If you've just begun your business, either as a freelancer or as a consultant, you may be required to issue an invoice to your client to get paid. Invoice? What's that? In this post, I'll explain the basics of creating a good invoice, which helps you get paid faster.
What is an invoice? An invoice is a document that you give to your client, detailing the price of a service/ product you have sold to them. Now that we have this out of the way, here are tips that will help you get paid faster. For context, I'm an accountant by day, and I get to receive all kinds of invoices. Sometimes, it's the little things that let you get paid faster!
How do I create an Invoice?
I use https://invoice-generator.com/ to create my invoices. This website is so easy to use and is free! You may check out my video here to see how I create the invoice. You can create an invoice using other software as well, but the above is my preference for beginners.
Invoice Sample
Here is my sample invoice.
My Top Invoicing Tips
1. Professionalism Let your invoice look professional. No matter how your invoice looks, you should still get paid. But a good looking professional invoice adds credibility to your brand. I use an invoice generator to create my invoices. This invoice generator helps you create professional-looking invoices and allows you to edit your invoice easily. It also allows you to add your logo. In addition, it's free to use! (#Notsponsored.)
2. Payment Methods
Be open to various payment methods, be it mobile money, bank, Etc. Caveat: It's okay to state your preferred method of receiving the payment.
3. Email Address
Include Your Email for formal reachability. Your email allows the company to make formal requests and formal notifications.
4. Telephone Contacts.
Include your Phone Number or Mpesa number to get paid faster. Your phone number makes it easier for the company to reach you with ease. Remember, cheques and Direct transfers may require more approvals, which may take a longer time. Therefore, if the company's internal policy allows them to pay you via mobile money, you may be paid faster!
5. Tax Number
Include your tax number. In Kenya, this is your KRA PIN Number. This will come in handy, especially if the amount is above KES 24, OOO. This is because the company paying you may be obliged to withhold taxes (depending on the service they are paying for) and It mostly applies if the amount is more than KES 24,000. Also, it might be the company policy to only deal with suppliers who have a KRA PIN. Therefore, to get paid faster, include your KRA PIN in your invoice the first time around!
6. Bank Details.
Include your bank details. Yes, this sounds simple. But you'd be surprised how often people forget to include this. Below, I've provided the main bank details that you should always include: Bank Name: Bank Branch: Account Name: Account Number: SWIFT Code: NB: If you don't know your SWIFT Code, it's okay. The accounting department can find it, especially if using an online banking system.
7. Include invoice due date- This is very important because it shows the accounting department when you expect to receive your payment. Of course, make sure it in line with the payment terms agreed upon, as the payment terms will always prevail.
8. PDF Issue your invoice in pdf format. It looks more formal.
9. Follow up: Send a friendly reminder to your client contact to remind them that payment is due, or almost due.
Bonus Tip: Share a soft-copy invoice, whenever possible. If not, remember to keep a soft copy version for yourself, so that in case your invoice is lost( I know, this sucks!) you have another version.
Please share all the other tips that work for you and, let's educate each other.
Until next time, keep safe!
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