Have you ever done work for a client and then had a hard time getting paid? Or, have you ever invoiced a client only to have them claim they never received it? If so, then it might be time to consider setting up a more streamlined and efficient invoicing system. By taking a few simple steps, you can ensure that you always get paid for the work you do—and that your clients always know exactly what they’re being billed for. Read on to learn more about how to set up an invoicing system that works for both you and your clients.
There are four key components to setting up an effective invoicing system:
1) Time tracking
2) Creating and sending invoices
3) Keeping track of payments
4) Sending out reminders for outstanding payments
1) Time Tracking:
In order to create accurate invoices, you will need to track the time that you spend working on projects. There are various ways that you can do this, but we recommend using a time tracking method such as QuickBooks Time Sheet or Toggl. This will give you a detailed record of the hours that you’ve spent working, which you can then use to create your invoices.
2) Creating and Sending Invoices:
Once you have a record of the time that you’ve spent working, you can create your invoices. If you’re not sure how to do this, there are various templates available online that you can use (like this one from Word PDF). When creating your invoice, be sure to include all relevant information such as what needs to be invoiced, how long it took you, the cost, and payment instructions.
3) Keeping track of payments:
Once you’ve sent out your invoices, it’s important to keep track of payments. This can be done using a digital program such as QuickBooks Online or a simple spreadsheet. We recommend setting up a system where payments are automatically deposited into your account so that you don’t have to worry about chasing down late payments.
4) Sending out reminders for outstanding payments:
Even with a system in place, there will inevitably be times when clients forget (or deliberately choose not) to pay their invoices on time. In these cases, it’s important to send out reminders in order to prompt them to make a payment. You can do this by creating an email template and sending it out weekly until the invoice is paid in full.
By following these four steps, you can set up an effective invoicing system that will help ensure timely payments from clients. This will free up your time so that you can focus on running your business instead of chasing down late payments.