Invoicing Fundamentals

Invoicing your clients can be done in one of several ways. It’s important to inquire how your client wants to be invoiced to ensure that you are invoicing them according to their contract terms. Being non-compliant with their contract invoicing terms could lead to delayed payment.

 

You should also determine how they want to receive their invoices: First Class mail? Email? Online, by entering into their own invoicing system? Or, do they not want to receive invoices at all and prefer to pay using a 3rd Party automated system?

Invoicing Schedule Types

The invoice schedule alternatives are Daily, Weekly, Bi-weekly or Monthly on a specific day. Clients may also prefer to receive invoices on a Fiscal Monthly schedule, such as once a month based on either a 4-week month or a 5-week month, or the client can request to be billed once services/goods are received.

 

Again, it’s very important to find out how often your client is expecting you to invoice them to avoid payment delays.

 

Invoice Formats

Invoices should be created based upon your clients’ needs. Do they require a purchase order to be referenced on their invoices? Do they want a breakdown by project, accounting code, etc.? This is something that should be listed in your contract (especially if a purchase order is required). It should be discussed at the outset to ensure that you deliver the invoice format that your client is expecting. Payment delay could arise from not having your invoices formatted in the correct manner.