As an entrepreneur, you’ll surely come into contact with invoices sooner rather than later. And, while invoicing might seem easy on the surface, it isn’t as simple as you might think. It’s important to ensure that invoices are generated properly in order to obtain those all-important funds.
So, let us provide you with a few basic tips to help you get started:
1. The Basics.
Whenever you’re receiving a payment from another client, you’ll need to invoice them. To do this, the best way to start is by downloading a free template from the web. This will help you to remember to include important information that you mustn’t forget. Talking of important information, you must make sure you include things like names, addresses and prices. The sheer basics must be in there if you hope to get paid on time.
2. Important Details.
Once you’ve got the basics out of the way, it’s time to go into detail. This is where you must include in-depth information such as the work carried out, your payment details and more. You’ll also need to take things like VAT into account if necessary. Don’t forget to include an invoice number — you can generate this yourself. We’ll talk about this in more detail in the next section.
3. The Numbering System.
Your invoice number is something that you can create on your own. However, it will need to be unique to each invoice. Eventually, you’ll end up with hundreds of invoices, and it can get a bit disorganised if you’re not careful. This is why using a numbering system is key. Normally, you’ll include a few letters (maybe of the company’s name?) followed by 001. Then, in future invoices, you can go up to 002, 003 and so on. This should keep your invoices in a tidy order as you generate more in the future.
4.. Making It Easy For Yourself.
If you’re going to be generating a lot of invoices on a regular basis, you can find ways to make it easier for yourself. For example, a small business app can generate instant invoices with just a few basic details. Alternatively, you can get PC software to do a similar job. If you’re sticking with the original template, make sure it’s kept up to date if any changes are made.
Another thing you can do with invoices is put deadlines on them. This means that the payment must be made within a certain timeframe. It’s important to be very specific when doing this to avoid any confusion. Also, make sure you’re keeping a track of any invoices you have sent. It isn’t always easy to remember whether you’ve been paid or not, so this is crucial. You don’t want to lose out on money because of poor organisational skills!
Those are the sheer basics that you need to know about invoicing. Like anything, by taking the time to research it further, you’ll understand more about them. It won’t be long until you’re generating invoices without even needing to think about it.