An invoice is a time-stamped document that records transactions between a buyer and a seller. Types of invoices include a paper receipt, bill of sale, debit note, sales invoice, or an online electronic record. Either way, keeping track of your invoices can be pretty much stressful and frustrating. And if you are a small business, this particular task can be more difficult. But if you have a systematic process for your invoices, this job can be manageable.
One important thing small businesses should remember for invoicing is always to include all necessary details. That consists of the invoice date and number, billing period, your business name and billing address, your customer’s name and address, payments terms and due dates, bank details, and lastly, your contact information. Clearly stating all these details can be helpful in filing your invoices. Apart from this, you are also enabling your customers to pay efficiently.
Another tip you also need to provide comprehensive descriptions of each charge in the invoices. By doing this, you allow your customers to see what they bought and how much their items cost. And if the breakdown of their purchase is clearly stated, they would not doubt the accuracy of your invoice, which can result in them paying on time.
Businesses thrive with a consistent cash flow. With this being said, you must send your invoices as soon as you finish a project to ensure that your clients can read through your payment terms and deadlines and additional fees in case they did not pay on time. This practice can also help you in avoiding unfortunate scenarios such as forgetting to send the invoice.
These three are just some of the best practices that you can use to ensure your business growth. But if you still find it difficult to build a systematic invoicing process, you can search over the net and look for the free invoice maker app and small business bookkeeping app in one to assist you. You can also read through this infographic from KIPPIN for more information.