6 Invoicing Best Practices For Small Businesses To Follow

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What’s more challenging for small business owners rather than completing your job? – Getting an invoice paid on time. Many of you may even struggle to send invoices to clients on time.

Of course, without a stable cash flow, it’s challenging to pay your bills on time and keep your business in operation. Are you wondering how to optimize the invoicing process and how to expect payment faster from your clients?

Well, it is made possible by learning, understanding, and following the invoicing best practices to create invoices in a timely manner. Alright, let’s check out them.

Invoicing Best Practices to Follow

Below are the 6 simple invoicing tips that will help you maintain a smooth cash flow.

  1. Generate Easy-to-understand Invoice

    The first thing that you need to do is to keep your invoice simple and preferably a short one. Your invoice must be easy for the clients to check what they are paying for and easily navigate to making the payment in no time.

    Many times, it happens that customers find it challenging to make payments because there is no specific payment option included in the invoice. So, you need to include preferred payment options in the invoice to make it easy for clients to pay promptly.

    To get paid faster, include the information in your invoice that easily speeds up the payment process. Make sure you have mentioned the below details properly in the invoice.

    • Invoice Due Date
    • Invoice Reference Number
    • Buyer’s name and contact details
    • Billing address
    • Preferred Payment Option
  2. Elaborate Payment Terms And Condition

    While generating an invoice, you must consider the client’s expectations and budget. Therefore, mention clearly the due date, payment cycle, and instructions. It should be 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, conditions, methods of payment.

    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. Send Invoice Quickly And Enable Read Receipts

    One of the most common modes of communication that many companies use is email. So, send invoices immediately to your customers to get invoices paid faster.

    Invoicing software like InvoiceOwl supports “Read receipts” functionality. It informs you of the email being received and read by your client. With the help of this feature, you’re assured that an email has successfully reached the right person.

    You can either send your invoices using a direct link mentioned in your invoice. Or else, you also have an option to send the invoice using Word, Excel, and even PDF documents.

  4. Develop A Robust Policy

    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 including it in a contract.

    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. The automated software will guide you to create an invoice from scratch. Remember that you must include your business name, logo, address, phone number, and email in the contract. This way, your customers know exactly how to get in touch with you if they need to.

  5. Follow Up Overdue Payments

    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 amount. 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.

  6. Adopt Invoicing Software For Your Business

    When it comes to best invoicing practices, business owners should make use of accounting software. By adopting online invoicing software, you generate invoices in a timely manner 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.

    Hence, you will have fewer billing errors while making an invoice. Moreover, your clients will prioritize your service and they will refer you to their colleagues in the same business.

Frequently Asked Questions
  1. What can go wrong while making an invoice?

    Here are the things which may get you in trouble during invoice processing.

    • Misplacing Invoices
    • Confusing invoices
    • Data missing
    • Missing or incorrect contact information
    • Incorrect pricing
    • Inaccurate math
    • Missing payment due dates and other oversights

  2. Are there any templates available to create an invoice?

    Yes. The templates are time savers as they are available in Word, Excel, and even PDF formats. With the help of templates, you don’t have to repopulate the same information whenever you create an invoice. Download InvoiceOwl App to create free online invoice templates that make it easy for you to create invoices quickly.


  3. How can the invoice process be improved?

    The invoice or billing process can easily be improved if you follow the steps mentioned below.

    • Establish clear payment terms upfront.
    • Make your invoices look impressive.
    • Provide relevant information.
    • Invoice your clients as quickly as possible.
    • Take regular follow up with your clients.
    • Utilize digital tools.

Conclusion

Small business invoicing is key to improving cash flow and reducing your overall stress. To summarize, your invoice must be simple and easy to understand along with the correct financial information. We recommend you send your invoices quickly as soon as your project is ready.

Moving on, you may make your invoice process smoother if you use an online invoice software like InvoiceOwl. It offers free invoice templates that make it easy for you to create invoices by just adding essential information.

Isn’t it exciting? and get paid faster.

Try Our Free Online Invoice Generator Today!

Whether your business is in construction, landscaping, consulting, photography, auto repair, or the medical field, invoicing takes way too long. That’s why we’re here. InvoiceOwl makes your invoicing faster and simpler so you can get paid promptly and without the hassle.

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.

United States

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