Your heart sinks as you read this message. You quickly correct your invoice and resubmit it, only to realize it\u2019s Friday. Now, you\u2019ll have to wait until Monday to get paid.<\/p>\n\n\n\n
Though simple, invoicing can be a lengthy process, especially when working with multiple clients. Doing it wrongly can delay your payments and even hurt your professional reputation. <\/p>\n\n\n\n
In this article, we\u2019ll show you key invoice best practices to streamline your invoicing, reduce errors, and get timely payments. Let\u2019s dive in!<\/p>\n\n\n\n
6 Invoice Best Practices For Small Business Owners<\/h2>\n\n\n\n
Here are some invoice best practices that\u2019ll make your invoicing efficient:<\/p>\n\n\n\n
1. Establish Crystal Clear Communication<\/h3>\n\n\n\n
When you onboard a client, be upfront about these key details:<\/p>\n\n\n\n
- \n
- Your rates<\/li>\n\n\n\n
- Additional fees for extra services<\/li>\n\n\n\n
- Invoice frequency (monthly, after project completion, etc.)<\/li>\n\n\n\n
- Preferred payment method<\/li>\n\n\n\n
- Basic company details to include in your invoice<\/li>\n<\/ul>\n\n\n\n
If your clients process payments at a fixed time, such as the end of the month, they may be busy handling payments for other freelancers\/agencies too.<\/p>\n\n\n\n
Discussing these terms early on prevents last-minute questions that can delay payments. <\/p>\n\n\n\n
Plus, clients appreciate professionalism, and it\u2019ll be easier for them to pay you with minimal back-and-forth.<\/p>\n\n\n\n
\n\t\t\t\t\t\t\t\n\t\t\t\t\t \t\t\t\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t \t\t\t<\/a>\n\t\t\t\t\t \t\t<\/div>\n \t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\t7 Ways to Get Paid Faster by Your Clients<\/span><\/a>\n \t\t\t\t\t\t\t\tWhen you get paid faster by your clients, your business can manage your cash flow more effectively so you can meet your financial obligations<\/span>\n \t\t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\tREAD MORE<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\n\n2. Format Your Invoice Simply<\/h3>\n\n\n\n
When it comes to invoices, your clients care most about these few things:<\/p>\n\n\n\n
- \n
- The total amount you’re charging<\/li>\n\n\n\n
- Breakdown of individual services<\/li>\n\n\n\n
- Your banking information<\/li>\n\n\n\n
- Invoice date<\/li>\n<\/ul>\n\n\n\n
Your invoice should highlight these things so that the person reading it doesn\u2019t spend too much effort finding them.<\/p>\n\n\n\n
The invoice should be formatted simply for maximum readability. Here are some quick tips for that:<\/p>\n\n\n\n
- \n
- Use only one font throughout your invoice. We recommend using any variations of sans-serif<\/strong> fonts as they\u2019re proven to improve readability in business documents<\/li>\n<\/ul>\n\n\n\n
- \n
- Make \u2013 pricing, the invoice date, and banking details stand out in bold or italics.<\/li>\n<\/ul>\n\n\n\n
- \n
- If there\u2019s a table in your invoice, ensure it has enough space for people to read things clearly. Don\u2019t stack too many things in a column.<\/li>\n<\/ul>\n\n\n\n
- \n
- People normally read from left to right. Add key information such as your charges on the right side of the invoice.<\/li>\n<\/ul>\n\n\n\n
- \n
- Use easy words that are simple to read and understand. A good way to check if your words are simple is to read them out loud. If you find a word difficult to spell, replace that with something simpler. If you don\u2019t like to spell it out loud, use a free text to speech<\/a> site to listen instead.<\/li>\n<\/ul>\n\n\n\n
- \n
- Finally, don\u2019t overload your invoice with extra information like \u2013 company history or promotional messages.<\/li>\n<\/ul>\n\n\n\n
As a reference, here\u2019s an invoice you template<\/a> from InvoiceBerry with formatting that follows all the said guidelines:<\/p>\n\n\n\n
