Late payments are a major threat for 24% of businesses. They cost American businesses about $3 trillion every year.
Many businesses close because of cash flow issues, and they can be resolved by timely invoice payments. You can do your part by creating a professional invoice system.
The problem with many payment issues is that business owners create invoices that don’t look professional, so they’re not taken seriously by accounts payable departments.
If your business doesn’t have the trust of customers, you’ll have trouble getting paid on time.
It’s time to end late payments once and for all. Read on to learn how to create an invoice that gets your business noticed and paid on time.
1. Use an Invoice Template
A professional invoice starts with a well-designed template. Invoice templates that include your logo, company name, and information that remains the same on every invoice make it very easy to produce and invoice quickly.
You can copy the template and tailor it for each client.
2. Include Important Information
Invoices should have your company information and logo. The name and address of the client, and their tax ID number.
Each invoice should have its own number for tracking. Include the date of the invoice and when payment is due.
Then, you’ll add the product or service, description, and the amount of each product and quantity.
You’ll total the invoice, including discounts, sales tax, and the total amount due.
3. Double-Check for Accuracy
A top reason why invoices get paid late is that there are invoicing errors. These errors delay payment and take up more time because you have to resend the invoice with adjustments.
Don’t make this mistake. Take your time when you create the invoice. Look it over carefully several times to make sure it’s accurate.
4. Include Payment Instructions
You should give your clients fair payment terms. The best thing to do is to make it as simple as possible for the client to submit payment.
Write clear instructions on the invoice that tells clients where to send checks or how to pay by credit card.
If you have clients set up on automatic payments, then note the date when the payment gets withdrawn. This prevents a client from sending two payments for the same invoice.
5. Create an Invoicing Schedule
You don’t want to spend too much time on invoicing because you have so many other issues to take care of each day.
It helps to create an invoicing schedule to ensure invoices go out in a timely fashion. Depending on how many invoices you produce each month, a weekly or biweekly schedule would work.
Some companies choose to invoice on the 5th and 15th of the month to ensure cash flow throughout the month.
Easy Ways to Create Invoices
How can you create invoices that get noticed? Get paid on time by following the tips in this article. Use a template, set a regular schedule, and check for accuracy.
Once you start getting paid on time, you’ll need financial advice. Check out the blog for money tips today!