1) Submit invoices on time. Many companies have payment cycles, and if you miss the date, you may have to wait much longer for payment.
2) Submit clear, easy-to-read invoices that project a professional image and contain all the information necessary to pay you.
3) Keep detailed records you can show your clients at a moment’s notice if there is any question regarding the products and services you provided.
Action Steps
The best contacts and resources to help you get it done
Create your own invoice
You can easily create your own invoices, but be sure they contain all necessary information, and that the information is presented in an easy-to-read format. This includes
1) An invoice number
2) The date
3) The name and address of the company you are billing
4) The name, address, phone number and email of your company
5) The time period the invoice covers
6) An itemization of the products provided, the work completed, the hours spent (if you are charging by the hour) and the hourly rate if it varies by task or person performing the work
7) An itemization of your reimbursable expenses and receipts for them (Keep a copy.)
8) An itemization of amounts owed by category (labor, products, expenses and any amounts unpaid in previous invoices)
9) The total amount owed
10) When payment is due and to whom checks should be made payable 11) Late payment penalties
I recommend: Open Word and select NEW from the FILE menu. Then select Templates on Office Online and search on “invoice”. There are many other free templates available online such as this Excel template. You can also create an invoice in Filemaker Pro that is connected to your database.
Use accounting software
You may want to buy software that ties your invoices into the rest of your accounting rather than create your own invoice. As your business grows, this is recommended.
I recommend: You can buy Quicken Premier Home & Business, QuickBooks Simple Start or Microsoft Money Home and Business for under $100 to track expenses and create invoices. If you need more forms, in-depth accounting reports, purchase orders, time tracking or inventory features, look into Microsoft Small Business Accounting, QuickBooks Premier and Peachtree Complete Accounting. See CNET for reviews.
Have a plan to collect
If payment is slow in coming, sometimes a simple, polite phone call to the person who contracted with you or to the company’s accounting department can get the ball rolling. But if it becomes clear you may not be paid, be prepared to take action.
I recommend: Consider a legal plan such as that offered by ARAG, which can be much cheaper and less time-consuming than going to small claims court or hiring an attorney on a case-by-case basis. You pay a low monthly fee to provide for limited legal services that may include telephone advice and letters or phone calls to late-paying clients. Often, a letter from an attorney is all it takes. Of course, you may also want to hire a collection agency. BuyerZone.com matches you to multiple collection agencies according to your needs. Also see this list of collection agencies by state.
Tips & Tactics
Helpful advice for making the most of this Guide
1. At the bottom of your invoices, spell out payment terms and penalties. Check with your accountant or attorney for limits to how much you can legally charge for late payments. Here is an example:"Please make all checks payable to [NAME]. Deposits are due immediately. All other invoices are to be paid within 30 days. Client agrees to pay 1.5% per month or the maximum rate allowable by law, whichever is less, of any past due payments."
2. Keep good records of the work you have done, time you have spent (if you are charging by the hour), products you have provided and services you have rendered. Particularly if you are in a service business such as consulting, you should be ready to show your clients proof of the work you have done for them. Some accounting software can help with this, but a spreadsheet is often all you need. You will also need these records in the event of a legal dispute.
3. Every document you send presents an image of your company. Your invoices, just as your stationary and envelopes, should be of a uniform design and contain your logo. See the Work.com Guide to Business Logo Design.
Source: http://www.work.com/Creating-Invoices-That-Get-Paid-573
No comments:
Post a Comment