![\"invoice](\"https:\/\/i2.wp.com\/www.invoiceberry.com\/blog\/wp-content\/uploads\/2024\/11\/unnamed.png?resize=690%2C975&ssl=1\")
<\/figure>\n\n\n\n3. Send Invoices On Time<\/h3>\n\n\n\n
Money is a sensitive subject for any company. Sending accurate invoices on the promised time helps your clients manage things better.<\/p>\n\n\n\n
For instance, if your client processes all invoices mid-week, it\u2019s easier for them to handle everything at once. However, if you fail to submit your invoice as promised, it creates extra work for them to manage your payment separately.<\/p>\n\n\n\n
While this might seem like a minor issue, failing to meet invoice deadlines might affect the trust a client has in you. To get consistent future work, it\u2019s important to let a client know you\u2019re keeping your word.<\/p>\n\n\n\n
If you have a team, ensure they prepare their invoices ahead of time.<\/p>\n\n\n\n
4. Consider an Invoice Automation Software<\/h3>\n\n\n\n
Managing invoices can quickly become unbearable as your business grows and you get more clients.<\/p>\n\n\n\n
Imagine having 25+ clients and filling out their invoices every single time. Each client\u2019s changing payment deadlines and time zones will force you to manually track and create invoices on different days, consuming your valuable time and resources.<\/p>\n\n\n\n
Also, because of obvious human errors, your clients may end up with incorrect or misplaced invoices.<\/p>\n\n\n\n
To solve this issue, consider investing in the right invoice automation softwares<\/a>.<\/p>\n\n\n\n
Invoice automation<\/a> softwares such as InvoiceBerry let you automate most of the invoice creation process. You can also schedule invoices based on different client deadlines and track unpaid invoices on your dashboard.<\/p>\n\n\n\n
Along with this, invoice automation softwares let you:<\/p>\n\n\n\n
- \n
- Send recurring invoices for your regular clients<\/li>\n\n\n\n
- Create multilingual invoices for international clients<\/li>\n\n\n\n
- Convert your quotes to invoices<\/li>\n\n\n\n
- Customize client company logos in your invoices<\/li>\n\n\n\n
- Access multiple invoicing templates<\/li>\n<\/ul>\n\n\n\n
If you manage a handful of clients, manual invoicing might be manageable. But as your business grows, invoice automation will save your time indefinitely.<\/p>\n\n\n\n
\n\t\t\t\t\t\t\t\n\t\t\t\t\t \t\t\t\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t \t\t\t<\/a>\n\t\t\t\t\t \t\t<\/div>\n \t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\tHow to Monitor Billable Hours to Manage Project Costs<\/span><\/a>\n \t\t\t\t\t\t\t\tDiscover effective strategies for monitoring your billable hours. With effective time tracking, you can keep clients happy and improve your efficiency at work.<\/span>\n \t\t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\tREAD MORE<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\n\n5. Information Every Invoice Must Have<\/h3>\n\n\n\n
Regardless of your industry, certain key elements are essential for every invoice.<\/p>\n\n\n\n
For example, the keyword \u201cInvoice\u201d is mentioned prominently at the top of every invoice. That\u2019s because companies often file and organize their financial documents. Having “Invoice” on top makes it easier for them to categorize and find these documents later.<\/p>\n\n\n\n
Similarly, you must include information that follows invoice best practices, like:<\/p>\n\n\n\n
- \n
- Invoice number<\/li>\n\n\n\n
- Invoice issue and due date<\/li>\n\n\n\n
- Client company\u2019s address details<\/li>\n\n\n\n
- Your business\u2019s address details<\/li>\n\n\n\n
- Your rates <\/li>\n\n\n\n
- Client company\u2019s business name<\/li>\n\n\n\n
- Your business name<\/li>\n\n\n\n
- Client company\u2019s logo<\/li>\n\n\n\n
- Payment terms <\/li>\n<\/ol>\n\n\n\n
