Invoicing: terms, delivery & timing

From the same Kevin Potts article we picked up the section that concentrates on terms in your invoice, highlights importance of deliver and timing. This should be very helpful, please read on.

Setting Your Terms

The terms section of an invoice can be as simple or complex as you would like, dependent on your billing standards. You might offer a 1-2% discount for invoices paid within 15 days; similarly, you might penalize late payments. The amount is up to you. If you do set terms beyond 30 days, spell out exactly what the penalty will be for each level of delinquency. 

Delivery

You can send an invoice through e-mail or the post office, and each method has advantages and disadvantages.

Mailed invoices are more professional and are generally recommended over e-mail. The client appreciates a physical bill that can be filed, photocopied and passed along, and has less chance of getting lost. (If you send them a PDF, chances are they are going to print it out and do all these things anyway.) Taking the time to prepare, print and mail the invoice will only reinforce your professional image — especially valuable for new clients.

E-mailed invoices (PDF format is the best) often work better for regular monthly billings, like ongoing creative (similar to an advertising agency) or maintenance fees (like regular web site updates).

Personalize the invoice with a small note. A quick “thank you” is often appropriate and appreciated, and makes your business seem less like a faceless corporate billing machine.

Timing

There is a certain strategy in the timing of an invoice delivery. For down payments, the first invoice should be in the client’s hands immediately after the contract is signed. For milestone points and the final deliverable, invoices should be sent within 48 hours, while your fantastic work is still fresh in their mind. Never send an invoice prematurely, unless it is explicitly agreed upon between you and your client. No one wants to pay for unfinished work.

Instead of attaching invoices to the actual deliverables, exercise courtesy by creating a wholly separate communiqué. Your invoice will be more impressionable (and therefore remembered and acted upon) sent alone rather than buried in other documents and files.

Avoid having your invoice arrive on a Friday. No one wants to see that before heading to the beach, and it will be long forgotten by Monday. If you’re e-mailing the invoice, do it in the morning when the person is more likely to be working, and when they will be more inspired to act on it.

Above all, ensure the information is clear and readable. Your client may appreciate your refined design sensibilities, but the accounts payable department just wants to find the big number at the bottom.

Conclusion

Armed with these tips, you’re set to bill the world in style. Be sure to keep hard copy and PDF backups of every invoice that goes out, even for the two-page web site for your sister-in-law’s hair salon. Invoices are one of the most critical links in the paper-trail chain, so take the time to ensure the information is triple-check perfect. (And if that information arrives in style, even better.)