There’s so much to consider when setting up a new business. Writing business plans, acquiring property and securing your licenses and permits are likely to be high up on your ‘to do’ list but what about invoicing? Creating a robust invoicing system will not only increase the likelihood of receiving your income on time but, when done well, can boost your company’s reputation. The routine task of sending an invoice sounds simple, but there are many things to consider when it comes to establishing your very own system. Continue reading to find out all about invoicing and how to create an individualised system for you.
There’s some information that you have to include within your invoice in order to receive payment and when you’ve never written one before the basics will not be obvious to your new business. First and foremost, you’ll need to include your personal details. This includes company name, address, bank details and invoice number. You’ll easily be able to slot in your details but creating an invoice number is something that will take careful consideration. It’s important to ensure that each bill has a unique number so you can track down specific invoices in the future should someone make a query or you need to present details. The invoice ID can be a string of any letters and numbers, most people choose IN000001 for their first invoice or may choose to include a date such as IN24072020. Whatever you choose, just make sure each invoice is unique and you’ll be on the right track.
What Does A High Quality Invoice Look Like?
Once you’ve mastered the basics you can think about to ramp up your bill of sale. The purpose of an invoice is to clearly state what service or product you provided and how much you are charging for it. A high quality invoice will make this information clear to a client without the need for you to expand before they make a payment. For example, if you give a vague description of your completed work without making yourself understood you run the risk delaying your payment. With this said, you shouldn’t ramble on as your invoice should fit on one page. Concise and to the point text is key to a honourable invoice. Once you know that your invoice is insightful, you can think about it’s aesthetic. Adding your company logo and key fonts is a great way to make your company appear as professional and purposeful as you know you are. There are many templates to choose from when it comes to invoices so be sure to choose one that represents your business well.
Can Invoicing Software Help?
If you’re still not feeling 100% confident when it comes to founding your new invoicing system, don’t worry. There’s a vast range of different invoicing software that will lighten the load and bear the burden for you. There are many benefits that come with purchasing accounting software that include, dozens of templates to choose from, ‘pay now’ options for clients and recurring invoices for long term customers. Not only will you get to use high tech and highly professional processes you’ll also be able to call upon the specialists for advice and support should you ever need it. Not everyone chooses to purchase software for invoicing alone but if you’re planning for growth then investing in accounting software that also supports payroll services and financial assessment then it may be worth your while.
With invoicing bearing more responsibility than just collecting payment, considering all the points above will allow you to create an effective and powerful unique system for your new business. Green invoicing is paperless invoicing, which is something you should build right into your system. But consider that some clients may prefer the old fashioned snail mail instead.