How to send an invoice in 3 steps.
Learn the basics of setting up and sending invoices for your business, as well as tips on how to make the process more efficient.
To navigate the invoicing process effectively, it’s essential to grasp the ins and outs of how to send an invoice. Whether you’re a freelancer managing your own finances or a business owner seeking to maintain a steady cash flow, our guide will walk you through what you need to know.
Effective invoicing is essential for business success. It includes three key steps — setting up your invoicing system, refining your invoice template, and sending the invoice. Let’s explore the key steps to make billing and payment smooth when sending an invoice.
1. Set up your invoicing system.
In order to collect payment for your goods or services, you’ll first need to determine your preferred method of invoicing. This can be as simple as creating a template document that you can edit. You could also use accounting software that generates professional invoices for you.
2. Set up or review an invoice template.
When creating a new invoice template or updating an existing one, ensure it covers all the basics. Include your business details, like your name, address, and contact info. Add a unique invoice number and date. Don’t forget the client’s info and any specific requirements they may have. List the services or products, along with their costs and quantities. State the payment terms, including the due date and acceptable payment methods. If needed, include tax details and any special notes. For existing templates, double-check that they suit each client’s needs, making any necessary adjustments for branding, language, or additional fields. A well-organized and client-specific invoice template makes billing smoother and strengthens your professional relationships.
3. Send the invoice.
Once you have your invoice ready, the next thing you’ll need to decide is how to send it.
You could send a paper invoice in the mail, of course. But invoicing by email is the quickest way to get paid since your client or customer can instantly review the information and process the payment. Email is also the quickest way to follow up if there is a delay in payment processing.
Whether you’re sending an invoice through your personal or business email, you’ll want to include a brief note referencing the invoice in the body of the email and then attach the invoice itself as a separate PDF. Some companies may want to print a hard copy of your invoice or download the file for recordkeeping, so you should avoid pasting the invoice directly in the email.
If you’re using accounting software, the invoice can be sent via the platform to your client’s email address on file. Usually, an editable email will be auto-generated for you, and the invoice will be shared as an attachment.
When to send an invoice.
Knowing when to send an invoice is just as important as understanding how to send an invoice, as timing plays a significant role in ensuring prompt payments and maintaining a healthy cash flow for your business. The timing of when to send an invoice depends on your specific business circumstances. In general, sending an invoice before commencing work can secure payment upfront and build trust. For ongoing projects, you may want to consider doing periodic invoicing to help maintain a steady cash flow or send the invoice once the project is complete, as per your agreement with the client.
How to send invoices more efficiently.
If you find yourself invoicing often, there are a few standard practices that can help speed up the process. Consider creating:
- An invoice template document
- A simple email template for sending invoices
- An email template for following up on unpaid amounts
Use best-in-class tools to send an invoice.
Whether you’re a freelancer or the owner of a company, understanding how to invoice someone is an essential element of your business. Keep yours moving with electronic signatures for invoices and other professional documents.
