When it comes to learning how to write an invoice, it’s important to note that this is possibly one of the most important tasks on the to-do lists for business owners. In fact, you can make the argument that it’s the most important task-after all, at the end of the day, what’s more important than getting paid?
Despite the importance of invoicing, many entrepreneurs and business owners manage to get it wrong. Still others fail to capitalize on a golden opportunity to advance their brand, get repeat customers, create referrals and draw new business.
Given the importance and the possibilities at hand, let’s take a look at the details how to write an invoice
Get the Info Right
It seems obvious that all your company’s information should be on the invoice along with the charges, but it’s amazing how often some of the key essentials slip through the cracks.
The baseline of what should be included starts with your company’s legal name, along with your numbers and social media information, then finally your client’s name and address, all at the top of the page. The invoice should be numbered along with the date it was issued, and it should specify the amount owed, the payment due date and the terms of the payment, throughout the body of the page.
Should you need to find an invoice template PDF, you can do so using this link.
Finally, there should be a breakdown of the products or services you provided, along with the applicable tax numbers.
The Invoicing Process
While setting up an invoice might seem complicated, generating an online invoice is actually quite simple. Software products like Invoice to go provide you with a template pdf, and it’s easy to access the necessary instructions.
Moreover, doing this makes it easier to change the format of your invoice. The simplest example of this would be a move, which can be a nightmare if you’re still using paper invoices.
Instead of having to throw out your existing invoices and pay for new ones, you can access your template and just type in a new address, and even create a new invoice online if you have to do that.
Get the Timing Right
Anyone can learn how to write an invoice, but one of the most important best practices when it comes to invoicing is to send the invoice immediately.
Also, define your best practices when it comes to how you send it. Most companies send a physical copy along with a digital copy, and both should contain a copy of the contract you’ve made with your client.
Sending it right away also verifies the terms for payment that you’ve laid out. A delay in sending can cause difficulties, and it may even invalidate your terms.
Automate Your Invoicing
In today’s world, there’s no reason not to automate your invoicing. Automating the process takes the human element out of the equation, which means your invoice gets sent out in a timely fashion and there are no errors in what goes out.
Moreover, today’s automation software allows you to create whatever kind of template you want. You can choose something simple and boilerplate, or go with a more sophisticated template, depending on your business needs and what you want to accomplish with your invoicing.
Automated invoicing can also simplify your billing process. For those clients with whom you do repeat business, automatic billing can ensure that your funds arrive in your account on a guaranteed date.
Finally, automated invoicing can help you track your business data. You can instantly access the amount of the invoice, along with the client’s payment records. This information can go straight into whatever accounting system you use for your business, which can help you improve your profits by using automated invoicing to become more efficient.
Track the Time Savings Using an Online Invoice
One of the biggest advantages of automated invoicing is the time savings it provides. Paper billing systems often require hours of printing bills, then folding them and stuffing them in envelopes, not to mention the time required to purchase and add stamps to the invoice when sending them out. After learning how to write an invoice, create an online invoice using an invoice template PDF so you can set it up once, and then copy the same template moving forward.
Automated invoicing systems eliminate all that. They can generate notifications of what’s being done and when it’s happening, which means you don’t have to take on that time-consuming chore.
Finally, another hidden time-saving benefit with automated invoicing is the ability to verify payment information.
If a payment doesn’t go through right away, you find out about it immediately, which means you can act quickly right away to take the necessary action rather than lose hours and even days trying to figure out what happened and whether and when you’ll eventually get paid
Get the Charges Right
Another reason to use automated invoices is to make sure your charges are accurate. If you had to spend extra hours doing research, acquiring additional parts or using contractors or freelancers, these charges should be reflected in your automated invoices.
Invoices are also a valuable tool to set your payment terms. Automated invoicing makes it easy to spell out the number of days within which payment must be made, and it can clearly explain any charges for late payment.
Accuracy in this area can also help with follow-up. If you don’t have an automated invoicing system set up with a given client, you can still spell out the late charges, any interest that might be added along with any other necessary information.
Use Your Invoice for Branding
One of the best parts of automated invoicing is the opportunities it provides when it comes to your brand.
You can easily include information about your products or services, and displaying your logo prominently means your clients will be more likely to use you again. Set up an invoice template PDF to have your branding ready to go for all future online invoices.
Automated invoice also makes it easy to include information about any special offers you may have on the table. Another common tactic is to offer a small discount for early payment or payment in full for larger amounts, and you can include information about any other special offers as well.
Automated invoicing can be used for cross-promotion as well. If you provide a service that’s related to the one for which you’re invoicing, you can mention that, along with possible discounts for products you sell that are related to what you do.
To sum it up, how to write an invoice is a simple task once you get it set up. Make sure to look at your invoice as both a necessity and a tool. Take the time to automate it, and make sure to capitalize on all the extras that can go into invoicing to help you grow and expand your business.