Whether you are a small-scale business or a bigger one, it goes without saying that you need to send a service invoice to your clients for the professional services that you are offering. A service invoice includes all the elementary information making the invoice well-defined. It is imperative to make your service invoice right so that the payment process for you is hassle-free.
But what if we told you that there is a way to get your service invoices paid quicker? Some of you may think that this sounds too good to be true, but doing so is very much possible in reality! Let’s continue reading further to find out how to create a service invoice that can get you paid quickly.
These 9 Things Should Be Included in a Service Invoice:
1. Add Your Business Logo
Sure, technology these days goes a long way for promoting your business and increasing your sales. But the basics still hold their values which are most likely never to be outrun by technology! One of such basic practices is to include a business logo in your service invoice.
The logo of a company visually represents the company in front of its prospects and clients. Additionally, adding a logo to your invoices can also go a long way to build a good reputation in the market.
As a bonus, adding a logo to your service invoice will also help you stand apart from the competitors that your customer might be considering.
2. Include Contact Details of Your Company
The best way to create a powerful customer service invoice is to add the contact details to the invoice’s header for the next step! Adding the contact details of your business helps the customer identify where the invoice is from. It can also serve as a quick jog for memory as they can recall all the services you have offered them.
The biggest problem with service invoices happen when your consumer holds off your payment due to some reason. In most cases, they prefer giving feedback at times convenient to them.
However, as you add contact details, they won’t have to look for the details to contact you should they have a query about the company’s contact details.
Related: What Is the Best Software for Invoicing?
3. Add Your Client’s Contact Information
Right after you add your Contact details, throw in your client’s contact details underneath the header, right below where you added your business’s contact information.
You should add your client’s contact information the same way you said your business’s contact information. You will want to ensure that your clients’ names, addresses, and contact details.
Experts suggest that it’s always essential to confirm the billing details from your clients before sending the service invoice. While the other inputs are most likely to attain consistency, but billing details are subject to change with every service invoice. Wrong billing details can lead to further complications and unwanted situations.
4. Assign Invoice Number
Experts design most service invoice templates, and there is one thing important that you should notice when browsing through the invoicing templates. The designers of the platform ensure to always include the invoice number for the invoice! The whole point of creating the invoice numbers is to keep track of the payment records of the business.
It is very important to assign a unique invoice number to every invoice sent out to your consumers. You can take help from various software available on the internet to make it easier to assign numbers per your needs.
5. Be Very Precise About the Due Dates
According to Sumup, the main reason to mention a due date on a service invoice is to intensify the importance of the invoice. When you set a due date on the invoice, the deadline on the invoice motivates your clients to pay you within the time allotted. Whereas the due date can be agreed upon between the client and the business, experts suggest that the ideal time is 30 days.
If you have strong business relationships with a client or the conditions of the sale are unique, it would be wise to extend the period in which the due date falls. But you must mention the due dates on the invoice.
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6. Mention All the Services You
The best way to make your service invoice is to ensure that it features a very simple design and explicitly mentions all the provided services. To keep things from getting bland and look more representative, the best idea is to list all the services you have provided.
When you give a list, it becomes easy and simple for clients to see the changes they have incurred from obtaining the services you have provided to them. Furthermore, writing your services in points serves as a breakdown and helps create an understanding of the due amount that is payable.
7. Add the Total Due Amount
Once you have listed all the necessary details mentioned in the guide above, it’s time to move one step closer towards making an effective service invoice.
Once you list all the charges your client needs to pay, ensure that you mention the total sum of money payable. Additionally, it’s always best to ensure that your subtotal value includes all the other costs inclusive and exclusive. By such costs, we mean the taxes and any overhead fees. Also, ensure to mention any credit notes that you issued.
8. Mention the Payment Terms Explicitly
The payment process is where the most complications arise. To steer clear of any unwanted scenarios in the payment process, you should also be clear about the terms.
Mention the payment terms in the footer section of your service invoice. Placing the payment information at the bottom of the invoice makes it harder to make any mistakes.
Additionally, if you are planning any late fees to charge on your overdue invoices, you must mention this policy beforehand to your customers. This way, you will be receiving payments on time, and your clients will also get acquainted with your “late” policy.
Related: Cash Basis Accounting vs. Accrual Basis Accounting
9. Send Service Invoices Proactively
As soon as you have completed the task for the client. The more prompt you are about sending your invoices, your invoices are most likely to turn in quicker.
Avoid giving long deadlines to your clients for payment for your services. Ideally, a business that provides services to its customers should ask for the money right after completing the task.
Nevertheless, if you have another period in mind, ensure that you send the invoices within three days. However, explicitly mention that any delay on the payments after the due date is not acceptable. As you mention such clauses in your invoice, you make a statement and define your working conditions clearly.
Conclusion
Service invoices are one of the essential components of your business, if not the most important. While the standard service invoice will get the job done for you, there is no saying how long it will take for your business partner or client to pay what you’re owed.
As you create a service invoice following all of these tips, we are positive that the days of your business will change significantly. Following these tips will ensure a faster pace of money processing and go a long way in helping your company maintain a stellar reputation. Nevertheless, if you think we have missed something in this article, let us know in the comments section.
