When you have a commission based business, there is one thing you may dread more than anything: invoicing clients.
That perfect invoice, where everything works without a hitch and you receive payment on time and in full, is rarer than you’d like to admit.
Understanding the proper setup on how to invoice a client can save you frustration, client relations, and of course well-earned money.
Let’s see how you can help your invoices work the way you intend them.
5 Tips on How to Invoice the Right Way
To get a grip on how to invoice a client, you need to hammer home what goes wrong every time.
Sometimes a client can’t pay, sometimes they wait till the last minutes, sometimes it all gets forgotten in the shuffle and you are desperate to keep them reminded.
With these 5 tips, you can get your payments back on track and keep your reputation as a business neat and tidy.
1. Make Sure to Have All the Information
Sometimes it is the most simple of ideas that hit you the hardest.
It may seem like an easy thing, but don’t forget to collect and process all of the proper information. Client information is the biggest, as without that you can’t send an invoice or even prove they owe you money.
You should also have all contracts and messages discussing the project in question tucked away in a neat, backed up, and secure filing place.
2. Clear and Concise Policy
There can be a lot of confusion regarding invoices and your companies policy. This can make up a large portion of your invoice problems.
Make sure to have a long and thorough discussion with your client on all of your company policies and how invoicing will work. Walk them through the process, step by step, and make sure they understand.
Expectations are a major part of a client relationship. Everything you do needs to be what the client expects or problems will happen.
3. Enticing Action for Early Payments
Sometimes knowing isn’t enough. When in doubt, try out methods to entice your clients to pay early and in full.
This can with positive notions like granting discounts to clients who pay earlier than the due date. You can also include a rewards system for frequent clients who pay on time.
A negative route can also work, often in tandem with positive bonuses. This often means late fees and withholding the finished product until you receive the payment.
4. A Proper Collections Policy
When the worst happens, you need to turn to collections to salvage what you can from a failed client relationship.
First, you will need to consider how you want to do the collecting. There are debt collectors that you can hire, but you need to be mindful of fair debt collecting practices beforehand.
Second, you need an extra bit of leverage to counteract hitting the collections mark.
The best way may be to charge a deposit at the beginning. This not only allows you to get at least some payment if things fall through but can also weed out the iffy clients that would end up dodging payments anyways.
5. A Professional and Powerful Setup
When it comes to the actual invoice and invoicing process, you want to provide a professional and attractive looking invoice. This helps keep a professional look while keeping organized.
There are many programs that can help with this. For that professional touch, start with free invoice templates from Adobe Spark.
Now that you have a better grip on how to invoice in a professional manner, you can keep your business running at full steam.
A Smooth Running Business
Missing out on even a single product payment can be damaging. Remind yourself of these 5 tips and integrate them into your business. The effort will be well rewarded.