16 January 2024

How to Create an Invoice That Gets Paid

By Ronald Smith

How to Create an Invoice That Gets Paid

Hi there! If you want to make sure you get paid for your hard work, I’m here to help you create an effective invoice. Let’s dive right in!

1. Be Clear and Professional

When it comes to creating an invoice, clarity is key. Make sure all the important details are clearly mentioned, such as your contact information, the client’s information, the date, and a unique invoice number. Being professional goes a long way in building trust with your clients.

2. Provide a Detailed Description

No one wants to be confused about what they’re paying for, right? So, it’s essential to provide a clear and detailed description of the products or services you’re invoicing for. Break it down in a way that’s easy for your client to understand, and don’t forget to include the quantity and price per item.

3. Set Clear Payment Terms

It’s important to establish your payment terms right from the start. Let your client know when the payment is due, what forms of payment you accept, and any late payment fees or discounts for early payment. The clearer you are about your expectations, the smoother the payment process will be.

4. Include Your Bank Account Information

If you prefer to receive payments through bank transfers, make sure to include your bank account information on the invoice. Double-check that the details are accurate to avoid any mix-ups. This will make it easier for your client to make the payment in the way you prefer.

5. Send a Polite Reminder

Occasionally, clients may forget about an invoice or overlook it. Don’t worry! It happens to the best of us. Send a friendly reminder a few days before the due date to gently nudge them to make the payment. Remember, staying polite and professional is always the way to go.

6. Follow Up if Needed

If the due date has passed and your client still hasn’t made the payment, don’t be afraid to follow up. Send a polite email or give them a call to inquire about the status of the payment. Sometimes, all it takes is a gentle nudge to get things moving.

And there you have it! By following these simple steps, you’ll be well on your way to creating an invoice that gets paid. Good luck!

How to Create an Invoice That Gets Paid

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When ya send an invoice to a customer, ya expect to get paid not long after they get the invoice. But let me tell ya, as any service provider will tell ya, that hardly ever happens. FreshBooks did some research and found out that on average, 1 outta every 4 self-employed folks get owed up to $2,000 by late payin’ clients.

So, how can ya get yer customers to pay yer invoice faster? Well, according to FreshBooks, it can be as simple as followin’ these 7 tips they came up with. And let me tell ya, their data research team analyzed 10,000 invoices to create this checklist, so it’s definitely worth checkin’ out.

Did you know that according to FreshBooks, a whopping 91% of freelancers who used their checklist actually got paid in full? That’s pretty impressive, right? Now, I’ll admit, invoicing may not be the most glamorous part of being a freelancer or running a small business, but it’s definitely a crucial one. In fact, even self-employed professionals who send out hundreds of invoices every year can attest to its importance.

Now, let’s talk about getting paid on time. This is a biggie.

So, FreshBooks crunched some numbers and found that out of 10,000 invoices they looked at, a lot of self-employed professionals had some serious overdue invoice issues. And get this, a staggering 40% of these professionals had at least one overdue invoice, with an average of $2,500 hanging in the balance.

Now, think about it for a moment. Imagine having not just one, but multiple overdue invoices piling up. Yikes! It’s not hard to see how that could quickly spell trouble for your business. And you guessed it, this leads to some major cash flow problems. Trust me, cash flow is a constant headache for small business owners and freelancers alike. And you know what? Not getting paid on time is without a doubt one of the biggest culprits.

It’s interesting how different industries have varying payment speeds. According to the data from FreshBooks, IT and trade professionals usually get paid every 16 days on average. Legal professionals have to wait about 20 days, and creatives have to wait even longer, around 21 days.

Here are 7 helpful tips:

  1. Instead of sending your invoice at the end of the month, try sending it earlier. It turns out that sending invoices on the 30th and 31st actually takes up to 20% longer to get paid.
  2. Try to limit the number of line items on your invoice to 2-5. According to the data, this seems to be the sweet spot. Only include more when your client specifically asks for a detailed breakdown of your work.
  3. If possible, break down your total amount into multiple small invoices. The analysis of the data shows that invoices lower than $1,660 are paid 11 days sooner.

When I send an invoice, I make sure to clearly state my payment terms so that my clients understand how to pay. It’s important to use accurate and simple language to avoid any confusion. I’ve read that invoices that mention late fees have a higher chance of being paid, about 94% of them!

It might sound strange, but being polite in your invoices actually helps. According to the data, invoices that include words like please and thank you are paid on average two days faster compared to those that don’t.

To make it easier for my clients to pay, I give them multiple payment options, including online payments. Did you know that when online payment is available, invoices get paid seven days faster? It’s amazing how convenient technology can be!

To make my life easier and ensure that my clients don’t forget about their due dates, I’ve started using automation. It sends reminders to my clients when their payments are overdue. It’s a great way to make sure they’re reminded, and it’s one less task for me to worry about.

Overall, by making my payment terms clear, being polite, offering convenient payment options, and using automation, I’ve been able to improve my invoicing process and get paid faster.

I’ve got a nifty checklist for you, packed with useful information. It’s based on loads of data and can really up your game when it comes to getting paid for your work. Although I can’t promise it’ll work every time, it definitely improves your chances.

Alright, so first things first. Once you’ve got a well-oiled invoicing system going, I suggest creating a template. This way, you won’t have to start from scratch every single time you need to send out an invoice. Seriously, who needs that extra work, right?