How to Send an Invoice and Get Paid Faster in Hong Kong

Hong Kong is known for its pragmatism and efficiency when it comes to business relationships and procedures, which means if you want to get paid faster, you need to send a timely invoice.

You should also get into the habit of making the information on your invoice as accurate as possible, and remember to always practice clear communication to avoid any delays.

If you want to up your game when it comes to invoicing, using online software such as QuickBooks is the ideal approach. Designed to take care of all your accounting needs, it can generate precise invoices for local industries within minutes.

Learn more about sending an invoice and getting paid faster in Hong Kong with our handy guide. We’ll look at some of the best practices and key elements to consider so you’ll always receive payment exactly when you need it.

The importance of sending clear and professional invoices

Being clear and concise is key for Hong Kong business communications. Companies value the facts, so you want to avoid being vague or complicated in your approach to invoicing. Don’t use convoluted jargon or fancy formatting—keep things straightforward and simple.

The last thing you want is to experience delays in payment because your client is still trying to figure out what they owe you. When it comes to sending your invoice, make sure you clearly list item descriptions and unit prices, as well as outlining all relevant buyer and seller information.

Keep your corresponding email short and to the point while considering customs or regulations for the Hong Kong region. For example, you must include the company registration number (CRN) to comply with tax laws. You’ll also need to include your Hong Kong Identity Number (HKID) if you’re a sole proprietor.

To simplify the process, use online invoicing software such as QuickBooks. It will automatically generate professional invoices based on local tax regulations and handle all the important details.

When to send an invoice

The best time to send an invoice is when your project has been completed—usually 1-2 weeks after completion.

If you’ve got a month’s worth of work, only bill your client at the end of that month. This is standard for the majority of businesses in Hong Kong, however, some companies may be open to progress invoices.

A progress invoice is when you and your client agree to partial payment. For example, if you’re working on supplying a service in Yuen Long over an extended period, you may want to ask for 50% upfront and the final 50% at the end.

This will keep your cash flow steady while also keeping you motivated to continue a lengthy project. Plus, your client can pay you in more manageable installments instead of a large lump sum.

If you’re ever unsure about when to send your invoice, double check with your client. Clear communication is an important part of maintaining lasting business relationships in Hong Kong. And you’re more likely to get paid faster if you communicate regularly.

Key elements every invoice should include

There are no mandatory invoice formatting requirements in Hong Kong. However, it’s a good idea to keep everything consistent, both for your professional image and to keep compliant with the Inland Revenue Ordinance (IRO).

We suggest you include the following information when writing your invoices:

• Unique invoice number: Used for identification purposes and financial record-keeping. If you’re submitting multiple invoices, this number should be sequential.
• Invoice date: Indicating when the invoice was issued is also important for your records.
• Due date: Want to be paid upon receipt? Happy to wait 30 days? Make your due date expectations clear on your invoice.
• Payment terms: Make it clear if you want the money to go directly to your bank account or digital wallet. Offering multiple options will help you get paid faster.
• Buyer and seller details: This includes company or individual names, business addresses, email addresses, and professional titles.
• CRN/BRN: Every business in Hong Kong should have a CRN or business registration number (BRN). Both are required for tax compliance and must be included on your invoice.
• Itemised list of goods/services: Add detailed descriptions of the goods/services provided, and include the quantity, price per unit, discounts, and total amounts.

Remember to review these details carefully to ensure accuracy. For greater levels of precision, use QuickBooks to generate your invoices automatically. The process will be much smoother and faster, so you can get paid in a more timely manner.

How to include payment terms and due dates

Adding payment terms and due dates to your invoice will clearly indicate your expectations when it comes to payment schedules and timeframes. Of course, you should have already laid these expectations out during your initial conversation with your client, but it’s useful to reiterate terms in your invoice so there’s no room for confusion.

There are two main types of payment terms to consider:

• Adding “due upon receipt” means you want to receive your funds as soon as your client receives your invoice. This is the quickest option with no waiting around.
• Add “Net 30”, “Net 60”, or “Net 90” if you’ve already agreed to a longer payment schedule. This will guarantee payment either 30, 60, or 90 days from issuing your invoice.

A direct but respectful approach is held in high regard in Hong Kong. Including this information will help with building strong relationships as well as getting your funds faster.

Make sure to add multiple payment options where possible. Showing your flexibility will have a positive impact, while also giving your client the chance to send money quickly. ApplePay, Alipay, PayPal, and bank transfers are all valid and give your client several options to choose from.

Use online invoicing software for faster processing

Online software such as QuickBooks makes the entire invoicing processing faster.

You won’t have to worry about manually inputting data every time you complete a project. This makes it more likely you’ll get paid on time and less likely you’ll make invoicing mistakes that could disrupt your cash flow.

If you’re busy juggling multiple clients at a time, using QuickBooks is an obvious choice. Your invoices are generated in a fraction of the time, with accuracy guaranteed. Plus, you don’t have to do any mental arithmetic or check local regulations.

