How to Write An Invoice Letter for Small Businesses?

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Small businesses need to be paid as soon as possible to maintain cash flow within the business. Entrepreneurs suggest transparency about costs and payment schedules right from the beginning of the transaction. Excellent communication gives you a vivid idea of what the client wants and gets you paid faster. An excellent way is to include a winning invoice letter with your electronic invoicing.

A proper invoice letter gives you the edge with a professional and yet, friendly tone that shows when payment is due and who to talk to when they have any questions.

An invoice letter should be in the same format as a standard business letter. In this guide, we will show you the different steps involved in writing one.

What is an Invoice Letter?

An invoice letter is a kind of business and financial letter that is sent along with the invoice. The invoice letter includes payment details. It is a medium of asking the recipient to complete the necessary transaction within the given time.

Several companies sent the invoice letter and emailed clients under numerous conditions. The invoice letter should be professional and well-drafted.

Sample of Invoice Letter

This is how to write an email and attach the invoice templates to it. Emails are, most of the time, less formal than professional business communications letters which you can choose through the browser. Nevertheless, they should also be well-written and professional.

OR

Ways to Write an Effective Invoice Letter

    1. Get a Template

      A blank document or template is the easiest and most effective way to write an invoice letter. You can find plenty of business templates for invoice letters online.

      All you have to do is open your preferred word processing software and create a new blank document or open your template to continue.

    2. Insert Your Address

      Any business is incomplete without its address; a company’s address also reflects its identity.

      If your company doesn’t have a letterhead, write your business name, your full contact information at the left top corner of the letter, here is the format you will require.

      • Standard address format:
      • Name
      • Company
      • Street Address
      • City  Zip Code

For example:

      • Justin Beaver
      • Hollywood Groomers
      • 64 Allen Avenue Road Ste 400
      • Beverly Hills NY 90201

Note

There is no space for punctuation between every number or word, except for the parts with two spaces between the zip code and the state.

You can follow your city or state guidelines to make a good impact on your business

  1. Add the Date

    Like address, it is important to add a date in your invoice letter. You can add the date on which the invoice was written, the completion date, and the date it was completed.

    For instance, if we use the American date format which is; month, day, year, April 1, 2020, will be your date.

    Add the date on a line below the address. If your address is tilted to the left, the date should be on the left side of the letter. If you’re using a letterhead, put the date at the center, according to the Purdue University Online Writing Lab.

  2. Include the Recipient Address

    Add the address of the recipient below the date and include the customers’ name, company logo, title, and mail details. Don’t forget to include the zip code, state, city, and accurate mail details. It should be a line below the date and is always left justified.

    It is also very advisable to include a specific name at this point. Most entrepreneurs suggest that you always double-check the receiver’s postal details of your invoice templates. This is especially very important in large companies where you might have to send sales invoices straight to the accounting department or a third party that primarily handles part payments or transactions.

    Talk to your customers about the terms and conditions of the payment details, who to copy on the sales invoice, and, most importantly, the person that the invoice letter templates will be addressed to. It is advised to add accurate postal details of the sales invoice cover letter so that it directly reaches the particular person making the payments.

    You might also start to wonder about the best type of title to use when adding contact details. You can use standard personal titles like Dr., Mrs., Ms., or Mr.

    You can use Ms., Mrs, or Miss, for women. If you are not certain, use Ms.

  3. Add a Salutation

    The next step is to open the letters. Use the same personal title used in the recipients’ communications. You can add a salutation under the recipients’ address for your sales invoice.

    If you’re well acquainted with the recipients, you can use their first name alone. If you’re not, add their last name and personal title. Include a colon at the end.

    For example:

    Dear Chloe:

    Dear Ms. Brown:

    If you’re not sure of the recipient’s gender, you can use their full initial instead, such as;

    Dear Chloe Brown:

  4. Write the Body of the Letter

    Left justify your paragraphs and single space your letters. You don’t have to include the first-line indent. You can choose to add a blank space within every paragraph. When it comes to content, your writing should be as concise and transparent as possible about the short description of products or services. The first thing is to include a friendly opening, for example, I hope you’re good.

    Then move straight to the point:

    • Please find attached the invoice number for [project name].
    • Your order for services or products has been shipped. An invoice template has been attached for these items.
    • Please find attached an invoice for provided e-commerce services which is [due amount]

    You can now add some payments’ details or payment terms like:

    • This is a reminder of my payment terms: Your payment is due on January 20, 2020. You’ll get a 10% discount if you submit payment within 15 days, thank you.
    • Payment can be sent via direct deposit or check
    • A late fee of 5 percent is incurred every week
    • If you have any questions about the invoice or bill, please contact us at [the contact details].

