The Ultimate Guide to Invoicing Clients in 2023
February 01, 2023
As a business owner, you must issue invoices for your clients.
Although creating a client invoice might seem difficult at first, don’t worry—we’ve got your back!
In this article, we will cover all the key steps to invoicing the right way and show you how to make a client invoice like a professional.
So, let’s jump straight into the action and learn more about client invoices!
How to Invoice Clients The Right Way
Creating a client invoice doesn’t have to be difficult or time-consuming. With the information below, you will be able to issue an invoice with minimal effort in no time.
#1. Get to Know the Client
Getting to know your client well is the first stage in the client invoice process.
Information, such as the name, phone number, email, and physical address, are essential, but you have to go beyond that.
You must determine whether your client is legitimate by examining their prior professional collaborations. Knowing what to expect in terms of a business partnership will allow you to decide whether or not that type of collaboration is suitable for you.
Determining the client's legitimacy will also help you stay safe and avoid getting involved with a client that can potentially scam you.
In addition, you should also study your client's business to see whether you can work together. To find out if you can get paid fairly and promptly for the services you’re offering, you may want to take a closer look at the payment options they provide.
#2. Set up a Contract
When you get to know the client and decide that you want to work for or with them, you should move on to the next stage, which is setting up a contract.
A contract is a legal document that signifies an agreement between two parties. Not only does it indicate the terms agreed upon, but also, because it is a legal document, you will be able to defend yourself and your rights in the event that your client violates the terms of the contract.
Ensure the contract properly states all the terms you and your client agreed to avoid any misunderstandings. Lastly, make sure that nothing is omitted or misconstrued because doing so could lead to issues in your working relationship and possibly beyond that.
#3. Clarify Payment Terms
A section describing payment terms should be included in the contract you deliver to your client.
This section should be as thorough as possible. Dates for payments, details on billing cycles, and—most importantly—payment options are all found there.
Direct deposit, wire transfers, credit or debit cards, checks, and services like PayPal are just a few of the payment options you might list. The more payment options you accept, the better.
If you only provide one payment option, your client might not send the payment because they don't know how to use it, or they might take a long time to figure out the system, which would cause a delayed payment. Therefore, the more you provide, the easier it will be for the client to proceed with the payment process.
#4. Create a Professional Invoice
If you want to have a safe partnership with your client, then you need to create a professional client invoice.
A client invoice should include the following:
- Contact information. An invoice has to have both your and your client’s contact information. This includes names, phone numbers, email, and physical addresses, etc.
- Invoice number and dates. For accounting purposes, each invoice has a unique number. In addition to an invoice number, an invoice must include both the issue date and the due date for all payments.
- Work description. You should include details about the service you are offering. You may, for instance, describe the service, how long it will take you to complete it, the quantity of items (if applicable), and any other information you think is relevant.
- Payment terms. Finally, payment terms are necessary for an invoice to be complete. Here, you can take into account the payment deadline, billing cycles, as well as payment options like PayPal, wire transfers, and others.
#5. Send Invoices Promptly
While it is important to issue a professional client invoice, it is just as important to send one on time. Your client will view you as more professional and know that you're serious about your partnership.
While this is a good enough reason, the major motivation for sending invoices on time is to facilitate payment. Invoices serve as a means of receiving payment in addition to providing all necessary details about the service or product provided.
Therefore, the sooner you send your client an invoice, the sooner you will be paid for the work you have already done or will complete.
#6. Follow up On Overdue Invoices
Even if you create a professional client invoice with all the necessary details and send it promptly, your payment could occasionally be delayed.
There are a few things you should do if your payment is not received by the due date stated on the invoice.
Contacting your client should be your first priority. You can phone them or send them an overdue invoice letter.
If your client is unresponsive or refuses to send the payment, you can hire a debt collection agency, or in the worst-case scenario, take legal action.
#7. Thank the Clients For Payments
If you have ever dealt with late payments, you are more likely to see the importance of showing gratitude to those clients who make payments on time.
Thanking your clients for sending payments is a simple gesture that will only help foster favorable perceptions of your partnership. It will also show that you appreciate the chance to work with them and that you are interested in your client’s experience with the services you provide.
4 Extra Tips on Properly Invoicing Clients
After going through the above-mentioned steps, you should be more aware of how to invoice clients properly. In case you are not feeling very confident, here are four more tips that you can use:
- Keep track of your invoices. As a small business owner, you may be dealing with many client invoices. In the stream of numerous documents, your client invoices can get lost easily. So, make sure to keep them organized. You can create a folder for all of your invoices and group similar ones together. Make sure every invoice has an invoice number as well as the issue date. These details will help you stay more organized and find exactly what you are looking for in no time.
- Ask for a deposit. It is important to occasionally request a down payment for the services you are offering. This does not imply that you lack confidence in your client. While having some assurance that you will be paid is wonderful, the main goal of requesting a deposit is to cover the costs related to completing the project. You wouldn't want to start something just to find out halfway through that you lack the money to finish it.
- Use the right type of invoice. It is crucial for you to know what type of invoice to use. There are many different kinds of invoices available, including writer invoices, graphic design invoices, construction invoices, actor invoices, etc. Your choice of invoice will depend on the kind of business you run.
- Always remain professional. No matter what happens, you have to stay professional. There may be times when your client breaches the contract, is late with the payment, is unresponsive or hard to reach, etc. Even in these scenarios, professionalism and composure are required. Don't let your emotions rule your actions; doing so will only impair your judgment and prevent you from taking the necessary steps to resolve the problem at hand.
How to Make a Flawless Client Invoice in No Time
You can use an online invoice generator if you don't have enough time or the necessary skills to make an invoice. You only need to:
- Open our free client invoice template
- Fill in the blank spaces with essential information
- Review the invoice to ensure it’s free of errors
- Download it and send it to your client
You can create a professional client invoice by following these four easy steps. The generator can be used to produce invoices for contractors, freelancers, and small businesses, among other types.
Here it is—the ultimate guide to creating client invoices.
Knowing how to invoice clients properly makes the biggest difference in your company's success. Client invoices are essential for bookkeeping and payment requests, among other things.
If your client invoice is set up properly, you won't have to worry about disputes with clients or potential payment delays. So make sure to issue a professional client invoice using a free online invoice generator.
- Invoicing clients the right way can make all the difference for your business.
- To ensure that you are invoicing your clients adequately, you should get to know them, set up a contract, clarify payment terms, etc.
- Additionally, you should strive to keep your invoices organized, request a deposit when required, utilize the appropriate invoice type for your business, and act professionally at all times.
- Use an online invoice generator and choose a free invoice template if you're looking for a quick yet effective way to create a professional invoice.