It is very important to have a proper invoicing process for contractors and small business owners to generate professional invoices. A good contractor should have skills for handling different projects because many times they have to deal with different billing terms and timelines. Contractors should track and create detailed invoices upon completing the project successfully. They can also get help from the contractor invoice template and online invoicing system.
We are sharing a few guidelines with you for writing an invoice as a contractor:
1. Identify the Document as an Invoice:
You must label the document as an invoice in the header. It will help your clients to identify the document on the very first look. The best way to do that is to add the word “Invoice” in a large, bold font at the top of the page (in the header). The invoice generator will do it for you automatically.
2. Include Your Business Information:
You should add the contact information of your business, including your business logo, your name, address, email address, and phone number.
This information will help your client to recognize your brand by just looking at your invoice. A company name also helps your client know who to pay. Moreover, it leaves a very good impression on your client and shows that you are highly professional.
3. Add the Client’s Contact Details
Include your client’s contact info just below the header. You must ensure that you are adding the correct contact information of your client on an invoice. It will help you and your client to avoid any future disputes at the time of invoicing.
4. Assign a Unique Invoice Number
The invoice numbering system will help you while filling out your invoices. You can simply number them sequentially, like #001, #002, #003…, or use the client’s ID or date. Cloud-based invoicing software will automatically assign unique invoice numbers for each new invoice you fill out, depending on the numbering system you choose.
5. Add Flexible Payment Options:
You must be flexible while giving invoice payment options to your clients. It will help you make good relations with your current clients and help you gain more clients. You can give them flexible options for payment methods, such as payment by check, credit card, direct bank deposit, online payments, or cash. If you introduce all forms of payment to your clients, it will help them to easily pay on time.
6. Include Payment Terms:
It is very important to add the payment terms to your invoice to avoid future disputes. The terms may include, when and how to make payment, billing method, and how many extra charges or late fee charges a client should pay in case of late payments.
7. List Of Services:
Add a detailed list of services that a business provides to its client. It should include the items along with their amount and price.
8. Set Clear Deadlines:
It is very important for you to set clear payment deadlines in your invoice. Add a specific due date for payment, such as, “Payment due on June 1, 2020.” It will help you to avoid any confusion in the future while dealing with your clients or at the time of making payments.
People may ask:
Can I manage Invoicing from my mobile?
It is very easy to create, send, and manage invoices with the Agiled app. You can easily manage invoices on both desktop computers and mobile phones. You can download the mobile app from the Apple Store or Google Play.
Why Does Timely Invoicing Matter?
Issuing timely invoices can help the contractors to record the invoiced amount on their balance sheet as an account receivable. You may not record it as income, but you can add it as an asset on your income statement. It helps you ion record keeping and also saves your time.