Invoicing: How to Make Sure You Get Paid

When I first started my own small business as a freelance writer, I remember having discussions with clients about my rates before beginning projects.

I also remember being shocked at what was expected of me when it came to the administrative work.

I knew that keeping track of financials would be important, but I was somewhat blindsided to the time and organization that went into the details, particularly when it came to billing clients. I had to learn all of the best practices for invoicing on my own.

I don’t want other business owners to go through the learning curve I did, so I’m sharing my experience here. I’ll go over my personal best practices for invoicing, what I would consider when comparing and choosing invoice software, and also tell you about several options that can make invoicing easier.

And speaking of easier, we also have a FREE invoice template you can download to get started!

Invoicing: What Are the Best Practices?

The first invoice I sent was quite simple and it worked just fine. After all, the client did pay me for my work.

But as I’ve become a more seasoned business owner, I’ve learned that knowing more about invoicing could’ve made things easier for me, and ensured my less experienced self an easier time managing administrative details.

Here are some of my best practices when it comes to invoicing:

Invoice immediately.

Once a project wraps up, invoice your client. In fact, you can even choose to invoice your customer or client after you’re hired, if you’re working with a set of terms that you don’t think will change throughout the project.

If you do, just be sure to specify the payment terms (e.g., “Payment due 30 days after project completion”).

Sending an invoice immediately helps to demonstrate that you’re on top of your administrative game and take your business seriously.

Invoice regularly.

It’s not always the case, but if we’re lucky, sometimes a client will decide to work with us on a continual basis.

If you get customers or clients who want to work with you on a regular basis, invite them to set up a regular payment plan with you, in response to regular invoices that you’ll send. This may seem like an arduous process, but many online invoicing tools have features that help make this easy.

Being consistent with your invoicing will help you stay organized throughout the project and help uphold your authority to your client.

Remind clients of payments.

It’s a best practice to make sure you specify your terms of payment on your invoices, or rather how and in what time period you’d like to be paid.

But just because it’s written, doesn’t mean your client will take it to heart. There’s a chance that they may not pay you when the invoice is due.

As a result, we suggest getting in the habit of setting up payment reminders for your invoices. This way, your customer is less likely to forget an invoice is upcoming and you can avoid sending late payment letters.

Make it easy to pay your invoices.

Surely you can relate to this. Have you ever called a company to pay a bill, only to be referred to yet a different number to process your payment? It’s such a hassle!

Don’t allow your customers or clients to have the same unpleasant experience. Instead, make it easy for them to pay you for your work.

These days, this typically means paying in some way online, whether it’s by setting up an ACH transfer, the ability to use a credit card, paying through a portal, or whatever you choose.

Regardless of the method, make it simple for the client to understand, so that it’s easy for them to pay you.

Include a detailed description of your product or services.

A lot of the projects you may seem pretty straightforward to you, but it’s important to be as descriptive as you can on the invoice.

For example, if I’m copy editing a cookbook for a client, I could simply write “Copy edit of one cookbook for publisher” on the invoice. But that hardly says much about the project.

Think of it this way: If someone else on your client’s team or in accounting looks at the invoice, they should be able to understand the project.

Instead, I might write: “One copy-edited cookbook for publisher; 216 pages total; 100 recipes; alt titles for 100 images for digital version; edited using Chicago Style.”

See? Now if the client’s accountant were to see this invoice, they have a better idea of the overall scope of the project. If you’re working with materials (like specific equipment or materials you purchased for the project), you also can include these as line items on the invoice.

You may need to reference an invoice at a later date when bookkeeping, or your client may have questions about what goes into the cost. Whatever the reason, providing detailed line items can help both you and your client.

Being clear on due date and payment terms.

We mentioned before that it’s a good idea to do all you can to avoid dealing with late payments.

Just like you should make it easy to pay, be upfront with your due dates and terms as well. For example, instead of saying “Due the second week of October,” say “Due by 12 p.m., October 10.”

It’s standard to have a 30- or 45-day term for payments. If you decide to do this, consider saying something along the lines of “Due 30 days from invoice date.”

Some invoice software tools allow you to add these kinds of notes automatically, but you also can choose to specify further by saying, “Due 30 days from date of invoice, on October 30.”

Have a checklist when setting up new accounts.

These best practices can be difficult to remember. Especially when you’re in the thick of work and need to be moving swiftly to be efficient, it’s easy to forget things.

When sending an invoice, you obviously want to make sure you have the client’s necessary information saved in their account.

