Invoices play a major part in just about any business. It is essential for any individual who aims to open and grow a business or offer a service to understand what an invoice is, how it works, and how they should send a paid invoice.
An invoice is defined as an itemized list that records the products and/or services provided to customers. The total amount due, as well as the method of payment for the items or services, is also provided on the document.
Typically, those offering services will be under tight deadlines in which they will need to deliver the service in question. As such, templates exist, such as a painters invoice template, and have been created so users only need to add the specific information and send the invoice within the span of just a few minutes.
Most invoices can be paid out as a one-time payment, or in installments, depending on the agreement. As common as they are, invoices have an enormous impact on a business because they prove that a transaction occurred between a buyer and a seller. A paid invoice is further evidence that the transaction was completed.
Invoices and Their Role
Invoices are used for billing one-off projects, recurring work, physical items, and supplies. They are mostly used to request payment after the completion of work or delivery of a product. This can occur during an ongoing relationship between a person offering services or products and a customer.
The Value of an Invoice
Whenever someone wants to craft an invoice, there are some basic aspects and information that need to be included if the person offering their services wants to present a professional image and increase their chances of getting paid in a timely manner. You might have a client who doesn’t fully understand what it means to get an invoice, too.
The word “Invoice” needs to be on the top of the document, written in a clear manner. A unique number or reference will also need to be provided to link the invoice to the work or service completed.
The name, address, and contact details of the individual or company issuing the invoice need to be featured alongside the name and invoice address of the recipient. Then, the person providing services needs to write a description of what product or service the invoice covers with the date the goods or service was provided or delivered. The date when the invoice was issued will also need to be included, alongside the amount of money that needs to be paid.
The invoice due date needs to be clearly stated, marking the overall deadline when payment needs to be made. Now that we know what the invoice date means, we can move on to preparing one.
How to Prepare an Invoice
There are numerous things that each person in the company offering a service or product needs to include in the invoice to the client.
First, they must be clear and ensure the invoice has a unique reference number. The customer contact details need to be entered correctly. If there is an invoicing error, such as an incorrect address, this will make the invoice invalid and delay payment.
Another important aspect of invoices is the description of the overall service. You need to break down the costs presented on the invoice and describe the number of hours or volume of goods provided.
This information can play an essential role because it clarifies what the invoice is for and can speed up the overall time for settlement. Invoices that do not feature this information will typically get delayed payment until things are cleared up.
Adding the service dates to the invoice can also provide more critical information to the overall receiving company, because this tells the company exactly what they received and on what specific date it was delivered to them.
Sending the Paid Invoice
There are numerous ways in which someone can send a paid invoice. First, they can manually set it up, which can be time-consuming. This means they have to commit time and effort to create a custom-paid invoice from scratch.
Once the paid invoice has been created, those offering services need to just send the invoice to the correct email address or through another communication platform that has been agreed upon with the client. Invoicing through email is one of the quickest ways to deliver it.
Some companies might want to print a hard copy of the paid invoice or download the file for recordkeeping. As such, users must avoid pasting the invoice directly in an email and send it in a specific file format that any device can open, such as a PDF.
Moving Forward With Sending Paid Invoices
Now that you understand some of the most fundamental aspects of an invoice and how to send a paid one, all that is left for those offering services to clients is to create one either manually or through a template–and get paid on time.
By utilizing the latest tools available such as those offered by Invoice Ninja, anyone can create an invoice within minutes, send it with a couple of clicks, and get paid much more quickly than they would have if they had committed hours to creating their own invoices.