Billing System: What It Is, How to Set Up, and Top Software

Once you start sending out invoices, you’ll want to create a filing system so you can easily reference invoices in the future. You may want to create an invoice folder on your work computer sorted by year and then create a naming convention for your invoices that works for you. Or, you can use invoicing software and free invoice templates to simplify the process. This is great if you want to productize your services and allow your clients to purchase services straight from your website (like an ecommerce store). The wonderful thing about contracts is that they usually only have to be referred to for results to happen.

FAQs on How To Send An Invoice to A Client

Are they open to invoices at any time – or after each project or milestone completion? Know if it’s OK to send agency invoices as work progresses and how they feel about being billed multiple times in a pay cycle. Do not reinvent the wheel, use an invoice generator tool to build your invoices and rely on a library of your services for your pricing.

Make it easy to pay

FreshBooks offers unlimited, customizable invoices with many great invoicing automation. As your business grows, there are great accounting features, including double-entry accounting, journal entries, and bank reconciliation. If that’s more than you need, don’t worry — the smallest FreshBooks plan just focuses on invoicing.

1. However, it’s essential to strike a balance between persistence and patience.
2. A robust billing system prepares you for growth and scalability in the competitive agency landscape.
3. Simply include your name (and business name if you have one), your business address (or your home address), and the usual invoice information.

In the next section, I’ll go over the different types of ways most service providers approach billing their clients. It’s best to send your invoice promptly after your work has been delivered to the client. Though it might seem rude to invoice so quickly, it can help your client remember to pay you, ensuring you’re paid sooner. Send a brief thank-you note for the payment and let them know you appreciate their business. One option is enlisting the services of a factoring or collection agency. These are professional groups that can efficiently handle the debt recovery process, albeit at a cost—typically a percentage of the amount recovered.

However, if you want to take advantage of some of Square’s other features — such as payment processing, payroll, or advanced employee management — there are additional fees. You also have to remember to send out invoices at the right time, double-check that payments have gone through, and monitor due dates, late fees, and any specific invoice terms. As you build a pattern of business with your clients, you’ll start to notice the areas of the contract that are the same each month and which still need consistent updates.

Create a custom invoice template

FreshBooks also has more than 100+ integrations, so you can customize the software to meet your business’s needs. Having the right billing software goes a long way toward creating a smooth billing process. When your processes are efficient, it’s easy to maintain healthy working relationships with your clients. As mentioned earlier, there are many complications in the invoicing process that can make it hard for small businesses and freelancers to stay on top of their billing. Creating invoices, even when using templates, takes time that many people don’t have.

Poor billing practices are some of the most common reasons behind late payments. An invoice filled with errors or unclear components will not only slow down your cash inflow but may also be perceived as sloppy and unprofessional by your client. At the end of the day, you want to establish a payment cycle that promotes a steady flow of money into your business. But it all begins with your contract and your ability to send out invoices promptly. But almost all online payment gateways charge you a small transaction fee and can take anywhere from a few business days to over a week to collect payments.

A platform that can not only handle payments, but can also do things like client onboarding, client reporting, and contract creation — all in a centralized client portal. Normally when you send a simple invoice, you also need to send your client information on how to pay it. Sometimes they may just mail you a check to the address listed on your invoice. But dealing with physical checks may not be ideal, especially if you’re not near your business address to pick up your checks. When you enter a business relationship with a new client, research to ensure they’re legitimate. Visit their website to check out their online presence, get to know their business offerings, and see a directory of employees.

Expect to spend between $0 to $50/month depending on your business needs. Get a free card swiper from Square at no cost when you create a free account. Get insights and advice from over 500 agency leaders on how to run a more efficient and profitable business. After all, if a client is consistently frustrated by the way they need to pay you, they might find a different freelancer. This is the article I wish I had when I started freelancing over 2.5 years ago. how do you calculate the payroll accrual But to get to that feeling, there are a series of steps you need to take.