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6 Best Practices for Small Business Invoicing – Infographics

September 21, 2021September 28, 2021 by ptbg

Every business must pay more attention to invoicing. It is a crucial administrative task and is one way an enterprise can ensure a steady cash flow. Invoicing errors and missed deadlines can negatively impact your cash flow, and companies need to create professional and comprehensive invoices to achieve better financial management.

These are six best practices to improve the invoicing process for small company businesses.

Include All Necessary Details in the Invoice

You must include all details in your invoices to ensure a quick response. You can give your customers enough information to enable them to see the details of your payment process by using a free invoice maker app to help you and help them send their payments quickly and without any hassle. Let your invoice include these:

  • Date of issue (invoice date)
  • Invoice number
  • Billing period
  • Name and billing address of your business
  • Name and address of your customer
  • Terms and due dates for payment
  • Your bank details
  • Contact information

You can also include VAT numbers and other pertinent information, such as client reference numbers or purchase order details.

Provide Clear Descriptions of Each Charge

Invoices must include detailed descriptions of all charges so customers can see the cost breakdown and list of items in an invoice. With this practice, you can reassure your client that your invoices are accurate when they see the cost of their commodities and the shipping and packaging fees. And this, in turn, can increase your chances of both getting paid and updating your small business bookkeeping app on time.

Send Out Invoices as Soon as Possible

To maintain a healthy cash flow, paying on time is important. So, send your invoices to customers as soon after completing a project to allow your customers to review your payment terms and enable them to understand the timeline for payments to avoid penalties for late payments.

Invoices sent early prevent you from forgetting and increase the chances that clients will pay invoices on time.

Continue reading about the other three practices by checking out this infographic.

6 Best Practices for Small Business Invoicing

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