The question of what to include on a service invoice is one which any service provider should give careful consideration.
A service invoice, after all, can be much more than just a list of numbers. When using your invoice template of choice, you should very carefully think about the vital information you can relay to your client about what exactly their money is being spent on. Ask yourself this simple question: ‘How can I help my client understand the different pieces of work I’ve done for them?’. Here are a few tips and pieces of important information that you can use alongside your invoice template of choice to provide the best service invoice possible.
What is an Invoice?
Contrary to what you might think, an invoice can be much more than simply telling a client how much they owe you for your service. An effective service invoice will allow you to inform your client about exactly what they are spending their money on. This is a great opportunity for you to make a clear and direct line of communication with your client – don’t leave them in any doubt about what work you have been putting towards their project. A good invoice will cater to the specific needs of your client. Knowing the ins and outs of what your client expects from you is therefore very important when constructing your service invoice.
Do I Just Need to Show the Total Cost on My Invoice?
It’s all too easy, when you go to create an invoice, to think of only the most basic function of what an invoice is. But an invoice can tell your client much more than just the total cost of your contribution to their project. The key is to tailor your invoice to the expectations of your client. Some clients may simply be interested in the bottom line to the exclusion of all else, but typically you will find your clients might want a little more detail than that. When you create an invoice, you can use it as an opportunity to inform your client of exactly what your work hours have been spent on. Detailing the various segments and tasks and allowing your client to better understand the details of your work will reduce the possibility of any dispute occurring over the total charge. You might also use your invoice to detail your unbilled working hours – it can go a long way towards satisfying your customer if they are able to see that you’ve charged them nothing for some of the hours you have worked. Ultimately, however, you will need to have a strong understanding of your clients’ needs and expectations when you create an invoice for them; there is no ‘one size fits all’ solution for service invoicing.
Use Time Tracking Software to Accurately Record the Time Spent on Your Invoice.
One of the best and most important tools you can use in helping to make creating a service invoice easy is a piece of time tracking and invoice software. The right software can make accurate time tracking a breeze for you and save your bookkeepers a lot of hassle when it comes to detailed service invoicing. Accurate time tracking allows you to give your clients the assurance that comes with knowing exactly what they are paying for. The clear communication which is facilitated by trustworthy and detailed timekeeping can’t be understated when it comes to making sure your client understands and is satisfied by the work you have done. With that idea of clear communication in mind, let’s look at five key things to include on a service invoice.
5 Things You Should Include on Your Invoice.
1. The Amount You’re Owed
You might think it goes without saying, but at the end of the day the single most important thing you can include on your invoice is the bottom line. While other details and information about the work you’ve done is important, it’s important to make sure that the sum total of what you’re owed is clearly present on the document. Separating charges by tasks, projects or workers can be helpful, but only so long as the total of these charges is also there. Your client certainly wouldn’t be pleased to have to figure out their total charge for themselves.
2. Descriptions of What Tasks You’ve Done
One of the staples of a good commercial invoice template is that it will provide a structure to separate your charges by task or project. This allows you to customise your invoice in order to provide clear details of what the work is that your client will be paying for. You can provide a description of what was entailed in each task and how long those jobs took to complete. There is no need to provide an overwhelming amount of detail, just enough to give your client a good grasp of what you mean by each task. After all, we don’t want this document to turn into a novel – your client will appreciate brief and concise descriptions rather than a full report.
3. Legal Information
So, you’ve dealt with the information your client is interested in knowing, but there’s a little more to invoicing than just that. It’s also important that your service invoice contains all relevant legal information. Some of this information will be of interest to your client – such as any relevant added tax or discount rates you have provided to your customer. Other important information to include, however, is everything one might need from a clerical perspective. Assigning each document an invoice number will aid in creating an organised admin process. Also important is correctly dating the invoice. It’s crucial to know exactly when each invoice you create was sent. It’s also important for your clients to be able to identify which invoices they receive are from you. Therefore, you should make sure to include your businesses name, address and other relevant details; such as payment information, on each and every invoice you send, even if it’s the hundredth one you may have sent to the same client. You should also, quite literally, label the document clearly as an invoice. It’s important to be able to quickly differentiate an invoice from, say, a quote or receipt. Being clear and consistent with your documentation will save your clients the stress and hassle of trying to decipher what the document you’ve sent them is.
4. How to Pay the Invoice
Now your client knows and understands what is being charged to them, who is charging it, and is able to clearly see at a glance that they have received an invoice for these charges. Simple logic now dictates that you had better tell them how to pay! The clearer you can be about your clients’ payment options; the quicker the invoicing and receipting process will be for the both of you. Providing your client with clear payment information, such as the time period in which they are expected to pay, and the method of that payment will prevent any confusion on your clients’ part about when their bills are due. Making sure you communicate well with your customer at this point in the process will, hopefully, save you the pain of having to chase them down for payments.
5. Your Branding
Make sure your businesses logo and branding are colourfully displayed on all of your service invoices. Your clients will appreciate being able to tell immediately that the document they are receiving is from you. Colourful branding will catch their eye and be immediately recognisable – they won’t have to dig through the fine print to work out who the invoice is from. This type of visual association will make things much easier for your customer as well as helping you to continue marketing your brand. There is nothing quite like a little free advertising to keep your business trucking along. All the biggest and best companies understand the value of brand recognition. The more you show your branding to your clients on documents like your service invoice, the more you will stick in their mind.
What Should You do if You’re Not Paid on Time?
Nobody wants to be a nag. Having to chase down late payments from clients is never fun, but there are some ways to help you with this frustration. Keep this thought at the forefront of your mind: you’ve worked hard and deserve to be paid. The first thing to do is to make sure that your client was satisfied with your work by asking for a little feedback from them on your performance. Once you know that they are happy with the job you’ve done, make sure to double check the accuracy of your invoice and to make sure it was sent correctly. It’s important to be absolutely certain that your customer has received the invoice – how else will they know what they owe you? Ultimately, you need to be diligent and persistent (resend that invoice, chase up whoever is in charge of payments) and try to avoid accusations and confrontation.