Chapter 5

Invoice Etiquette For Small Business Owners

Author: Riddhi Patel

Sep 17, 2021

What is Invoice Etiquette?

What’s more challenging for small business owners rather than completing your job? – Getting an invoice paid on time.

Invoice etiquette helps you track late payments and makes it easy to receive payments on time regularly.

Invoicing etiquette is solely responsible to maintain a high level of professional communication with your clients.

A way that makes it easy to receive payments on time is invoice etiquette.

Invoicing etiquette allows you to create and maintain professional communications with your clients. This builds trust and leads to repeat business and referrals. Moreover, it allows you to provide professional invoices to your clients.

7 Invoice Etiquette For Small Business Owners

You are going to benefit more from it by gaining the customer’s trust and also build a lasting relationship with them while following invoicing etiquette.

7 invoice etiquette for small business owners

  1. Use The Best Software for Your Business

    Your invoicing etiquette game should be strong, and when dealing with every client to achieve this, you need a reliable online invoicing tool.

    The invoicing software will be responsible for taking care of financial and invoicing demands. You’ll come across many invoicing software solutions that allow you to create invoices for your customers. But you need to select software like InvoiceOwl that brings convenience in dealing with improving the cash flow.

    It has been designed to help your firm improve by generating and sending out invoices, and also help you with necessary follow-up on any client that is issued an invoice to pay on time following invoicing etiquette.

  2. Set Clear Terms and List Your Services

    In your invoice, you must include everything that client is expecting. You must mention clearly the due amount, payment cycle, and most importantly the due date.

    The invoice you create must be something that makes it easy for your client to know the business terms at the beginning of the transaction.

    Any surprises or charges that were not discussed at the beginning may cause an issue. Particularly with a new client, it’s crucial to have a conversation regarding payment terms and conditions, methods of payment, and payment due dates.

    Listing your services allows the client to make an informed decision in what they’re looking for. It’s essential to be upfront about the cost and services with each client at the beginning; otherwise, you can risk a disgruntled client.

  3. Create And Stay By Your Policies

    As a business owner, your priority must be to create invoice policies such that there are no significant changes for a long time. If you change constantly, your customers get irritated, and there are chances of losing them. So, make a habit of creating a robust policy and sticking to it.

    If you feel that you require change for some reason, then you must inform the customers before sending them. It’s a sign of professionalism for both (you and your customers).

    The best way is to create customized invoices, and that is possible by using online invoicing software. Such software solutions will guide you from creating an invoice for your customers from scratch. Remember that you must include your business name, address, phone number, and email address—this way, your customers know exactly how to get in touch with you if they need to.

  4. Make Payment Convenient For Your Customers

    In your invoice, you must include the payment details that make it easy for the customers to pay on time. You must define the payment methods in your invoice that feel reluctant to pay, and this may sometimes lead to overdue payments.

    Online payment is one of the easiest and safest means available where your client can pay wherever they are. Some online invoicing software has various gateways for online payment. Even invoicing software like InvoiceOwl offers payment gateways like Stripe.

  5. Be Courteous In Your Dealings

    While you’re dealing with a client, you have to do so with courtesy. Being polite and honest is one of the keys to securing yourself as a long-term client.

    With politeness, you will pay attention to the client’s details and go the extra mile in making them satisfied with your service. Leaving a good first impression will make a customer want your service more.

    Also, be thankful to your client when you finish negotiating.

  6. Ask for Advanced Payment Upfront for Large Projects

    Working on big projects is always a good experience to help you improve your expertise.

    Although, you’ll have to take your time in executing it and be efficient through the course of the project. In a situation like this, you are free to ask your customers for an upfront payment.

    The amount you’re demanding should be invested in the same project, and this will help you move faster with the project.

    To keep track of all upfront payments you’ve received from your customer, you should send them an invoice of already-made payments and the remaining balance. You can also forward them credit notes through the invoicing software.

    Invoicing software is efficient in computing costs and drafting out estimates for clarity’s sake. InvoiceOwl is an all-around program that helps you manage the cash flow and keep track of every other business involved.

  7. Politely Follow-up For Payment Due

    Sending invoices is not the only thing you should be good at, as there’s more to sending an ideal invoice. It is your duty to track the sending progress of the invoice, whether it has been sent, received, or has been viewed by the customer.

    You should remind the customer about the due date for the due amount so that they won’t forget. You can set an automatic reminder for every due amount so that they can be sent to respective clients. With this act, clients will appreciate your professionalism.

    Your journey to becoming a successful business person will peak if you take each of the aforementioned steps. Depending on how you take the steps, you’re either getting closer to your dream or edging away if you don’t stick to them.

    Every small business needs time, hard work, and smartness to get to its peak. With the right tools at your disposal, you’re easily going to achieve your ROI.

Adopt InvoiceOwl To Get Paid Faster

Small business etiquette is helpful to help set your relationship with clients in the right way.

By adopting online invoicing software, you can efficiently save time and improve your business’s cash flow. InvoiceOwl is one such invoicing software solution that helps automate and simplify your business processes and communication with online invoicing and payments and even expense management.

Etiquette helps your clients trust their jobs with you and helps clients refer you to their colleagues in the same business.

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