Mountain Top Bookkeeping
Invoicing Best Practices for Small Businesses to Follow
If you are a small business owner, then you know how important it is to get every aspect of your business right, especially your invoicing process. Invoicing is a stressful yet inevitable part of running a business. An invoice usually follows most business transactions you have. If your clients are late in making payments, that can disrupt your company’s cash flow and make it difficult to settle your accounts payable on time. Here are some of the best invoicing practices your small business can follow to make the process more efficient.
Make It Straightforward and Simple
Now that you’ve put in all the work and delivered the product or service to the client, it's time to get paid. How you invoice can make all the difference between getting paid quickly or getting paid slowly, or even not getting paid at all. It is best to keep invoices simple and straightforward.
Make sure your contact information is correct and up to date. Include your name, business name, address, phone number, and email address. This may seem like a no-brainer, but you would be surprised how often contact information is incorrect or outdated.
Include All the Important Information
Be clear about what the invoice is for. Include the date of the service, a brief description of the service provided, and the total amount due. Again, this may seem like a no-brainer, but being clear and concise will help avoid any miscommunication between your organization and the client.
The invoice should contain all relevant details that the client may need in order to make the payment. This could include information on where to send the payment, what form of payment is preferred, and the due date.
Make Sure the Invoice Is Visually Appealing
Use a simple design and layout, and avoid using too much text or too many colors. You want the invoice to be easy to read and understand.
The best invoicing practices include providing all of the important information that the customer needs to know. This includes the date of the invoice, the customer's name and address, a description of the goods or services being billed, the quantity of goods or services being billed, the unit price of the goods or services, the total amount due, and the payment terms.
Adding all of this information to the invoice will help ensure that the customer knows exactly what they are being billed for and can make the payment in a timely manner. Additionally, it is essential to include your contact information on the invoice in case the customer has any questions.
Don’t Wait too Long to Send Invoices
When it comes to best practices for issuing invoices to customers, there are a few key things to keep in mind. First, offer multiple payment options—many customers appreciate the flexibility of being able to choose how they pay their invoices (credit card, PayPal, bank transfer, and more). Also, remember to send the invoice as soon as you’ve delivered the goods or services or immediately after the project has been completed—the sooner you send it, the earlier you’ll get paid.
As your business grows, it can get complicated to keep track of your invoices. However, with the help of Mountain Top Bookkeeping, you can rest assured that best practices are being followed and that your invoices are being handled efficiently. Get in touch with us now to learn more about our services.