We find creating a checklist with the steps of creating a client’s account to be helpful. What information do you always need to have on hand? Things such as phone, mailing address, alternate contact person, client’s communication preference (phone vs. email).

Depending on the invoice software you choose, you may have access to other features you can use when setting up an account; be sure to include those steps in your checklist as well.

Any other important notes.

It’s always good to include information on your invoice that assures your clients of your professionalism and authority.

The notes section is a great place to reiterate your company has business insurance and if they’d like, the client may ask to see your certificate of insurance (COI).

Before Choosing Invoice Software, Consider:

There are so many invoicing software options out there! On one hand, it’s fantastic that we have so many apps to choose from.

On other other hand, it can be overwhelming. We have a few questions you can ask yourself before deciding which invoicing software you’ll use with your clients.

How do clients intend to pay the invoice for the work?

Some of your clients may want to pay online with a credit card, while others may prefer to send a check.

Keep their preferred method of payment in mind, because different invoice software tools have the ability to process different types of payments. For example, if your client prefers to pay by linking their bank account with yours, while another prefers to pay with a credit card, you may want to look for a software that works with both.

Do you need time tracking to invoice?

Not all clients require you to track your time, but some like knowing how much time you allocated toward each aspect of a project, especially if you charge on an hourly basis.

For example, if I were to track my time on the copy-editing example project, my client may find it interesting that I spent an extra half-hour on a few of the chapters in the middle of the book, which had more complex instructions.

Since I spent more time on these sections, of course I would be paid more.

Not all invoicing tools include a feature allowing you to track time, but if you anticipate this will be something your customers will request, consider a tool that has it.

Will other team members need access?

If you’re a business owner working solo, this may not apply to you. If you have a co-founder, partner, or employees who may need to access the invoice (e.g., maybe you have an employee who handles the vendor relationships), then you’ll need to consider access availability to your invoices.

If others in your small business will need access to your invoices, then we suggest keeping that in mind when considering which features you need.

Invoicing Software to Consider:

Microsoft Word or Google Docs?

Most small business owners can easily access Microsoft Word or Google Docs and simply create invoices there.

They don’t need to be fancy! They just need to have all the crucial information included. I started out creating my invoices in Microsoft Word, but once my business grew a bit, I started using an invoicing software.

In fact, we have a great FREE freelancer invoice template to download here!

FreshBooks

Features(1)

• Recurring payments
• Late/unpaid invoice emails
• Late charges possible
• Trial without credit card
• Accounting features
• Time tracking
• A mobile app

Wave

Features(2)

• Invoicing
• Accounting
• Links to bank
• Easy-to-use
• Free (but some fees when clients pay with credit card)
• Mobile app

PayPal

Features(3)

• Easy if your clients currently pay via PayPal or if your clients use it
• Unlimited clients and invoicing
• Can confirm if an invoice is paid/unpaid
• Not many features for managing invoices after creation

Paymo

Features(4)

• Unlimited invoices, expenses, and estimates
• Time tracking
• Task tracking
• Free trial

QuickBooks

Features(5)

• 30-day free trial
• Invoice sending & accepting payments
• Maximizes your tax deductions
• Customer support

Bonsai

Features(6)

• 30-day trial
• Helps organize projects
• Tracks time
• Creates proposals
• Auto-bill

Plutio

Features(7)

• 14-day trial without credit card
• Helps organize projects
• Real-time messaging
• Proposal creation

Harvest

Features(8)

• Time tracking
• Good for team time tracking
• Invoice emailing
• Supports online payment methods
• 30-day free trial

Remember–this is just a general overview of products that are out there. We absolutely recommend that you demo and see which product is right for you before deciding which to go with.

Making an Invoice Doesn’t Have to Be Hard

When you’re a business owner, invoicing your customers or clients doesn’t have to be complicated or frustrating. We recommend saving the work for your actual work (though, hopefully, it’s enjoyable and not too tedious!).

If you’re starting out, it’s OK to use a basic template then switch to a more advanced software tool.

In fact, it’s OK to use basic invoice layouts for as long as you’d like, especially if the system works well for you. Feel free to keep this article on hand for reference when it comes to billing — and don’t forget your trusty checklist!

References:

1. Learn more at Freshbooks.com.
2. Learn more at Waveapps.com.
3. Learn more at Paypal.com.
4. Learn more at Paymoapp.com.
5. Learn more at Quickbooks.intuit.com.
6. Learn more at Hellobonsai.com.
7. Learn more at Plutio.com.
8. Learn more at Getharvest.com.