Not getting paid on time can be a tasking experience, especially if you run a small business. If you often find yourself running around on your toes trying to get your clients to pay you, you might be in a world of worries.
However, in order for the business to survive, there is a strong need to have a constant flow of money. Companies need to manage staff, production costs, debtors, and invoices to make sure that they are on the right track, but this process requires hefty expenditure too. This is why timely payments are the key to keep the business running smoothly.
Most companies have begun to understand the importance of invoicing and how it could help hasten your payments reaching you. Online invoicing has also gained heavy momentum, in and around companies in the UAE and the world because of its convenience and cost-effectiveness.
What Information to Include in an Invoice:
A clear and well-written invoice containing relevant and important details can cut back on payment delays. While you can use an invoice with brand in the free invoice templates industry, if you choose to do it yourself, here are a few things are a must to add while writing an invoice:
Headings: Since time is of the essence to any individual, most people will scroll through their emails without paying much attention. Title your invoice and add the heading as ‘(Company name) Invoice’ so that they can differentiate between your invoice and other receipts.
A Unique Invoice number: Having a serial number for your invoices makes it easier to track and make a record of your invoices. Make sure that you check for duplicates. If you make use of invoicing software, then that can take care of this aspect for you. If you’re having difficulty making one, there are quite a few places where you can create an invoice online.
Company Details: Make sure you add all company details like your name, address, e-mail id, and phone numbers along with the name of a contact person to reach you on every invoice. This way, there will be no discrepancies and if there is a mishap, your client will have multiple ways to contact you.
Date of the invoice: Date your invoice so that your clients are aware of when it was sent and by when they’d have to make the payment.
The product in question: Mention clearly what you’re charging your client for, be it a product or service. This way, they will be reminded of your service and make the payment earlier. Make it clear how much you’re charging for each product.
Supply date: Apart from adding the date of when you sent the invoice, mention clearly and separately the date of supply, that is the date when the product or service reached your client.
Order number: Every purchase or order has a unique number. Adding that onto your invoice will help your client connect your product or service to your invoice.
The total amount owed with tax: Make sure that apart from individual cost, you mention the total cost and also mention the tax separately. Your clients might skim through the contents of the invoice and might not appreciate having to calculate the amount themselves and thus put off paying you.
Deadline or Payment Terms: It is very crucial to add to your invoice, a clear date or duration for your client to send across their payment. Without a clear deadline, your client might forget or push paying you. You can offer an incentive for early payment or add a delay fine for fee deferrers as well.
Payment Method: Adding methods of payment may increase the chances of on-time payment. If your client knows what methods you accept and if you add a bank number (in case you accept bank transfers), the client might be more inclined to pay you as soon as possible.
Business logo: Adding a logo can help to reinstate your brands' image and remind your client who you are and what you provided them.
How Does Online Invoice Generator Work?
An online invoice generator can be your company’s best friend. There are pre-designed templates along with customizable templates offered. You simply have to fill in the templates with the necessary information. The best part of an online invoicing generator is that you’re required to fill in a Client’s details only once.
If you send that client more invoices, the online invoice generator will automatically fill in their information and all you have to do is add on the products and prices.
The invoice generator will also send the invoice to your clients, add on dates and also send reminders to them stating if the due date is approaching or if they have missed this date.
How to Send an Invoice?
Most companies send invoices via email today. However, we suggest you ditch the mails and upgrade to an invoicing tool. Sending e-mails is no more a viable option seeing how you've received the invoice, if they have made the payment or why there is a delay.
With an online invoicing tool, the tool automatically sends your clients the invoice, notifies you if they have received and checked the invoice and when they make the payment. In addition, it also sends your clients a reminder to make the payment and generates receipt upon successful receipt of payments.
A well-written invoice using templates and tools from an online invoicing generator can prove to be highly effective and can ensure more number of on-time payments. Additionally, you can make use of free billing software as that would save you and your company the hassle of personally running behind your money, making sure all the payments are being made on time.