It is very important to provide innovative goods and solutions for better business growth and expansion. On the other hand, as a business owner, one has to ensure that the client payments are being made on time. Online invoicing helps in sending out invoices on time, and getting quicker payments.
Here are 10 essentials of an invoice, that every business owner must be aware of:
Payment date or due date is an essential for every invoice. This helps the client, to know when to pay up. A quick glance on the invoice is helpful to know that it might be getting due, soon. A reasonable credit period of 7 days to 30 days can be provided to the client, depending on industry standards.
Brand Logo and Identity
Building a relationship with the clients is very important for every business. Customizing the invoice template and adding brand colors and logo to it, helps in strengthening the brand message for the business. This is helpful in improving the revenue of the business from the existing clients.
Invoice Serial Number
Managing of invoices, is as important as sending them out to clients. This includes, resolving of client queries related to a particular invoice. Using the invoice number to depict the date and month it was sent out in, is very helpful. Periodic invoice reports help in analysing past sales and forecasting future product offtake. An invoice serial number is a must for every invoice.
Adding Invoice Notes
Sending out additional information is simplified with the help of invoice notes. This feature can be used for sending out offers to clients. Adding important messages related to the particular invoice or the services, can be very helpful indeed.
Adding your contact information on the invoice is a must. A customer can quickly call back or write an email confirming about the receipt of the invoice. The contact details are also important for repeat orders and query resolution.
Clear Product Description
Adding a product description on the invoice is an essential too. Every invoice has multiple goods/services being sold. These must be clearly described in the invoice document, so as to avoid any sort of dispute or confusion, later on. The prices, taxes and discounts must be added correctly and clearly.
Adding A Late Fee
Getting paid on time is a must for every business. Cash is the lifeline of every business. One has to put in consistent efforts to ensure clients are making timely payments. A late fee on the invoice, is a constant reminder, for the client to pay on time.
Sending out an estimate and getting it duly approved by the client is a must before sending an invoice. An estimate helps in getting an approval on the transaction and taking it further. An estimate reference number on the invoice helps in tracking the transaction easily.
The second most important document after an estimate, is the purchase order. Once an estimate is approved, the client sends out a purchase order as a final approval of the purchase. This is another legal proof of the transaction and its reference number is mentioned on the invoice, as well. A business owner must insist on purchase orders before sending out the final invoice.
Sending out work reports is an important aspect of every invoice. Work reports help the client in understanding the tasks completed and the goals achieved. These can be supplemented with timesheets to build client confidence and trust.
An invoicing and payments process must be taken seriously by every business. It not just helps in getting payments but also maintaining better client relationships.