As a freelancer or small business owner, you know how important it is to get paid on time for the services and products you provide to clients. The key to prompt payment is issuing an invoice that clearly and professionally communicates the work that was done.
An effective invoice should have a professional appearance, clearly state what services or goods were provided, the amount due, and include all necessary billing details. It needs to be easy to read and understand to avoid confusion or delay.
Creating the perfect invoice that gets paid quickly requires focusing on content, format, and overall clarity. This guide will walk you through the steps to produce an invoice that will get you paid on time, every time. With a little practice, you’ll be writing professional invoices in no time.
How to Format Your Invoice for Maximum Professionalism
To ensure your invoice gets paid promptly, formatting it professionally is key.
First, include your business information at the top of the page – your company name, address, contact details, etc. This establishes your legitimacy and allows the client to easily get in touch if needed.
Second, include an invoice number for your records. Number invoices sequentially to keep track of payments. Also include the invoice date, the client’s billing address and any reference numbers like PO numbers.
Third, clearly state the services or goods provided, including details like item descriptions, unit prices, quantities, and total costs. Use double spacing to keep this section easy to read. For example:
Website redesign
- Project management: $2,000
- Wireframing (10 hours): $1,000
- UI design (15 hours): $2,500
Fourth, include payment terms such as a due date and any late fees if not paid on time. For example, “Payment due within 15 days. A 5% late fee will be charged for payments made after 30 days.”
Finally, include a clear total amount due. For example, “Total Due: $5,500”. Make this stand out by using a larger font size, bolding, or placing it in a box.
Following these steps will result in a highly professional invoice that provides the necessary details for your client while optimizing the chances of on-time payment. Your cash flow and business will thank you!
Details to Include on Every Invoice
To ensure your invoice gets paid promptly, include all necessary details.
- Customer Information
List your customer’s full name and address. Include a point of contact, billing email address, and phone number.
- Invoice Number
Assign a unique invoice number to help you and your customer keep track of the invoice and for easy reference in any correspondence.
- Date of Invoice
The date you are sending or emailing the invoice to your customer.
- Description of Services or Goods
Provide a clear and itemized description of the services or goods being billed. Include relevant details like hours worked, rates, quantities, and unit prices. Group items whenever possible.
- Total Amount Due
The total amount owed for the services or goods billed on that specific invoice. Clearly state the total due in large, bold text.
- Payment Terms
Specify your payment terms, for example, “Payment due within 15 days of receipt of this invoice.” Be very clear to avoid confusion or delayed payment.
- Payment Methods
List the payment methods you accept, such as checks payable to your company, ACH or wire transfer, major credit cards, etc. Provide relevant account numbers or links to make paying as convenient as possible for your customer.
Including all necessary information and payment details on a professionally formatted invoice helps establish you as a credible supplier and encourages your customers to remit payment promptly. With clear communication and an easy to understand billing process, getting paid on time will become standard procedure.
FAQ: How to Write an Invoice
When invoicing a client, it’s important to provide a professional and detailed invoice that clearly communicates what services or goods were provided. An invoice that is concise yet thorough will ensure you get paid promptly.
What information should an invoice include?
An invoice should include:
- Your business name, address, contact information
- Invoice number (for your records)
- Client name and address
- Date of invoice
- Description of services or goods provided
- Unit price for each item, hours worked or rate
- Quantity of each item or service
- Total amount due
- Payment terms (e.g. Net 30 days)
- Itemized total
- Total amount due
How should I format the invoice?
- Use a simple yet professional font like Arial or Times New Roman, size 10-12 point.
- Organize information clearly in sections. Use spacing, borders or shading to distinguish sections.
- List services, hours or goods in a table with columns for description, unit price, quantity, and total.
- Include your business logo for a professional touch.
- Double check for any errors or typos before sending.
We recommend following a template for your first few invoices both to save formatting time and to get a feel for what a good invoice will look like. Google Docs has a number of templates that can be useful for any small business. Here is an example of their specific Freelance Invoice Template.
How do I ensure I get paid on time?
- Email or mail the invoice as soon as the work is completed or goods have shipped.
- Be available to answer any questions the client may have regarding the invoice.
- Provide clear payment terms, such as “Payment due within 15 days of receipt of this invoice.”
- Follow up with the client a few days before the due date if you have not received payment.
- Charge late fees if the payment terms are not met, but only do so if specified in your original agreement.
Following these best practices for writing and sending a professional invoice will help streamline the accounts receivable process and ensure you get paid promptly for your work. Let me know if you have any other questions!
How should I Send My Invoice?
It will likely make the most sense in these modern times to send your invoice via email. If you are already signed up for a legal document managing service like BlueNotary, you may choose to send it through their just like you send an MSA or any other agreement document, but generally speaking, sending via email should be just fine.
Conclusion
As a business owner, you know how important effective invoicing is to getting paid properly and keeping cash flow steady. By following the best practices outlined here for creating a professional, comprehensive invoice, you’ll set yourself up for success.
An invoice that is clear, accurate and timely is more likely to get paid promptly, allowing you to keep your business running smoothly. Applying these tips to your next invoice can help take the stress out of the billing process and ensure you get paid what you’re owed.
With consistent, high-quality invoicing, you’ll build great relationships with your clients and maintain a steady source of revenue for your business.
