How to Do an Invoice: 5 Key Tips for Creating a Professional Invoice

how to do an invoice professional invoicing service

If you offer a business service, you expect to be paid for it in a timely manner. In a perfect world, this is how business would operate, but it's not always the case. 

This is why a streamlined billing and invoicing system is paramount. And it's even more fundamental to businesses that operate as a sole proprietor.

After all, there's no one else to help you chase up on payments, and no one likes to beg for money! It becomes time consuming, exhausting, and even degrading at times when you want to focus on your main business at hand.

Whether you're new to the world of business services or just need a refresh, here's how to do an invoice and set up a billing & invoicing system the right way...

Get Paid What You're Owed: Top Tips on How to Do An Invoice  

If there's one thing that'll hold up your business growth, it's your available cash flow. Without it, you could run into a world of trouble including unwanted debt. 

Providing clear, concise, and professional invoices to your customers is critical to your cash flow. Here's how it's done: 

1. Use High-Quality Invoicing Software 

If you're still creating your invoices in Excel, it's time for a wake-up call. This is a hugely time-consuming task that can be simplified to suit your needs. 

Make sure your invoices are produced using high-end invoicing software which provides simple invoice templates for success. 

Invoicing software is created with accountant expertise and the best practices to follow. In fact, you don't even need an accountant to use these tools! 

2. Always Include Business Contact Information

It's imperative that you provide a clear way for your customers to get in touch with you should they pick up any discrepancies on an invoice. This makes for business transparency and a solid reputation in your industry. 

Make sure to include your official business name, phone number, postal address, physical address, and email address(es). 

3. Always Number and Date Your Invoices 

This is one of the most simple steps in invoice creation but is often overlooked. Make sure all your invoices are clearly numbered in a unique, sequential order.

Why is this relevant? So that you can keep track of each invoice that's been paid and sort through them easily when it comes to tax season. Basically, it just makes your life a whole lot easier. 

It's also important to supply the date that the invoice was prepared, as well as a payment due date so that your customers know when you expect to be paid.

4. Drive Home How You'd Like to Be Paid

Ensure you highlight the payment section of your invoice clearly and boldly so that your customers are well aware of how you'd like to be paid. 

Whether it's debit, credit, an online transfer or cash, make sure to specify this on each invoice. As mentioned above, don't forget to outline the payment terms of your business i.e. the 30, 45, or 60-day payment window.  

5. Itemize Your Services and Rates 

This is a great way to provide a little more detail in each invoice based on the exact services you provided to your client.

Itemizing each service with relevant rates gives your customer a clear idea of what they're paying for. It also shows them that you're being 100% honest about what you're charging for. And minimizes instances of discrepancies or queries about payments due to you.  

Overall, this helps to speed up the payment process, which is ultimately the end goal!  

Stay On-Top of Your Business Finances 

Now that you know how to do an invoice and maximize your cash flow, you can find business finance advice to maximize your success, here. 

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