    If you need to talk about projects:

    • I’ll be available next week if you have any further concerns or inquiries.
    • If you want to talk about projects
    • I’ll arrive in the office next week if you have any inquiries

    Add a friendly line:

    • It’s been an honor working with your business
    • I look forward to working with you in the future
    • If you need anything, just call me
    • How can we help you again in any way?
    • Thank you for your business

    And finally:

    • Confirm that the invoice or bill has been received.
  5. Write the Closing

    The closing should be a line after the last line of the letter template. The first word must be capitalized, and a comma should be added to the end. If you’re adding a signature in the letter template, put a blank line between your company name and then sign off.

    For example:

    Thank you,

    Michael Jackson

  6. Mention Attachments

    Attachments are also known as enclosures in this case. Enclosures should be written four lines below the closing. You can either add various attachments from the platform or list them by contact name.

    For example:

    • Enclosures: 3
    • Enclosures: 3D Model, Preliminary Drawings, Invoice 001

    Your invoice letter format is almost ready to go. Before you send it, make sure you have proofread it thoroughly for grammar and spelling mistakes.

    If you don’t want to remember everything, use InvoiceOwl’s free invoice generator. It sends your invoice with an auto-generated personalized invoice letter every time.

Timing and Conditions for Sending Invoice Letter

Sending an invoice letter is not enough, the timing and condition of sending an invoice letter also matter. Sending invoice letters for irrelevant reasons will spoil your company’s image and relationship with clients.

Here are the following reasons for sending the invoice letter for payment are:

  1. Advance Payment

    One of the reasons an invoice letter is being sent when the business owner is asking for advance payment along with the invoice. Businesses use invoice letter templates to ask customers to make prior payments.

    Companies choose to minimize financial risk like when the amount ordered is huge and business owners don’t want to take on higher risk.

  2. Due Payment

    Another reason for sending an invoice letter template is when the payment is due. A well-draft invoice letter is sent to the customers who have delayed payment or refuse to pay after work is done.

    It is appropriate and legal to send overdue payments invoice letters.

  3. On Purchase

    You can send a business letter template to the customer right after immediate purchase. The company can send an invoice letter along with the purchase bill. It is the common timing for sending a letter for bill payment.

    It will also keep a clear communication among customers and businesses.

  4. During the Project

    You can send business invoice letter templates and invoice emails to the customers between the projects. Usually, companies send invoice letters when the contracts of long-term and fixed periods of payment time are determined.

Things to Be Consider While Writing an Effective Invoice Letter

  • Avoid jargon. Depict clarity on your invoice. Show respect for clients’ professionalism.
  • Don’t forget the aim of your letter: to get paid.
  • Make sure you add the purpose of the invoice and don’t forget to include the due date in the first paragraph of the letter’s body.
  • Don’t forget to include the contact information in your word too, so the client will easily sort out any concerns about the invoice letter templates as soon as possible.
  • The paragraph of the body should be focused on a single point.
  • You must proofread your work or ask your colleague to do that for you.

How to Avoid Late Payments

Managing payments in the business is the biggest challenge every business owner faces often. In certain situations, businesses have to tackle late payments; in such situations, they want the money back and do not want to spoil their relationship.

Yes, we agree that it is a big task, but that’s the reason we have come up with solutions. Here are the ways how to avoid late payments:

    • Clear CommunicationLike it has been said, ‘clear communication is the key’. You can send a payment details letter as confirmation regarding payment terms. It is possible when there is mutual understanding and consent between both parties.

      Also, it will be considered as evidence later if one party changes their payment amount. Therefore, clear communication will help you to avoid late payments.

    • Being AssertiveYou need to take responsibility for transactions and invoice letters. Even after sending an invoice letter, you need to send direct and follow-up emails reminding them about their payments. By taking this action, you will be clear about payment terms in the beginning.

      Moreover, you do not chase payment at the last moment. Being in touch with your clients will help you to have transparent payment terms.

InvoiceOwl

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Author Bio
Jeel Patel
Jeel Patel
Founder

Jeel Patel is the Founder of InvoiceOwl and is the main curator & writer of the content found on this site. With ideals of quality, commitment, and perseverance, he believes in creating lasting business relationships with the clients.

India

Durg

IN