4 Things to Include on Every Invoice
When you’re a consultant or freelancer, you depend on clients to pay you on time. It’s just one of the many things to think about when you make the jump to the freelance lifestyle. But with a few small tweaks to your invoices, you can get paid faster, and keep that cashflow running strong. Here are 4 easy but important elements to include on all your invoices.
1. YOUR DETAILS
Always include your name and your company’s name on every invoice, plus important contact info like your address, email address and phone number. Including a mailing address is extra important if your client will be sending you a check—and don’t forget to include an apartment or unit number, if you’ve got one.
2. A DETAILED RUNDOWN OF SERVICES
Provide a clear, detailed summary of the services you completed for the project, as well as your rate. If you decided on a flat project fee, indicate that with a description of your services. If you worked for an hourly rate, list the number of hours you worked on the project, as well as the agreed upon rate per hour. Once you’ve listed all the work you completed as well as the rates, add them together and clearly label the “Total Amount Due”, so your client knows exactly how much moolah to send your way.
3. PREFERRED PAYMENT METHOD
Talk to your client before you create the invoice to see which payment method they prefer, then remind them by including your preferred payment method on the invoice. If your client is paying through PayPal or another money transferring app, make sure you include your correct username. If they’ll be delivering money to your bank account, they’ll need your account and routing numbers, and if it’s a foreign bank they may need a global SWIFT code as well. The more information you include, the easier it will be for your client to pay you quickly.
4. PAYMENT DUE DATE & TERMS
Putting a due date on your invoices is one way to create urgency for a client to pay faster. To give them even more incentive for an on-time payment, add terms like late fees or interest charges if the invoice is not paid on time. When creating your due date and terms, look back at your initial agreement to see if any terms were agreed on before you started the project. If you didn’t agree to payment terms beforehand, a good business standard is a 30-day payment window.