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The method you use to send your invoices can influence how quickly you get paid. This will impact the overall cash flow of your company. In this guide we take a look at how to send an invoice.
Sending invoices is an important part of business, and means you can get paid for the products or services you provide.
However, the invoicing process can sometimes be daunting, and mistakes can lead to payment delays.
In this guide, we’ll guide you through the invoicing process, giving you valuable insights on the most effective methods, as well as what tools work best for small and medium-sized businesses.
What is an invoice?
An invoice is a document generated by a seller to request payment from a buyer for goods or services.
Invoices are detailed record of the transaction, specifying which products or services were provided. Invoices are also legally binding requests for payments, specifying the amount due and the payment terms.
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What to include in the invoice
You ned to include the following on an invoice:
- The word “invoice”
- A unique invoice number
- Your business information, including organization number
- Contact information for your customer
- The date the invoice was made
- A list of goods or services, including quantity and price
- Tax, if applicable
- Discount, if applicable
- The due date for payment
- Payment terms
When to send an invoice
Typically, you send an invoice after you’ve delivered the goods or services. We recommend sending the invoice immediately. That way you won’t forget and you’ll most likely get paid quicker.
There are also some situations where you can invoice before delivering goods or services, for example if
- you have to buy a lot of materials to perform the service. In that case asking for upfront payment ensures you have the necessary funds.
- a client has a track record of delayed payments. Invoicing in advance means you avoid the risk of your client paying late or not paying at all.
- you and your client have agreed on a discounted price for upfront payment.
How to create invoices
Invoices can be made in several ways. Among the most popular methods are invoice templates and invoicing software.
Invoice templates
Invoice templates are pre-designed layouts, available in, for example, Word, Excel, or PDF. Templates let you quickly and easily create, edit and customise invoices.
Get started with one of our free invoicing templates.
The benefits of invoice templates:
- An easy way to get started with invoicing.
- Templates can be tailored and customised to align with your brand.
- Templates are usually free
The downsides of invoice templates:
- You have to fill out all the fields manually and with word and PDF, you have to calculate tax and discount yourself.
- It’s easy to make mistakes.
- It’s more difficult to manage your invoices, follow up on outstanding payments and make credit notes.
Invoicing software
Invoicing software is made for creating professional invoices, managing payments and keeping track of products and services. With invoicing software, you can set up automation and streamline payment tracking and reporting.
Benefits of invoicing software:
- Automated calculations, recurring invoices and payment reminders.
- Real-time monitoring of payments.
- Efficient record-keeping and easy access to financial data.
Limitations of invoicing software:
- There’s usually a cost associated with invoice software
- It might take more time to set up and learn how to use it.
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How to send invoices
Whether you’re making invoices with software or templates, it’s important to figure out how you’re gonna send them to ensure your clients receive them promptly and that you get paid on time. Here are three options to consider:
1. In the mail
Sending invoices in the mail might seem old-fashioned, but some businesses and clients still prefer this method.
However, keep in mind that the invoice will take longer to reach your customer, you won’t be able to verify if it’s been received, and there’s also the possibility that your client’s address has changed.
If you choose this method, make sure allow ample time for it to be delivered, and consider checking in with your customer to see if they’ve received the invoice.
2. Via email
Email is for many business owners, the preferred method for sending invoices. It’s both quick and eco-friendly. When sending an invoice via email, it’s normal to include a thank-you message in the body of the email, thanking your client for doing business with you. Attach the invoice in PDF format to make it easy for the client to download and view the email.
3. Via invoicing software
Several invoicing software let you send the invoices directly from software. You might send it as an electronic invoice or provide customers with a link that lets them see and pay the invoice online.
What’s the best way to send invoices?
In today’s digital age, many businesses prefer sending via email or via invoicing software, as these methods are cost effective and environmentally friendly.
Recent studies find that electronic invoicing can save up to 60 percent of your costs and decrease your carbon footprint by nearly 67 per cent.
That’s why we recommend using invoicing software, such as the free invoicing software from Conta. Conta offers an intuitive interface and smart features that make it easy to credit invoices and follow up on payments. It’s completely free, which makes it a good fit for small businesses and entrepreneurs.
How to send invoice emails
Sending invoices via email makes the billing process quicker. Here’s a step-by-step guide for how to send an invoice via email:
1. Write a clear subject line
Ensure the subject line clearly conveys the purpose of the email, and includes the invoice number and due date. This prevents the email from being overlooked.
2. Attach the invoice
Include the invoice as an attachment. The attachment should be in a common format, such as PDF, so that your client can easily save and print it.
3. Provide invoice and payment details in the email body
In the body of the email, provide a brief and friendly message. Include essential details like your business name, a greeting, and information about the attached invoice. Make sure to maintain a professional tone.
3 invoice email templates
Standard invoice email
Subject: Invoice [invoice number] for [product/service] due [due date]
Hello, [recipient’s name]
I hope this message finds you well. Please find attached invoice [invoice number] for [product/service]. The payment is due on [due date]. Your prompt attention to this matter is highly appreciated.
If you have any questions or require further clarification, feel free to reach out.
Thank you for your cooperation.
Best regards,
[your name]
The day the payment is due
Subject: Payment due today – Invoice [invoice number]
Hello, [recipient’s name]
I hope this email finds you well. Today is the due date for invoice [invoice number]. Kindly ensure the payment is processed as outlined in the attached invoice.
If you’ve already processed the payment, you can ignore this email. If you have any concerns or if you require assistance, please don’t hesitate to reach out.
Thank you for your attention to this matter.
Best regards,
[your name]
One week after the due date
Subject: Gentle reminder – Payment due for invoice [invoice number]
Hello, [recipient’s name]
I hope this email finds you well. Invoice [invoice number], which was due on [due date] is still unpaid. We understand that there might be some obstacles to paying, so we wanted to reach out.
Please review the attached invoice, and let us know if you have any issues or questions We appreciate your prompt attention to settling this matter within the coming week.
Thank you for your cooperation.
Best regards,
[your name]
Final notice before sending to collections
Subject: Urgent – Final notice for invoice [Invoice Number]
Hello, [recipient’s name]
Despite previous reminders, invoice [Invoice Number] remains unpaid. As a final notice, we urge you to settle this outstanding payment immediately.
Failure to address this matter within the next [amount] days will leave us with no option but to escalate this to our collections department.
We appreciate your immediate attention to this matter.
Best regards,
[your name]
Invoicing mistakes you should avoid
- Forgeting to specifying a due date for payment.
- Forgetting to add all products or services or not describing the products or services.
- Sending invoices late. This might lead to late payments and make your business appear less professional.
- Not double-checking the recipient details and sending the email to the wrong person.
- Not following up on overdue payments, leading to payment delays.
- Not stating payment terms and conditions clearly on the invoice.
- Not informing the client about late payment fees or interest on delayed payments.
- Not double-checking the details on the invoice before sending it.
Now you now everything you need to know about how to create, send and follow up on invoices, including how to avoid the most common mistakes. Best of luck with your invoicing!
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