Our Client Management guru Hannah Richards discusses invoicing in her latest blog.
It may sound easy and something you don’t feel you need any help with but your invoice says a lot more about you than you think!
Everything email you send, every letter you write tells the receiver about your ability to manage yourself and therefor your life. We all communicate depending on the level of stress we are under and if you are really busy, your emails probably don’t start with….Dear Graeme, thank you kindly for your email, ….. but rather a short, sharp answer to the question in hand with all accessory questions ignored. Sound familiar? We take this into account periodically but if the later style of communication is dominant you had better re think your communication skills.
Invoices are no exception. There is a protocol and etiquette to efficient invoicing. I find invoicing rather sexy! You are about to get paid for the work that you love, to spend however you want!
If figures get you going then you probably look forward to the last day of the month when you fire off your neatly organized, perfectly formed invoice so that the receiver can pay it immediately and that’s the key. If you send an invoice that looks the part then it gets paid on receipt. Here is what an employee is looking for!
Guidelines for writing an invoice:
1. A separate invoice document – Sounds obvious but I have received invoices in the body of emails, with only a fee and an account number!
2. Display your company name at the top centre of the page. If working as an independent contractor without a formal company, use your legal name.
3. Invoice reference and number
This is vital for the ease of payments. There needs to be a different number for each invoice.ie MTS001. If there is no reference then the invoice cannot be paid.
4. Type your company address below the name. This is essential if the payment will be mailed to you via the postal service. Even if you receive payment through another means, however, you should still include this basic contact information.
5. Include your telephone number. If working through a company, make it the company phone number. If working independently, include whichever phone number you use for business purposes.
6. Leave an email address. This is especially essential if getting paid via PayPal or any other means that relies on a valid email address. Use whatever address is linked to your payment account. If payment is not reliant upon email, include your company email address or the email address of your company’s accounting department.
7. List the due date. This date will vary depending on the agreement you have with your client, but most due dates are approximately 30 days after the invoice date. Make sure you specify that this is the due date.
8. Include your client’s details in the upper left hand corner, below your company’s contact information and across from you invoice number and dates. List the name of the company or individual whom you provided services to. Below the name, include the client company’s address, phone number, and email address.
It is worth keeping a record of your invoices in a folder on your computer and to have that folder backed up. It is also worth having any other documentation related to the contract or terms and conditions of the financial arrangement in that folder too. The more organized you are the more efficient you are! It may feel a bit old school but a printed version is always a good back up.
Choose the right software to help you prepare invoices. Basic spread sheet or word processing software is all you really need, but you may also opt for specialised invoicing software if you want to streamline the process. Most invoicing software includes templates to help you structure your document properly, and many come with features designed to keep your invoices organized. Xero is a good tool for your book keeping and accounting needs.
Hope that helps for all your invoicing needs. Remember you want to get paid so make it as easy as possible for the person paying you!
