Invoices are not just transaction records; they also speak about your brand. When you personalize invoices, you value customer experience and avoid sounding generic. However, as a small business owner, sending personalized invoices can feel challenging.

According to Barclays, 58% of businesses deal with late payments, and personalized invoices play a significant role in this statistic. Why? Because impersonal invoices show that the client is not just another transaction for you rather it’s a valued partnership.

This article will walk you through the best practices for personalizing invoices to reinforce timely payments and strengthen client relationships.

What are Personalized Invoices?

Personalized invoices are a business tool that encourages tailored financial communication with clients, showcasing the brand’s personality and value for its customers. Unlike a generic invoice that only mentions the ‘amount due’, a personalized invoice includes a lot more.

Information like the client’s business needs, preferences, and a customized message based on their tenure, either a first-time buyer or a repeat customer is included in a personalized invoice. Moreover, a customized invoice gives multiple payment options to the client for choosing their preferred mode of payment.

In a survey of 300 CFOs, 36% of finance executives preferred customized invoices for an automated accounts receivable (AR) solution. This shows that a detailed approach creates a professional and consistent impression of your business, resulting in client satisfaction.

It’s a fact that personalized invoices speak a lot about your brand, but the question is ‘HOW?’.

Keeping aside the ‘amount due’, there are various elements to include in an invoice. These elements make your business stand out and keep you ahead of the payment curve.

Key Elements of a Personalized Invoice

The elements that make an invoice personalized are:

1. Branding & Design

• Use your brand’s logo, font style, and colors like you use in marketing.
• Place the brand’s logo at the top of the invoice for brand recognition.
• Make the format of the invoice easy to follow.

2. Typography

• Use a font style that is presentable and easy to read.
• Ensure sufficient spacing, font size, and line length.

3. Client Information

• Crosscheck and mention the necessary details of the client. This includes the company’s name, billing address, and contact information.
• You can also address the client with their first name if they are a repeat customer. This adds a personal touch.

4. Brand Messaging

• The tone of every description reflects your brand’s personality.
• Avoid technical jargon and choose a language that leaves a positive impact on the customer.

Pro tip: Write a personalized message to appreciate the relationship established with the client. These messages are client-specific which makes them feel valued and recognized.

5. Details of Services Provided

• Give a detailed description of the services your company delivered. This keeps the billing process transparent and professional.
• Customers love to know what they are being charged for.

6. Payment Methods

• Mention all the accepted payment methods to give customers the freedom to choose their preferred mode of payment.
• The invoice must clearly display the total amount due, including taxes and additional fees.

The above-discussed factors play a significant role in customizing invoices for customers. A well-designed invoice makes a long-lasting impression, which enhances credibility and customer loyalty.

Best Practices for Sending Personalized Invoices

We have already discussed what personalized invoices are and their key aspects. Now, let’s explore the best practices for customizing invoices for clients.

1. Personalize for Each Client

Using the same invoice template for every client will make your approach generic over time. You must personalize invoices based on the client’s business details, geographic factors, and additional information. Including their company’s logo alongside yours is also a special way of creating a sense of partnership. 

In addition to this, clients often overlook emails because they receive a high volume every day. To get your invoice noticed, place the client’s name in the subject line. Seeing their name first makes the email look more personal and increases the chances of it being opened.

2. Use Professional Branding

As mentioned previously, the invoice must contain your brand’s logo, font style, and colors. The most important aspect is consistency with the color schemes.

Business owners often overlook the importance of a color palette, but in reality, a brand is judged based on its logo and colors. Consistency in colors solidifies the appearance of your brand’s invoice.

You can also employ a “Pay Now” button in the digital invoice to make the invoice interactive and encourage the client to take immediate action. Also, highlight important details like due dates, payment terms, contact information, and discounts if any.

3. Prioritize Client Preferences

As highlighted earlier, a substantial number of businesses face late payments even after sending the invoice. The problem contributing here is not prioritizing client preferences.

Identifying what matters most to your client assists you in customizing invoices. Invoices with clear itemized lists, detailed descriptions, and multiple payment options value client preferences.

A well-crafted invoice promotes a transparent billing process and encourages the client to make timely payments.

Regularly check in to monitor client preferences and modify invoices accordingly. When clients feel prioritized, they pay on time and continue doing business with you.

