Once you complete an order or service, it’s time to invoice your client. Invoicing is an essential part of doing business with a customer, and learning to invoice the right way will increase your efficiency in organizing your records and collecting payments on time. Learn what an invoice is, what it does, and how to send it in the most convenient way possible.
What is an invoice?
An invoice is a time-stamped document a seller gives to the buyer to collect payment on goods and services. More than that, they serve as transactional records to keep track of payment history and provide legal protection if contracts are not upheld. In a nutshell, invoices support the following functions:
- Record keeping
- Payment tracking
- Legal protection
- Tax filing
Well-written, legally sound invoices should contain the following elements:
- The word INVOICE clearly stated at the top
- Date of service
- Date of sending the invoice
- Contact name of seller
- Terms and conditions
- Line items of each product or service
- Cost per unit of product or service
- Tax rates
- Total amount owed
Additionally, seasoned organizations include a personalized note on the invoice such as “Pleasure doing business with you,” “Thanks for the business,” or “Happy holidays” to maintain a pleasant business relationship.
How does my business send an invoice?
The three most common ways businesses send invoices to clients are:
1. Mail
You can send your invoice the classic way: by mail. Yes, print out that invoice, tri-fold it, stuff it into the envelope, stamp it, and mail it to your client. That said, the term snail mail exists for a reason, and this process is slow. If you go this route, prepare for a delayed payment.
2. Email
Alternatively, you can email your client. Fast, efficient, and easily accessible, email reigns as the most popular way to send invoices. If you send an invoice by email, convert your invoice to a PDF for security purposes and add the word invoice to the subject line.
3.Invoicing software
Finally, you can send your bill through an invoicing software. If you own a small business, this may be your most convenient route because your customers can easily access payment links, and you can schedule invoices, automate payment reminders, and accept online payments. Plus, you can easily customize the layout with your branded colors and fonts.
Of course, you aren’t limited to just one method—you can invoice your client via mail and email. This way, you double the chances of your client seeing and responding to the invoice as timely as possible.
Tips for managing invoicing challenges
Speaking of time, that’s always the challenge, isn’t it? Getting payments on time can be tough. These pro tips can keep your invoicing process smooth, organized, and reliable.
- Incentivize on-time or early payments.
- Hold the work or stop projects if a client hasn’t paid on time.
- Make the invoice process quick and easy for customers.
- Automate invoicing and make them reoccurring if it’s an ongoing payment process.
- Establish clear payment terms in writing.
- Create closer relationships with your clients.
What if your client is in another country? That brings up a whole slew of other challenges your business might face. Fortunately, Western Union is happy to help with that. Partner with Western Union to bridge the gap between virtual and physical payments to collect cash payments, top up accounts, and pay disbursements to your customers. Use the Western Union International Money Transfer App or use our website to send and receive money internationally. Easily track your transfers online with the tracking number (MTCN) on the website, or track everything on your phone via the money transfer app. Whatever you need moneywise, Western Union is happy to help you through that process.
