6 invoicing tips and tricks for small business owners

Let’s get real here, invoicing is one of the processes many small business owners dread. But at Workhorse, we know just how important invoicing can be.?

After all, you don't get paid if you don’t invoice your clients!

Thankfully, with a few tricks and tips, you can blast through those invoices with ease. Let’s dive straight in.

1.?Provide quotes and agreements prior to invoicing?

The journey to stress-free invoicing starts before you secure a contract. Most invoice disputes involve unexpected expenses. The project went over budget, it required more resources than expected, or the project took longer than predicted — all these and more are disputes you’ve likely run into.

Be proactive with all customers by making sure they understand what the work will entail, the costs associated with this work, and the potential for unexpected costs. Do this before signing any agreements to ensure everyone is on the same page before starting a project.?

Not only will this make the invoicing process run smoother, it sets expectations early.?

2.?Set clear payment terms

During the negotiation stages, make sure to set out clear payment terms. This helps set expectations before going into a formal agreement while also ensuring that you will be paid correctly and promptly.?

Key information to include at this stage includes:

How to pay?

Due dates

Any additional fees due to late payment?

Any applicable warranty and return policies?

3.?Make your invoices specific?

The key to getting paid quickly is to make your invoices easily identifiable.?

Your client will likely have a million emails and files labelled ‘invoice’. This makes it incredibly difficult to find a specific invoice, even with computer search functions. The more detailed your invoices can be, the easier it will be for your client to find them.?

Start with the basics. You should include a unique reference number to help you and your client find specific invoices. This reference number should also be used to identify payments.?

And don’t be afraid to get specific when listing items on your invoices. Your clients can gain a better understanding of the work you do if itemise everything. It can also help customers understand the value you provide by putting financial figures on each task.

4.?Move from manual to automated Invoicing

It’s 2022. It’s probably time to stop using paper invoices.

Even if you’re only sending out a couple of monthly invoices, it’s still a long process that gets even longer by printing and posting physical invoices. You’ll also be wasting money on postage, paper, ink, and envelopes when you could simply email your invoice.?

Using the right software can make the process even easier. For example, Workhorse lets you keep tabs on your invoices with our simple invoices tab. Combined with Xero, your invoicing process can be a breeze. You only need to input your data once to update both platforms and quickly email the invoice to your client.

5.?Brand your invoices

Branding is so important. It sets the tone for your business and helps clients remember you in the future. So, why do we see so many standard invoices??

Don’t be afraid to incorporate your branding into your invoices. How your clients see your invoices is influenced by which colours, fonts, or templates you choose and can help them easily connect your invoice to your company.??

6.?Don’t be afraid to follow-up?

Trying to get your clients to pay up can feel uncomfortable, especially if you’re running a smaller business. You may be tempted to take a back seat to avoid coming across as demanding and awkward, but you need to follow up on unpaid invoices to avoid being short-changed.

While it may feel like demanding money is aggressive, it’s your money. You performed a service or provided a product and you had an agreement — you deserve the money you earned.?

Time to tackle those invoices!

Hopefully these tips will help you take on invoicing with gusto!?

But if you’re still ‘meh’ on the idea of doing invoices manually, send me a message!?

I’ll show you how Workhorse can help you automatically invoice your customers and free up your time for the things you actually like doing.??