![]() ![]() I was standing on thin ice and didn’t even know it. I had no idea how outstanding invoices could impact my business. Or what to do if someone didn’t pay for an extended period of time. ![]() I never considered how to handle a past due invoice. I simply hoped that a client would pay me on time. There was no, “payment due in 30 days” or anything like that. Starting out with a new business, I didn’t want customers to see me as a rookie (fake it till you make it, am I right?). I was drawing tables, formatting text, making sure everything looked professional. They weren’t pretty but, they did the job. So I fumbled my way through Google Docs and put most of the necessary information on my invoices. And I definitely hadn’t thought about what to do with an unpaid invoice. I literally started Googling “what to put on an invoice.” I had no idea what I was doing. My business grew and as I landed other clients I started receiving emails saying “just send an invoice for this month.” And I didn’t feel professional using them. None of them were effective or particularly good for business purposes. I took Venmo, Cash App, or whatever a client wanted to use. A pretty risky way to do business when I look back on it.īeyond not having an invoicing process, I had no consistent method of accepting payments. My “invoice” was typically an email exchange that included a price no agreement or formal documentation. In the early days of my freelancing business, I didn’t even use invoices. Trust me, I know the pains of creating my own invoices. If you can become a well-oiled invoicing machine, you can unlock potential in your business and reduce the amount of time you spend trying to get paid. You’ve worked hard and billing for all those hours is your reward. It does not have to be something that causes you to sweat at the end of the month. So many freelancers dread the billing process. We’re here to guide you, from creating an invoice to managing a client who refuses to pay. The last thing you want to be thinking about at night is if your client will pay you on time. ![]() Having a plan in place will reduce the number of unpaid invoices on your books. Resolving these issues starts with a good invoicing process. It can be detrimental to your work when you are struggling to get paid. ![]() If any of this sounds familiar, we hear you. Truthfully, you’re not even sure they received it.Ī week or two goes by and you forget to follow up because you’re working on other projects. First, you create an invoice, typically in a Google Doc, save it as a PDF file and send it to your client. If you’re a team of one, it’s not a task you can delegate. This is magnified when you aren’t paid on time. Most business owners hate the invoicing process. Notes: Include any additional info your customer should know, including terms of service and payment terms (for example, payments are due 30 days after the invoice has been issued).Yeah, we felt you shudder and we get it.Total: Outline the total amount due from the customer, after tax.This is legally required to provide on invoices, and your rate may differ depending on where you run your business. Tax: Indicate the tax rate applied to the subtotal.Subtotal: Add up the subtotal of your goods or services, before tax has been applied.For each line item, include a brief description, quantity, individual unit price, and total price. Line Item: Add individual line items for each unique good or service you provided.Dates: Include the date when your invoice has been issued and the date when payment is due.For example, if you're sending your very first customer their first invoice, the invoice number could be 001-001. You can format this based on sequence and customer. Invoice Number: Include a unique invoice number to help you track down this invoice in the future.Customer Details: Under "Bill To", add your customer's name, address, and contact information.Company Details: Add your company name, address, phone number, and logo to the top-right corner.Title and Description: Name the project and briefly describe what type of work your client is being invoiced for. ![]()
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