Are you tired of dealing with late payments or clients who just don’t want to pay up? It can be frustrating when you’re running your own business, and invoicing is crucial for getting paid on time. But don’t worry, we’ve got you covered! This blog post will show you how to set up an invoicing system that will help you get paid on time, every time. So read on for our top tips!

Time Tracking

As a freelancer, one of the most important things you can do is keep track of your time. This will help you stay organized and efficient, but it will also enable you to bill your clients accurately. 

There are a number of different ways to track your time, but one of the most popular is to use time-tracking software. This type of software allows you to start and stop a timer as you work, and it can even generate reports detailing how you’ve used your time.  QuickBooks Time and Toggl make it easy to track time.

Another option is to simply keep a log of your activities, either in a notebook or computer. Whichever method you choose, be sure to take some time each week to review your time-tracking data. 

Time tracking should not be something you only think about after the fact. If you want to be efficient and effective with your time, you need to track it from the start. There are many ways to do this, but one of the most important is to use a time management tool. This can help you keep track of how you’re spending your time to identify any areas where you need to improve. Once you start using it, you’ll be amazed at how much more organized and productive you can be.

Creating and Sending Invoices

When it comes to running a business, creating and sending invoices is an essential task. Not only does it help to ensure that you get paid for your products or services, but it also helps to keep track of your finances. 

Before we get further into sending invoices, you should NEVER put it in the body of the email.

How to make invoices?

Word and Google Doc

Many people choose to use word processing software or google docs to create their invoices, but you can also use a template. Once you have created your invoice, be sure to save it as a PDF so that it can be easily emailed or printed NEVER in their format.

One potential downside to using Word or Google Docs to invoice is entirely reliant on human error. If you make a mistake when inputting data, whether a typo or an incorrect figure, it can be very difficult to spot and correct. This can obviously cause problems down the line, especially if the mistake is not spotted until after the invoice has been paid. While these problems can be frustrating, they can often be avoided by taking the time to double-check all of the information before sending it off. You can avoid any potential problems and ensure that your invoices are always sent out on time by taking a few extra minutes to ensure accuracy.

Digital Invoices

A digital invoice is an invoice that is created electronically, usually through invoicing software or a bookkeeping program. There are several benefits to using digital invoices, including accuracy, efficiency, and convenience. Because digital invoices are created electronically, they are less likely to contain errors than manual invoices. This can save time and frustration for both businesses and customers. In addition, digital invoices can be sent directly from the invoicing software, which eliminates saving PDFs and then sending emails. This can save time and money. Finally, digital invoices are more convenient for both businesses and customers. Customers can view and pay their invoices online, and companies can track their payments.

What makes up a successful invoice?

When creating a successful invoice, clarity and detail are essential. Be sure to include all of the work you performed, so that the client will not have any questions about what they are paying for. In addition, make sure that your hours and rates are listed on the invoice. If you work on a project basis, you can break down the project into its different components so that the client can see how much each one costs. By taking these simple steps, you can ensure that your invoices are clear and accurate and that your clients will be satisfied with the work you have provided.

It’s important to include clear payment instructions on your invoices so your clients know exactly how to pay you. This will save you time and hassle in the long run, as you won’t have to chase down payments or answer questions about how to pay. Including payment instructions also makes your business look more professional, as it shows that you’re organized and ready to do business. Ultimately, the goal is to make it as easy as possible for your clients to pay you so that you can get paid promptly and without any headaches. You can streamline the invoicing process and get paid more quickly and easily by following these simple tips.

What should you include on the invoice?

The first and most important thing to include on your invoice is your name and contact information. This way, your client knows who to contact if they have any questions about your work. You should also include your clients’ names and contact information so they can easily find your invoice when they’re ready to pay. The date of the invoice, service dates, and a description of the work you did are also essential pieces of information to include. Be sure to include the number of hours you worked, your rate, and the total for each line item. Finally, don’t forget to add a subtotal for the entire invoice.

Invoice Terms

There are a few things that business owners overlook in invoicing. First, be sure to list your invoice terms. For example, if invoices are due 15 days from the invoice date, make sure to state this clearly. This will help ensure that your customers know your payment terms and avoid any confusion down the road. Next, be sure to include the invoice due date on each invoice. This again will help ensure timely payment and avoid any misunderstandings. By having this key information on each invoice, you can help streamline the payment process and avoid any potential issues.

Late Payment Policy

To ensure timely payment, it is essential to include a late payment policy on your invoices. This will let your customers know what to expect if they do not pay their bills on time. For example, you may charge a late fee of $25 after 15 days. While this may seem like a small amount, it can add up quickly if multiple invoices are overdue. In addition, late payments can impact your cash flow and make it challenging to cover your expenses. As a result, it is important to be clear about your late payment policy. This will help ensure that you are paid promptly and avoid any potential financial problems.

Payment options

Next, add Payment options on the invoice. For example, ACH or Credit Card – Pay via this invoice, PayPal Account, Via Check – with the address.

Send your invoice

Sending out your invoice, I love digital invoicing software. With digital software, you can see when your invoice has been opened and viewed. This way, you don’t have to wonder if the client has received the invoice or not. In addition, digital invoicing software typically allows you to set up automatic payment reminders. This can help ensure that you get paid on time without having to chase down clients for payment. Overall, digital invoicing software makes it easier and more efficient to manage your billing process – and that’s something any small business owner can appreciate.

Keeping track of payments

If you’re like most people, when your invoice is sent out into the world to be paid back- it’s only half done. You need a way of keeping track so that money can flow in without any hassle or delay! That brings us up 3rd on our list: making sure payments happen quickly and automatically.

Digital software is a great way to make sure all your invoices are up-to-date and you can easily spot any that might be outstanding. All it takes, depending on what system or program you use for bookkeeping,is creating an invoice in advance with due dates printed right onto them so they’re always accessible at glance!

Using a spreadsheet is an easy way to keep track of your invoices. Make sure you are updating regularly your spreadsheet as soon as possible. Before depositing money into a bank account, make sure that all payments are recorded on this document so you don’t forget!

Send out invoices payment reminders

So what happens if they don’t pay you? Start bugging them for your money. That brings us to our last part of the invoice system, which is sending out payment reminders.

The first step is to make a template that you can send anyone who has been late on their payment. Don’t try to rewrite each time and this could take up very much of your day! Create an invoice-friendly, firm tone with short sentences so they’ll get the message fast – reminding them about when we last spoke or what date their current bill expires if it’s not due already. If there are any late fees I want those mentioned as well alongside our new terms including how much more will be charged.

Hello___________,

This is a friendly reminder that I have not received payment for your invoice dated _________.

Please send payment as soon as you have a chance.

Thank you!

__________________

Schedule time to send reminders

Next, after you make the template and send out email reminders for payment if needed. Check every week so that no one falls through the cracks! Pick Wednesday or another day in your schedule where there are fewer distractions to keep everything on track – it’s important not only for the Calendar date but also for the time allocated just for reminding people about their due dates.

If you send very few invoices then set due dates on your calender and send due payments on roll base.

Take Action!

It’s time to get your finances in order and that means setting up an invoicing system. The perfect way for small businesses like yours, use our checklist!