While basic, you\u2019d be amazed how often people forget to include such information. That\u2019s also one of the reasons templates or invoice automation helps as they automatically create or update this information according to each client.<\/p>\n\n\n\n
The last thing you want is to have your invoice sent back just because of silly errors.<\/p>\n\n\n\n
6. Keep Track of Late or Unpaid Invoices<\/h3>\n\n\n\n
According to a 2024 survey<\/a>, small business owners in Australia lose up to $12,000 to $30,000 annually due to late payments. <\/p>\n\n\n\n
All those little unpaid and late services you let go WILL add up, effectively turning your work into charity.<\/p>\n\n\n\n
Let\u2019s get this one thing clear: There\u2019s nothing morally wrong in asking about your unpaid dues. Most of the time, client companies simply misplace your invoice or forget to pay you due to their internal workloads.<\/p>\n\n\n\n
Hoping your clients will notice your unpaid dues and reach out to you personally is a fruitless expectation. <\/p>\n\n\n\n
To handle this, track your unpaid dues manually on Excel or use your invoice automation softwares. For example, here\u2019s the invoice dashboard from InvoiceBerry that tracks unpaid payments:<\/p>\n\n\n\n
![\"invoicing\"](\"https:\/\/i1.wp.com\/www.invoiceberry.com\/blog\/wp-content\/uploads\/2024\/11\/unnamed-1.png?fit=690%2C478&ssl=1\")
<\/figure>\n\n\n\nOnce done, remind your invoice dues to your clients politely and as soon as possible. And If you\u2019re looking for practical ways to improve your process, here\u2019s a guide on how to easily collect payments<\/a> to keep your cash flow running smoothly.<\/p>\n\n\n\n
6 Tips for Streamlining Invoicing in Professional Services<\/h2>\n\n\n\n
Along with these invoice best practices, here\u2019s some quick tips you can follow when creating an invoice:<\/p>\n\n\n\n
1. Notify Your Client After Submitting Your Invoice<\/h3>\n\n\n\n
This is especially important when working with a first-time client or when your invoice amount is huge.<\/p>\n\n\n\n
Clients may not always check their email or be available to view your invoice in their software. <\/p>\n\n\n\n
In such situations, personally contacting your clients through professional channels like \u2013 Slack, Discord, or other platforms (that respect their personal space) is a great way to ensure your invoice gets acknowledged.<\/p>\n\n\n\n
2. Always Cross-Check Your Banking Details<\/h3>\n\n\n\n
Getting paid is naturally the single purpose of your invoice. If your payment details are incorrect, clients (obviously) won\u2019t be able to pay you <\/p>\n\n\n\n
As a general rule, always cross-check your banking information right before sending out an invoice.<\/p>\n\n\n\n
If you\u2019ve recently changed your bank or payment mode, it\u2019s even more important to cross-check and report your clients about the same.<\/p>\n\n\n\n
\n\t\t\t\t\t\t\t\n\t\t\t\t\t \t\t\t\n\t\t\t\t\t \t\t\t\t<\/div>\n\t\t\t\t\t \t\t\t<\/a>\n\t\t\t\t\t \t\t<\/div>\n \t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\tThe Pros and Cons of Fixed-Rate vs. Hourly Billing for Remote Freelancers<\/span><\/a>\n \t\t\t\t\t\t\t\tPeople are presented with two options and as a remote freelancer, you must have wondered which was better: Fixed-Rate vs. Hourly Billing. <\/span>\n \t\t\t\t\t\t\t\t\n \t\t\t\t\t\t\t\tREAD MORE<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\n\n3. Set Clear Overcharging Expectations <\/h3>\n\n\n\n
Client requirements always keep changing. If times are good, you\u2019ll have more work than what was discussed. <\/p>\n\n\n\n
For example, if you provide content writing services, your clients might ask for extra blog sections, social media updates, or content revisions (beyond what was initially agreed upon).<\/p>\n\n\n\n
At first, these requests may seem minor, and you may gladly handle them without any extra charge. However, as the workload increases, these “small” tasks eat up your valuable time.<\/p>\n\n\n\n
