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SMALL BUSINESS GUIDE: Create an accurate invoice

How you create your invoices and what kind of content they have on them, can say a lot about you as a professional. That is why when drafting your invoices you need to think about the accurate content you put it, the design and the professional attitude behind them.

Here are our tips on what you need to have in mind when you construct your invoices:

Leave the best impression – with your invoices you send a message about your business. So when your clients receive that invoice can which more information about what you do. So if it’s not-well designed or it does not give the specific indication about your business, often can leave a bad impression on you as a professional.

Keep the number correct – the invoice is a request for payment so you need to be super careful while adding the correct amount of payment. So track your hours and product sales accurately, send the correct amount for payment and keep the same timing while sending the invoice – good time management can take you a long way.

Keep sending invoices regularly – it’s the most important part of your business. As if you not getting paid it’s bad for your cash flow and you won’t have a business by the end of the day.

Select a delivery method – some companies tend you have paper invoices, either prefer online documents as they are more flexible, they can more around faster, can be processed, indexed and search easily.

Create well-designed invoices – everyone loves beautiful invoices. If you don’t have design skills there are a lot of invoicing solutions that have pre-designed temples which can fit your needs.

Personalize and add your business information in the invoice– your invoice is same as your business card. It needs to have all the information about your business provided so it can look professional and can make your business stand out.

Don’t get surprised – create an invoice with the amount that was already discussed with your client. If there is difference in the amount that needs to be paid, leave the difference out of the invoice and setting the misunderstanding additionally with your client.

Keep your items in order – there are several items that need to be added to your invoice like services performed, date and time range, hours worked, the quantity of items supplied, the rate per hour or item, amount, sub-total, tax amount and total. Some invoicing software has all this data pre-arranged so you do not forget some of them.

Add previously discussed payment methods – keep in mind not to forget the pre-defined terms about payment methods with your client before you send the invoice

Be professional and polite – at the end, this is still a business communication and part of the overall image of your company and business. So keep things professional if you want to retain your customers.

Accounting Software, Invoicing tool or Do Invoicing the Traditional Way

Each business has to handle its finances which include invoicing and bookkeeping in most cases. It can also include estimation of taxes, expenses, and billing from clients, which is the key feature in every sustainable and profitable business.

With the tendency of growth in all online businesses, as well as the increment in the number of freelancers and independent contractors, the need to have the right online tool or software to help with invoicing and bookkeeping is getting more stronger.

But when is the best time to get rid of the endless spreadsheets and docs in the cloud and start using a tool that can save you time, make you seem professional in-front of your clients and help you get your finances in a row?

Each and every one of us has started doing their invoices the hard way – the traditional way. In the beginning, the accounting needs to be simple and easy. All you need is a good knowledge of MS Excel, Mac Numbers, or Google Sheets. But as your business grows your accounting and invoicing becomes more complex. And you need more time to do it by yourself and it is a risk for potential mistakes while doing it.

Accounting Software, Invoicing tool or Do Invoicing the Traditional Way

Then comes the need to research and try out invoicing tools or accounting software or maybe both.

Here are several points to keep in mind on why you need an invoicing tool or accounting software:

  • If you create invoices, you need an invoicing tool. That’s the only way you can benefit from features such as recurring invoices and automatic payment reminders.
  • Invoicing software is very affordable. Some invoicing tools start from 0$ – 20$ per month depending on the features they offer.
  • When looking for “Accounting Software,” keep in mind to look for “double-entry accounting” or “double-entry bookkeeping” feature. If the software does not have that it’s an accounting software.

But what if you are a freelancer that has only a few clients. Or you just started your business?

Here are some criteria to have in order to qualify to use an invoicing software or tool:

  • You don’t have inventory.
  • You don’t have any payable account – like stuff you haven’t paid but you are going to soon
  • You are a one-person business and you don’t have any employees

Invoicing tools bring a lot of benefits for your business. Here are some of them:

  • They have fewer features and are simpler to use
  • Better value for money. Usually, they are much affordable for starting businesses
  • You can be paid faster especially since most invoicing software allows you to receive online payments via services like Payoneer, PayPal or Stripe
  • Accounting software can be hard to manage and confusing if you don’t have an accountant knowledge.
  • You will be more organized and you will look more professional in front of your clients
  • You can collect automatic payments and sales information
  • You will save time and resources used for traditional invoicing
  • You can send invoices from everywhere and have secure data

So do you use accounting software, invoicing tool or you do your invoicing the traditional way? Let us know!