Tip of the Day #32 - Anatomy of the Effective Invoice
Barbara Steckly
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The Anatomy of An Effective Invoice
Your company invoice, it’s the key to you getting paid on time, in the right way, in the right amount, again and again and again. Thus the formatting and the wording of your invoice is absolutely vital to your business success!
First of all, you are going to want to have listed all the client’s pertinent information. Name, contact info and details about the job or project. These will often auto feed from your accounting software, or specialized invoicing tool providing the data is complete and it’s inherent in the template.
You will also want to outline the services rendered or items purchased, along with the relevant fees and taxes – Use quantities and different personalized descriptions to give clients details about the charges they’ve incurred in clear, easy-to-understand terminology that’s compatible with your business brand.
Your “Terms of Payment” would naturally be very important to include. Indicate not only the date of service and invoicing, but, also, the details on interest and late charges …as well as preferred methods for payment so that the client knows WHEN to pay you and HOW.
Obviously the easier that is, the faster the client is likely to do it. Which is always a good thing!
The “Invoice Number” is a really valuable component, advantageous to both you and your client. It provides you with indispensable tracking information to ensure that you promptly receive payment…leaving your client with a paper trail of you having been paid.
Be sure to use a clear cut numbering system that’s easy to incorporate into your accounting software or invoicing system.
Lastly, your business invoice is an incredibly powerful means of showing appreciation to your client, thereby encouraging customer loyalty. You can even include therein a request for feedback on your products or services.
There can be a designated section for helpful information such as upcoming changes in location or contact details.
A unique and unexpected place to display business announcements such as key events or sales your invoice also doubles as an innovative promotional tool!
Informative, explanatory, inviting! Is your business invoice working effectively for you?
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