7 Tips to Improve Your Invoicing Process

February 28, 2017

Although they might just be pieces of paper, invoices are one of the most important aspects of your business. Having the right process and format for your invoices is important to help streamline your workflow and to help you get paid for the work you do.

Tips for Your Invoicing Process

1. Legible

The easiest way to achieve this is to have a computer-generated invoice rather than a hand-written one. Choose an easy-to-read font. If you’re unable to provide a computer-generated invoice, be sure to write as clearly as possible to avoid any confusion and misread information.

2. Simple

Don’t put unnecessary information on your invoices. The simpler, the better. Give your customers the information they need to know. Some items to make sure to include are:

• Total Due: If you want to get paid the correct amount, make it clear how much is due.
• Your Company’s Name & Contact Information: Not only is your company’s name important so your customer knows who they’re paying, but it’s also good for branding purposes. Be sure to also include contact information in case your customer has any questions about the invoice.
• Customer’s Name: Include your customer’s information on the invoice. This indicates who you’re expecting payment from. It also personalizes it for them and lets them know they’re the ones that should be receiving the invoice.
• Where to Send Payment: Make it easy for your customers and let them know where to send payment, and maybe even get it to you faster.
• Payment Due Date: Make sure your customers know your terms by putting this information on every invoice.
• Description of Work Completed: Just as you do, your customer gets many bills. To help avoid any questions about work performed, give them the information right on the invoice.
• Invoice Number: An invoice number makes it easier for both you and your customer. If your customer has a question about an invoice, he or she can call and reference the invoice number so the one referenced can be quickly looked up.

3. Design

The layout and design of your invoice can also help keep it simple and easy for your customer to find what they’re looking for quickly. It’s a good idea to make the amount due and payment terms stand out on the invoice as these are two things customers will often refer to first.

4. Envelope

An easy way to ensure that the payment is being sent to the correct place is to include a return envelope with your invoice.

5. Timing

Send your invoices out as early as possible. The longer you wait to send out the invoice, the longer you’re going to wait for payment.
Most customers take 30 days or more to pay invoices after receiving them; however, if you factor your receivables with TCI Business Capital, we’ll pay you same-day.

6. Follow-Up

If you invoice a customer and you’ve not received payment within the terms specified, it’s important to follow-up and give them a friendly reminder. TCI Business Capital provides dedicated collectors to our factoring clients at no extra cost. Our team members are trained to professionally follow-up to ensure payment is collected in a way that keeps the relationship with your customer strong.

7. Records

Make sure to keep track of information internally. It’s good to know when the invoice was sent out, previous payment trends and any follow-up communication that has occurred. If you use a factoring company like TCI Business Capital, we will keep track of these items for you. Our Credit Department watches payment trends closely. If there is any change, your relationship manager will inform you promptly.

How Is Your Current Invoicing Process?

Are you getting paid on time?

Is it easy for you to look up an invoice and see the status?

If you answered no to either question or want other assistance with your invoicing process and collecting payments from customers, contact a financial representative at TCI Business Capital. We’ve helped customers since 1994 get paid same-day on their invoices, streamline their invoicing process and collect from slow-paying customers.

About TCI Business Capital

TCI Business Capital is an invoice factoring company serving businesses across the United States. For more information on factoring, call (800) 707-4845 for a free, no-obligation consultation and quote.