A quick phone call to that client often results in an apology and prompt payment. We’ve all been frustrated by that client who just doesn’t pay, but there are also instances where a client simply forgets. MISTAKE 5: Not following up if the payment is not received. This removes any ambiguity, which the client will appreciate. It’s best for you to date the invoice, and state a specific date when payment is due. They may have accounting processes in place in which payments are processed bi-weekly or monthly. Or some templates use “due upon receipt,” which is not fair to the client. MISTAKE 4: Not specifying a due date.įor instance, some invoices use language such as “Net 15,” which means 15 days after receipt of the invoice, which is not well understood by everyone in business. You need to know the individual who is responsible for paying invoices, and be able to add their name to the invoice as well as the company name. A general address like “XYZ Construction” will be inefficient. Invoice templates need to give you the ability to address the invoice to a specific person in the organization. MISTAKE 3: Incorrectly addressing the invoice. Clients appreciate knowing what the expense will be covering, particularly if the person who makes the payment is not the individual you work with in the organization. Invoice templates should provide ample room for adding line items like “client consultation,” “website redesign,” and “pool flooring blog post,” for instance. MISTAKE 2: Not providing enough detail in the summary of work. And if you use an online invoice system, there should be a way to know that the invoice was sent, whether the client received it, and whether it has been paid. Either way, don’t wait for the client to ask for an invoice. If you’ve negotiated a deposit, send an invoice before you start work for the client, and then a second invoice when the work is complete. It’s important to promptly send the invoice when the work is complete. MISTAKE 1: Waiting to send the invoice, or forgetting to send it. We asked them what their top mistakes were and how they would avoid it. By knowing what they are, you can modify your template to ensure you aren’t making these mistakes, and repeating them each time you create an invoice.Īt Bonsai, we’ve worked with 500,000+ business owners and most of them are in the top 1% category in terms of earnings. However, there are still some pitfalls that are important to avoid when using an invoice template. It’s true that using an invoice template can speed up your invoicing process and help ensure you have quality invoices every time you send one to a client. 7 common mistakes to avoid while using invoice templates And you certainly can’t expect to receive a late fee without clearly stating that there will be an additional charge for delayed payment. You can’t assume that the customer will pay you without sending an invoice. If payment isn’t received, a follow-up invoice will include the late fee as part of the total cost. After all, you can include notification of a late fee, which can be a flat rate or a percentage of the project cost. It notifies the customer that it’s time to make payment, and it also notifies them what happens if they don’t pay. If you're self-employed, you can take advantage of self employment tax deductions to lower your taxable income and increase your profits. It’s important as part of running your business, especially at tax time. It establishes a record of work completed and payments rendered. It also creates what’s called an account receivable, which is part of the bookkeeping and accounting of your business. It’s true that it establishes an obligation on the part of the client to pay you for services it’s a verification of the agreement that you have reached when bidding on the work or agreeing to a contract. What is an invoice used for? An invoice is much more than a document that tells the client it's time to be paid. Provide clarity to your client, communicating the work completed and the payment due for that work.Add your business brand to the invoice.Create a numbering system that allows you to track what’s been paid and what hasn’t been paid.Save you time by creating a reusable document.Simply make a copy of the template, enter all the information, download the document, and send it through-job done. While invoicing might overwhelm many freelancers and small business owners, free invoice templates offer a quick fix for your worries.Īn invoice template works as a pre-made outline you can adapt depending on the project without going through the trouble of starting from scratch. It’s a formal way of asking your clients to complete the payments within the specified deadline. An invoice is a document containing payment details that obligates a client to process your fees for your services.
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