Here are some of the main benefits you’ll experience when using this type of software:

• Get customised and professional invoices to match your brand.
• Automate recurring invoices to save time in the future.
• Track the status of your invoice with ease.
• Set up reminders when payments are overdue instead of wasting time chasing.
• Let software take care of all the tricky and timely calculations so you don’t have to.
• Set up automatic progress invoicing for multiple payments.

And as an added bonus, QuickBooks also accepts various payment methods. Connect your bank account or AliPay with ease to receive payment the way you want to.

Best practices for following up on overdue invoices

The people of Hong Kong care about punctuality and efficiency. They also value professional relationships. Because of this, you’re unlikely to see them falling behind on invoices. However, should the unfortunate situation of an overdue payment occur, there are a couple of things you can do to rectify the issue.

Some best practices include:

• Keep a level head: Remember, there are multiple reasons why you may not have received payment. An error in the system could have easily caused a problem. Or maybe your email went to the wrong inbox. Go into solving the issue with a calm approach and problem-solving mindset.
• Contact your client immediately: Don’t let the issue fester. After all, you still deserve payment and you want to avoid any feelings of resentment. Instead, contact your client directly. A friendly but formal email should do the trick, but if you still don’t hear anything back, give them a call.
• Double check things on your end: Sometimes human error can cause problems—this is especially true if you’re inputting all the data manually. It’s perfectly normal to miss something or forget to send the email yourself, but there is a way to avoid this in the future. Which leads us to our final point.
• Use professional invoicing software: This will help to maintain accuracy on your end, minimising potential challenges.

QuickBooks automatically creates invoices with the most precise and up-to-date information based on local legal requirements. It’s also set up to send automatic reminders for any missed invoices, so your follow ups are taken care of.

How to set up automated reminders in QuickBooks

If you’re tired of chasing clients, let QuickBooks help. Our automated reminders catch any missed payments immediately. That way, you can focus on your core business activities while QuickBooks makes sure you receive what you’re owed.

Follow these steps to set up automated reminders:

1. Go to the Sales tab in your settings.
2. Select Edit in the Reminders section.
3. Turn on Automatic Invoice Reminders and toggle on Reminder 1.
4. Outline when you’d like your reminder to be sent.
5. Customise the email template to your liking.
6. Click Save and Done.

When editing the email template, keep your text short and to the point. Clarity and simplicity are key in Hong Kong, so follow these customs for a fast response. Your email will only be sent when QuickBooks detects an overdue invoice.

Sending invoices as a freelancer

Invoicing is a time-consuming process for freelancers. With so many projects and clients on the go at once, there’s a lot to remember. It’s for this reason setting up automatic invoicing can be beneficial.

Tools like QuickBooks can manage those inconsistent payment schedules, set up recurring invoices for long-term or retainer clients, and completely remove the burden of manually chasing clients for payment.

We’ll help you take care of the invoicing process from start to finish. QuickBooks Hong Kong is also set up for the local IRO tax requirements and regulations, so you’re completely covered from a compliance standpoint.

How to set up recurring invoices for regular clients

If you have regular clients, recurring invoices can be a huge time saver. With a pre-set system in place, there’s no need to worry about remembering to bill your client every month. Instead, you can put more effort into growing your business.

Want to know how this works? Follow these simple steps to set up recurring invoices in QuickBooks:

1. Go to Add Invoice. Select Manage in the top corner and then choose Automation.
2. Click the Recurring invoice option to open the invoice template and then add all the relevant details. This includes naming the invoice, setting up your schedule, and including all the client information and payment methods.
3. Save the template and your recurring invoice should be all sorted.

By using QuickBooks for recurring invoices, your cash flow becomes more secure, leading to better stability for your business.

Offering multiple payment methods to get paid faster

Working with your client is a surefire way to get paid faster, and a big part of this is offering multiple payment options to show your flexibility. When creating your invoice, make it clear that you’re open to accepting payment through a variety of methods. Bank transfers, ApplePay, AliPay, and PayPal are all good options.

Digital wallets are especially good when it comes to faster transactions. Fortunately, QuickBooks can handle a wide variety of payment methods, so you can connect yours with ease.

How to write an email for sending an invoice?

Email etiquette in Hong Kong isn’t too different from the rest of Asia. As we’ve already established, clear communication is important. Try to be direct but respectful and avoid using jargon-heavy language.

Wondering what this looks like? There are some crucial elements you must include, such as:

• A clear subject line to show the purpose of the email.
• A professional and respectful greeting using your client’s formal title.
• A short line of text that references your attached invoice.
• Your expected due date for payment.
• Remember to thank your client and add your personalised email signature.

Add any other information that might be relevant and emphasize your payment terms and due date. Carefully proof your email to catch any mistakes and then attach your invoice in an accessible format that works best for you and your client. If you’re unsure which format your client prefers, send them a message to double check.

Make invoicing a priority for faster payments

When it comes down to it, the best path to faster payments is consistent invoicing. This means making invoicing a priority for your business. Include clear and precise information and make sure you comply with local tax regulations.

To fully streamline the entire invoicing process, use software like QuickBooks. This will remove the time-consuming administration of manually generating invoices and help to improve accuracy. Set up automatic reminders and recurring invoices for long-term financial management, and take advantage of personalised, on-brand templates. With the right tool invoicing couldn’t be easier.

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