Last updated on Apr 10, 2024

What are the best practices for timely invoicing?

Invoicing is a crucial part of any business, especially in corporate accounting. It ensures that you get paid for your services, maintain a positive cash flow, and track your revenue and expenses. However, invoicing can also be a source of frustration and confusion if you don't follow some best practices. In this article, you'll learn how to create and send invoices that are timely, accurate, and professional.

1 Choose the right invoicing software

Choosing the right software is one of the first steps to streamline your invoicing process. There are many options available, so you should look for one that suits your needs and budget. This software should have the ability to customize your invoices with your logo, branding, and terms and conditions. Additionally, it should be able to automate recurring invoices, reminders, and thank-you notes. It should also be able to integrate with your accounting system, payment gateway, and other tools. Lastly, it should be able to generate reports and insights on your invoicing performance.

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Adail Correia dos Santos Jr.

Analista Fiscal e Faturamento - Especialista em ICMS - ICMST - DIFAL - Emissão de Notas Fiscais - Bacharel em Administração de Empresas - Bacharel em Economia - Cursando Tecnólogo em Comércio Exterior - ERP Protheus
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-Domínio de todo processo de faturamento -Conhecimento e acompanhamento da legislação -Automatização e manutenção das tabelas de impostos

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Jansje Strijdom

Senior Bookkeeper @ AutoSmart | Certified Bookkeeper, Payroll Admin
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Create a checklist procedure for invoices. That way each department know what they are responsible for and the timeframe. Be strict on the timeline. Missing the dates should be the exception not the rule. It's hard in the beginning but goes better once everyone gets used to what is expected from them.

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Yankem nguenang Njampoun dief MBA

Highly analytical, result driven accountant skilled at working quickly and accurately under tight deadline. Adapt at all function of accounting, including balancing sheet, processing payments, managing account payables.
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Make sure your staffs are train on how to use the software for preparing of invoices. It should be an automatic invoice that is that the accountant will have to key in just the quantities and the unit prices . This is because every customers do have their basic unit prices according to the good or services. The invoice should portrait the true and fear view of the company activities.

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Hayley Bradshaw

Be A Xero Hero | Xero Training & Consulting for Growing Businesses 🚀 | Mum 💚, Whovian, Gym-bunny & definitely not an accountant
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I would go a step further & say that your accounting system should have the ability to create & send your invoices! Doing financial tasks in one place removes any chance of errors occurring. Xero is an excellent choice

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Gustavo Adolfo Sánchez García

Próximo #PMO Manager | MBA | Analista de Cuentas por Pagar | Investigador| Consultor | Administrativo de Ventas | Auxiliar Administrativo
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Establecer políticas claras de facturación, automatiza el proceso, emite facturas inmediatamente, ofrece múltiples opciones de pago, envía recordatorios, incentiva pagos anticipados, maneja incumplimientos eficazmente, concilia regularmente y mantiene comunicación abierta con clientes.

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2 Set clear payment terms and expectations

It's essential to set clear payment terms and expectations with your clients in order to avoid disputes, late payments, and misunderstandings. Make sure to communicate your payment terms and methods upfront, preferably in a contract or proposal. Indicate the due date, late fees, and interest charges for overdue invoices. Additionally, provide a detailed breakdown of your services, hours, rates, and taxes on each invoice along with your contact information and a reference number.

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3 Invoice promptly and consistently

Invoicing promptly and consistently is a key best practice that can help you to improve your cash flow, reduce your workload, and increase your credibility. To do this, you should invoice as soon as you complete a project or milestone or according to a regular schedule. Additionally, use a consistent format and style for your invoices and keep them organized and numbered. Sending your invoices electronically, preferably in PDF format, is also important, as is requesting a confirmation of receipt. Lastly, don't forget to follow up with clients if you don't receive a payment or response within a reasonable time.

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Hayley Bradshaw

Be A Xero Hero | Xero Training & Consulting for Growing Businesses 🚀 | Mum 💚, Whovian, Gym-bunny & definitely not an accountant
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Something like Xero will cover all of these tips & the mobile app will allow you to invoice as soon as you've left your customer. Adding an online payment option (something like Stripe) will make it very easy for your customers to pay you.

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4 Offer incentives and options

Offering incentives and options to your clients is a fourth best practice that can help encourage prompt payments, build loyalty, and accommodate different preferences. You can offer discounts or rewards for early payments or referrals, accept multiple payment methods such as credit cards, bank transfers, or online platforms, and provide flexible payment plans or instalments for large or long-term projects. Additionally, you may need to negotiate payment terms and conditions; however, it is important not to compromise your value or quality.

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Hayley Bradshaw

Be A Xero Hero | Xero Training & Consulting for Growing Businesses 🚀 | Mum 💚, Whovian, Gym-bunny & definitely not an accountant
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Absolutely! Making it very easy for your customers to pay you is the biggest improvement you can make to your receivables process. I would recommend offering something like Stripe for card payments, bank details for direct payments into your bank & something like GoCardless if you have regular customers with recurring sales. All of these will hook up with Xero for easy bookkeeping

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5 Review and update your invoicing process

It is important to review and update your invoicing process regularly in order to identify and fix any issues, optimize your efficiency, and adapt to changing needs. For instance, track and measure your invoicing metrics such as the average time to get paid, the percentage of late payments, and the number of disputes. Additionally, solicit feedback from your clients and staff on your invoicing process and customer service. Once you have gathered this information, you should implement changes and improvements based on your findings and feedback. Finally, stay informed of the latest invoicing trends, standards, and regulations.

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