and a total of the amount due. If you have a preferred method of payment, you should clarify that as well. Keep in mind that allowing an electronic payment option makes it easier for your clients to get the funds to you quickly.
Use Appropriate Software
To simplify the process of scheduling and sending invoices as well as receiving payments, use appropriate invoicing software. Printing and sending paper invoices takes more time, and physical copies can get lost, further delaying payments. Instead, the right software makes it easy for you to create an invoice using templates and to keep track of its status digitally. Your clients will be impressed with the professionalism of your approach, which may lead to more business in the future.
For more advice on preparing invoices for your small business, get in touch with GM Capital Group.