Are you a small business owner? Photographers, graphic designers, contractors, and even bands can operate as a small business. Knowing how much to bill your client, and what items to bill for, isn’t always easy. Download our free small business invoice template to simplify your billing process.
Download a Free Small Business Invoice Template
The process of starting a small business has a lot of moving parts, so it may be tempting to avoid paying attention to the small details of your invoicing process – but this would be a big mistake. As your invoice will be how you get paid, you want to make sure to be as thorough as possible.
You may be confused about what to include because no two businesses are the exact same, therefore no two invoices will be the same. This can even be true for invoices that are created by the same company but are received by different clients (because the goods received and services rendered to different clients will always differ, at least slightly).
That being said, there are some staples that small business owners should always adhere to in order to ensure they send professional invoices.
Your invoice is an extension of your business and should therefore do its best to reflect your business’s brand. Be sure to stay consistent with any brand logos, fonts, colours, or wording within your invoice.
You can create custom invoices by adding your branding to keep your document looking professional.
The header should clearly state what the document is – an invoice. This point may seem obvious but it’s important the recipient knows exactly what the document is as soon as they open it. No one wants to receive a bill, and start questioning what it is and where it came from.
Alongside the header or right underneath it, you should include a unique invoice number. This way you can easily identify and keep track of each invoice, which will help you maintain an organised bank account and stay on top of cash flow. This will be especially useful if you send multiple invoices to the same client.
Your company invoice template needs to include your business’s personal information as well as your recipient’s.
Personal information:
You may need to add the department and the contact information or person’s name if the recipient is dealing with a specific department within your company
Recipient’s Information:
Noting important dates in your invoice will help you and your client stay on the same page about the agreed-upon invoice payment terms. Important dates to include are:
If there are any specific conditions for early or late payments these should also be included in your business invoice.
Create a list of the goods obtained or services rendered. This list should be as detailed as possible to ensure there is no confusion as to what the client is paying for.
You can easily set up a list of your regular service using Google sheets or Google docs and then just copy and paste the relevant information into the invoice template. This will save time when you create invoices for your clients.
For example, instead of a general description such as “installation”, write down exactly what was installed, (software, T.V., air conditioning, etc), where it was installed, how many hours it took, and if there were any additional parts you needed to purchase for the installation.
A small business owner can use their fee schedule to determine how much the client owes. Any discounts offered will apply to the subtotal, after which you apply the taxes. That figure is the grand total. When you create your business’s fee schedule, factor in aspects that affect your bottom line in the same way.
In order to arrive at a fair price that will profit your business while still considering your client’s best interest, you need to develop a pricing strategy. This can be done by obtaining accurate reports that break down your company’s financial statements. These statements include:
Once these reports have been reviewed, you can start looking at external factors such as market conditions, economy pricing, psychological pricing, geographical pricing and more.
Yes. A small business owner can bill for obvious things, such as the number of hours they spend actually working on the client’s project. The service provider can also charge for travel time to and from the work location, compensation for additional workers, and for parts or equipment costs. Intangible items many business owners can work into their fee schedule are:
While these are not items to add to the invoice, these are crucial aspects of the service that factor into their fees. If you have a large number of clients, developing an invoicing schedule is necessary.
There are different methods for how to send your invoice. If you provide short-term, small-scale services, it’s customary to send an invoice at the end of the project directing the client that payment is due upon receipt.
If your projects are larger in scope, breaking them into scheduled invoices is a common practice. Depending on the scope of a project, you can also invoice for a deposit upon the signing of the contract and break down the remaining payments into monthly, bi-monthly, or quarterly payments.
Using online invoicing or invoicing software will make creating and sending professional invoices easier and more efficient. With QuickBooks you will get access to features that will allow you to:
And the list doesn’t stop there. Simply download the free invoice templates and Try QuickBooks invoicing software today to see how it helps simplify your entire billing process and helps you to create and send invoices effortlessly.
Intuit helps put more money in consumers’ and small businesses’ pockets, saving them time by eliminating work, and ensuring they have confidence in every financial decision they make.
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