4. Sending Invoices Promptly

When you send invoices on time, you respect your client’s schedule and payment cycle. Receiving a prompt invoice that contains up-to-date transaction details, helps the client to keep their financial records updated.

While the details of your services are fresh in the client’s mind, they tend to pay you on time. This increases the possibility of a positive experience on both ends.

Also, sending invoices just after completing a service makes customers believe they are doing business with a professional and organized company. This leads to faster payment cycles reducing the risk of disrupted cash flow as clients prioritize timely invoices.

5. Follow-ups on Outstanding Invoices

Follow-ups are a sign of proactive communication that strengthens client relationships. Doing follow-ups is a bit tricky because you cannot be rude to customers. Picking up a polite tone for giving a friendly reminder is the correct approach.

In the follow-up mail, you can ask the client if they are facing any issues with the payment procedure. For a more strategic approach, include essential details like invoice number, original due date, and any payment instructions if required. 

Use the following template as a reference:

Subject: Follow-Up on Unpaid Invoice [Invoice Number]

Dear [Client’s Name],

I hope this message finds you well. I wanted to follow up regarding the outstanding invoice [Invoice Number] dated [Invoice Date] for the amount of [Invoice Amount], which is currently overdue.

We understand that sometimes circumstances can lead to delays in payments, and we are committed to providing you with exceptional service. If there are any issues related to this invoice, please don’t hesitate to let us know.

Please review the invoice details, and if there are no discrepancies, we kindly request that you make the payment at your earliest convenience.

Here are the payment details:

Invoice Number: [Invoice Number]
Invoice Amount: [Invoice Amount]
Due Date: [Due Date]
Payment Methods: [Payment Methods, e.g., bank transfer, PayPal, credit card]

Sincerely,

[Your Name]
[Your Title]
[Your Company Name]
[Your Contact Information]

Create a timeline for follow-ups to ensure effective communication with the customer. The initial follow-up should be a week prior to the due date, the second follow-up on the due date, and the third follow-up a week later. Finalize it according to your convenience.

6. Automating Invoices

With so much on your plate, customizing invoices for clients may seem time-consuming. An invoicing software can be your companion in personalizing invoices and sending them on time.

64% of business owners say that automating invoice processes has improved their business and cash flow. This is because invoice software sends automated reminders to notify clients about any upcoming or overdue payments. 

It also helps you to schedule recurring invoices and streamline the invoicing process. Use ready-made reminder templates for each client and edit them as needed to send customized messages to your customers.

Mistakes to Avoid While Creating Personalized Invoices

There is a high chance of committing mistakes while personalizing invoices for the first time.

But don’t worry, it’s not that hard.

Mentioned below are some common mistakes small business owners make while customizing invoices for their clients. Let’s dive in and save you from doing the same.

1. Overcomplicating design & layout

Owners often add too many design elements and colors in the name of personalized invoices. Rather than overcomplicating, keep it professional and make the invoice visually appealing by highlighting necessary details.

Steer clear of generic, poorly designed invoice templates that don’t provide consistent branding design. Even if you utilize a template, look for one that captures the personality of your brand and has a professional design.

2. Incorrect information

It’s quite possible to mention incorrect information in invoices when created manually or through poorly integrated software. Always cross-check the necessary details in the invoice to reduce the risk of errors.

Even a single error in the spelling or invoice number can lower your whole brand reputation. So, maintain a checklist to confirm the right invoice number, client’s name, contact details, address, and itemized list of products and services.

3. Missing details

Avoid sending incomplete invoices to your clients. Missing even a small detail can lead to confusion, disputes, and delayed payments.

Be precise with the payment terms and other information such as business name, phone number, physical location, client name, invoice number, payment date, tax payable information, list of goods/services, extra fees, and due date for payment.

Also, ensure to include a personalized message at the end.

Final Thoughts

Personalization has always been an integral part in building good customer relationships. Regardless of how many customers you have, knowing and prioritizing their preferences is important.

You can personalize invoices by prioritizing client preferences and politely following up on outstanding payments. These small changes play a significant role in enhancing cash flow, client relationships, and overall business efficiency.

Now, it’s time for you to take control of the invoicing process and elevate your business. Start by exploring Invoiceberry to send personalized invoices and foster a strong client relationship.