Accuracy and details are crucial when invoicing business clients on retainer or for goods or services provided by your company. In fact, there are some attributes that can be added to invoices to prompt early payment or at least reduce the risk of late payments.
Generally, businesses rely on invoicing software to invoice clients. When creating your account, the software will prompt you for company information. Best practices for building invoices are to include the following:
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All of the details on your invoice are necessary for your clients to know why they're being billed. It may also be helpful to include a purchase order or contract number so that their accounts payable department can match the invoice with the agreement on their side.
Payment terms, including when payment is due (Net 30 days, for example), and payment options (such as credit card, check, or ACH) are also necessary so the accounts payable contact understands your payment expectations.
Late fees and incentives for paying early can be a part of your signed contract agreement as well as listed on the invoice.
If your clients are still not paying on time, you can send a friendly collections letter as a reminder. When your clients know why they're being invoiced and how they're expected to pay, they're less likely to delay payments to your business.