Back to Basics: Learning why you need an Invoicing System
In simple words, once you finish the project or event, an invoice is a bill sent to your clients.
The invoice points out what services have been given by you or the business, how much is due and when, and how the client will pay. Legally speaking, an account receivable is generated by an invoice. It is a credit demand for services rendered or provided goods. Although as a concept, the invoice method goes beyond these concepts. Stated in another way, invoicing is a way to professionally finish out a job or project that will clear the way for future business.
Why do we Send Invoices?
Outside of the legal consequences of an invoice, delivering invoices in a structured and timely way improves your odds of being paid quickly for a job well done and guarantees a stable cash flow is retained by your company. It's as simple as keeping a written report of how much they owe you to the client. Very clearly, it's a best practice that promises to be professional for you and your company. It's a tangible log of work done: something to turn to as your clients write you a cheque, or finish an ePayment, as well as a way to build a financial record for you. It is another way to communicate with the client, including contact information, payment conditions (and due date), and appropriate payment methods.
When is the right time for an invoice to be sent?
Invoices are usually submitted upon the satisfactory completion of work (we dig deeper into the idea of invoicing before or after a job in this article). In this scenario, you know that the customer is satisfied and that the project work has been done or the unfinished work has been agreed upon under a new arrangement. If your customer has already made a deposit, the amount of the invoice will be the negotiated amount you indicated in your quote, the total hours charged, or the balance of the agreed amount. At the end of a job, you can send an invoice by text, postal mail, or get it ready for delivery in person. Take note to figure out what style is desired by your client and submit your invoice in that direction.
What should be included in an invoice?
The basic components of every invoice are these:
- Include ''Invoice'' at the top of your note. The payment day of the invoice and the due date must be clear. (make the due date as seamless as possible, avoiding ambiguous words such as 'Net 30').
- An invoice number for your customer for quick referral and for your own records.
- Individual line items are completed with work so that the consumer can know precisely what you did.
- Service Date.
- The complete sum owed.
- Instructions for payment are provided either in the invoice note or in the email when the invoice is submitted.
- Say thank you: old school, but sophisticated, polite, and always appreciated.
So you now have a solid idea of the mechanism of invoicing and a competent invoice. To make the invoicing process even more streamlined, please visit www.mrbiller.com for your future invoice transactions.