Set Up Your Invoicing System
- Choose invoicing software (e.g., QuickBooks, FreshBooks, Wave, or Zoho Invoice).
- Create a professional invoice template with:
- Your business name/logo, contact info
- Client’s name/address
- Invoice number (unique and sequential)
- Date + due date (e.g., “Net 15” or “Due upon receipt”)
- Include payment terms (late fees, discounts for early payment).
Send Invoices Promptly & Accurately
- Detail services/products clearly:
- Description, quantity, rate, subtotal
- Taxes/fees (if applicable)
- Attach supporting documents (contracts, timesheets, receipts).
- Send invoices via email (or client portal) and confirm receipt.
Offer Multiple Payment Options
- Accept online payments:
- Bank transfers (ACH)
- Digital wallets (Venmo, Cash App for informal businesses)
- List payment instructions clearly on the invoice (e.g., “Pay online via [link]”).
Track Payments & Follow Up
- Record payments immediately in your accounting software.
- Set up reminders for overdue invoices (e.g., automated emails at 7/15/30 days late).
- Follow up politely with a call/email if payment is delayed.
Reconcile & Review
- Match payments to invoices weekly to avoid discrepancies.
- Track cash flow to identify late-paying clients or seasonal trends.
- Update records for taxes (e.g., mark invoices as paid, track write-offs).
Handle Late Payments Professionally
- Send a late notice with updated totals (include late fees if stated in terms).
- Offer payment plans if a client struggles to pay (get agreements in writing).
- Escalate if needed (collections agency or small claims court for persistent non-payment).
Optimize Your Process
- Go paperless: Use e-signatures (DocuSign) and digital invoices.
- Automate recurring invoices for retainers/subscriptions.
- Review client payment history annually and adjust terms for repeat offenders.
Bonus Tips
- Security: Use encrypted payment links and avoid sharing bank details over email.
- Tax-ready: Add tax IDs or notes for deductible expenses (e.g., “50% deductible for client”).
- Backup: Save copies of all invoices (cloud + local storage).