Hence, you must communicate extra charges for your services right from the start. <\/p>\n\n\n\n
A good way to do that is to offer your services in bundles. Bundles show how additional charges will apply if the workload crosses expectations. For example, here\u2019s how you can break down content writing services into bundles:<\/p>\n\n\n\n
- \n
- Basic Package<\/strong>: 3 blog posts (up to 500 words), 1 revision per post, extra posts at $50 each<\/em>, revisions at $25.<\/li>\n<\/ul>\n\n\n\n
- \n
- Standard Package<\/strong>: 5 blog posts (up to 750 words), 2 revisions per post; extra posts at $45 each,<\/em> revisions at $20.<\/li>\n<\/ul>\n\n\n\n
- \n
- Premium Package<\/strong>: 8 blog posts (up to 1000 words), 3 revisions per post; extra posts at $40 each<\/em>, revisions at $15.<\/li>\n<\/ul>\n\n\n\n
Finally, clearly mention the extra charges in your invoices, either in a separate row or a marked section. <\/p>\n\n\n\n
This helps clients understand the costs clearly and ensures they don\u2019t end up feeling scammed.<\/p>\n\n\n\n
4. Document & Backup Your Invoices<\/h3>\n\n\n\n
You must create a backup of your invoice before submitting it. This can help you in many ways, including:<\/p>\n\n\n\n
- \n
- Avoid legal troubles in the future<\/li>\n\n\n\n
- Help manage and track your finances<\/li>\n\n\n\n
- Calculate your taxes <\/a><\/li>\n\n\n\n
- Create a history of client transactions<\/li>\n<\/ul>\n\n\n\n
5. Choose the Correct Invoice Type<\/h3>\n\n\n\n
If your business offers multiple services such as \u2014 content writing, video editing, graphic design, and web development, it\u2019s wise to use different invoice types for each service.<\/p>\n\n\n\n
For example, the invoice for content writing may focus on word count and revisions.<\/p>\n\n\n\n
Similarly, a video editing invoice may highlight hours worked and specific edits requested.<\/p>\n\n\n\n
- Create a history of client transactions<\/li>\n<\/ul>\n\n\n\n
- Premium Package<\/strong>: 8 blog posts (up to 1000 words), 3 revisions per post; extra posts at $40 each<\/em>, revisions at $15.<\/li>\n<\/ul>\n\n\n\n
- Standard Package<\/strong>: 5 blog posts (up to 750 words), 2 revisions per post; extra posts at $45 each,<\/em> revisions at $20.<\/li>\n<\/ul>\n\n\n\n
- Basic Package<\/strong>: 3 blog posts (up to 500 words), 1 revision per post, extra posts at $50 each<\/em>, revisions at $25.<\/li>\n<\/ul>\n\n\n\n
- Finally, don\u2019t overload your invoice with extra information like \u2013 company history or promotional messages.<\/li>\n<\/ul>\n\n\n\n
- Use easy words that are simple to read and understand. A good way to check if your words are simple is to read them out loud. If you find a word difficult to spell, replace that with something simpler. If you don\u2019t like to spell it out loud, use a free text to speech<\/a> site to listen instead.<\/li>\n<\/ul>\n\n\n\n
- People normally read from left to right. Add key information such as your charges on the right side of the invoice.<\/li>\n<\/ul>\n\n\n\n
- If there\u2019s a table in your invoice, ensure it has enough space for people to read things clearly. Don\u2019t stack too many things in a column.<\/li>\n<\/ul>\n\n\n\n
- Make \u2013 pricing, the invoice date, and banking details stand out in bold or italics.<\/li>\n<\/ul>\n\n\n\n
- Use only one font throughout your invoice. We recommend using any variations of sans-serif<\/strong> fonts as they\u2019re proven to improve readability in business documents<\/li>\n<\/ul>\n\n\n\n
![\"invoice](\"https:\/\/i2.wp.com\/www.invoiceberry.com\/blog\/wp-content\/uploads\/2024\/11\/unnamed-2.png?fit=690%2C976&ssl=1\")
<\/figure>\n\n\n\n![\"\"](\"https:\/\/i1.wp.com\/www.invoiceberry.com\/blog\/wp-content\/uploads\/2024\/11\/7ca8f64c804f21c6799c327e935bad0e.png?resize=128%2C128&ssl=1\")
<\/figure>