Invoicing Basics for Small Businesses6 min readReading Time: 3 minutes
Financial independence is almost anybody’s dream without a doubt as we are creatures of comfort and would like the best we could afford. Although it is a common concept to be working on a payroll to get by, most of the time it does not simply mean a financial support abundant enough to provide a carefree, do-as-you-like kind of comfort for a lifetime. That is when most people decide on founding their own business and although it comes with its own challenges prior to inception, owning a small business means serious business. And one of the most serious aspects of it is keeping a healthy record of your transactions which is only attainable by implementing some robust invoicing.
How to Make Basic Invoice
To save yourself from a dreadful experience, there are several tips for you down below you might want to take note of to make sure you sail smoothly through those daunting waters:
A basic invoice template is supposed to be crystal-clear about what it is arranged for. For your clients to know exactly what they are paying that sum for, your invoices need to be detailed to the point where it includes all relevant information, but not being overwhelming meanwhile. So make sure your invoices lay out your contact information which are your registered business name, your own name, open address, phone number and other contact info you deem worthwhile. It should also be informative about the list of products or services you have provided in an easily legible fashion. Last but not the least, the due date and your accepted payment options need to be written down for a client-friendly invoice.
Basic Invoice Format
You are not doing business out of charity. Therefore asking for your payment not only in the amount but also in the timeframe you are expecting is a good practice so your customer knows when their payment is due.
Sticking with a standardized template that applies to all of your invoices is yet another important item on our tips list. Professionally designed invoices that stand out from the rest is part of building your brand – do not neglect it like a piece of boring wall of text, but rather an extension of the corporate identity you are looking to establish.
Just like arriving at your business on time promptly is important, so is getting the job done with your sale. And that is through delivering your invoices on time, no later than 48 hours so that the business is still “fresh out of the oven” reminding both parties of their responsibilities regarding the commercial relationship between.
Future of Invoicing
Face it – it is a digital age. Anything that could be digitalized will be digitized! Not for the sake of the latest trend but rather for the sake of better control, portability, accessibility and ease of use. Online invoices tick every box in that regard, simplifying one of the most arduous procedures of your business.
Do track your invoices. After having sent them, you would like to be informed of its latest status, when it was received, if it has been viewed, processed, waiting for payment – which phase, so you can plan the cash flow better. Online invoices allow you to do that. Use them.
You have been paid, now what? Well it is yet another great practice, a token of courtesy, to reply to the payments that have been fulfilled after your invoices with payment receipts. Not only do they help build your brand out, they also sew a strong connection between the parties increasing the likelihood of a returning customer.
It can actually be a pleasant part of your everyday job of your business, preparing those invoices as you could see. Simplifying and adhering to a few thumb rules will go a long way in that regard.