Close this search box.
Blog » Business Tips » 5 Tips for More Effective Invoicing

5 Tips for More Effective Invoicing

Tips for more effective invoicing

We all like getting paid. As entrepreneurs or freelancers (or both), you need that cash flow. Without it, your business doesn’t thrive and your family doesn’t eat.

The cornerstone to getting paid is more effective invoicing. Setting up an online invoicing system that works well for you and ensures that you remain on top of the situation can help you get paid faster and on time.

Here are five tips that can help you with more effective invoicing:

1. Automate

There’s no reason to send out manual invoices these days. Cloud billing applications make it fast and easy to automate much of the process. For clients and customers that have regular orders, you can create a template to automatically go out on a recurring basis. Even for clients without recurring orders, you can create templates to speed up the process.

Set up payment reminders for regular intervals if the client has paid the invoice. Programs like Due keep track of when an invoice has been paid, so you can have reminders automatically sent when you aren’t receiving payment as expected.

2. Use Written Quotes for Work

You don’t want clients to feel surprised when they see your invoice. As a result, it’s important for you to use written quotes for your work. If you agree on terms over the phone, make sure to send a follow up email to reinforce the terms and make sure you are all on the same page. This is one of the most important parts of effective invoicing.

When you send your invoice, the client will be expecting what you ask for, and will be less likely to be upset by the turn of events — and more likely to pay.

3. Create a Payment Policy with Short Terms

When possible, set a payment policy with short terms. Most of my clients pay within 30 days. In fact, many of my clients pay with 15 days — or even immediately. When you can set the payment terms, try to keep them short. That way, you receive your money faster.

This is something you need to talk about when you first establish your relationship with the client. You’ll enjoy more effective invoicing when you are up front about expectations, put them in writing, and then stick with it for invoicing.

Sometimes, long payment terms are unavoidable. I have some clients with policies involving net 45. It’s not my favorite, but in some cases it can’t be helped, so I do my best to make sure that other clients have shorter terms.

4. Keep it Professional and Polite

There is no substitute for professionalism in business. Word your invoices politely, using terms like “thank you for your business.” You can also add due dates to your invoices. Say “please pay by X date” or “please pay within 15 days of receipt” to set expectations and be polite. You want to be seen as a professional in your invoices, whether you are describing the services and goods you provide or whether you are thanking your clients for their patronage. Even when you are asking a deadbeat client for money, make sure to keep it polite and professional.

5. Number Your Invoices

Don’t forget to number your invoices. Not only does it add a touch of professionalism, but it can also help you keep better track of clients and payments. More effective invoicing can lead to better record keeping for the future, helping you at tax time and ensuring that you remain on top of the situation no matter what.

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

Credit Expert
I’m Miranda and I’m a freelance financial journalist and money expert. My specialties are investing, small business/entrepreneurship and personal finance. The journey to business success and financial freedom is best undertaken with fellow travelers.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.


Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More