How to Send an Invoice and Get Paid Faster in the Philippines

Invoices are the best way forward if you want timely payment for your services in the Philippines. They’re an important part of getting paid faster, so you should make sure you have the right processes in place to send them out promptly and accurately.

In 2024, the Ease of Paying Taxes Act mandated the use of invoices instead of official receipts when documenting all taxable sales and payments in the Philippines. Since then, understanding invoicing has become more important than ever. But it can be tricky if you don’t know where to start.

As with most financial processes, you need clear communication and accurate details. Both will help you get paid on time, but using a reliable tool like QuickBooks can take your invoicing to the next level.

With this guide full of tips and tricks, we’ve got all the latest on how you can get paid faster in the Philippines.

The importance of sending clear and professional invoices

Clarity is the essence of any good invoice. This means making yours easy to read and understand for your client. If your itemized list is clunky and confusing, this could lead to errors when it comes to payment.

One of the first things you need to concentrate on is including accurate details. You want to list a precise rate of pay for the services or products provided, as well as buyer and seller information. You should also add any important details on VAT or tax inclusion. This will help to guarantee you get paid correctly while also avoiding any delays.

Keep in mind that invoices can look different depending on your client and region, so make sure you’re tailoring your document to match any formatting or tax requirements. For example, in the Philippines, your invoice must meet all Bureau of Internal Revenue (BIR) requirements.

QuickBooks is built to take care of all of this for you. It automatically generates your invoices with all the correct details while keeping things as clear as possible. QuickBooks will also make sure your documents are completely compliant based on regulatory standards in the Philippines.

When to send an invoice

Your invoice should be sent when your work has come to an end. This is standard for most businesses, but make sure you double check with your client. Once you’ve provided your goods or services, you can send your invoice to request payment.

A progress invoice can sometimes be sent too. This is when you ask for a percentage of the payment you’re owed while you’re still working on the project. It’s not as common, but can be great for larger projects where more time is needed. This will help to ease the payment schedule from the buyer’s perspective and help to keep cash flow more predictable.

It’s always a good idea to check with the buyer first to negotiate a schedule that works best for both of you. Again, clear communication is the most important element here.

Key elements every invoice should include

Writing an invoice is much easier when you know what to include. To help you out, here’s how to create an invoice with all of the key elements required:

• Date: Add a date to show when the work was completed and when payment is expected.
• Unique invoice number: This is used as an identifier for each new document. For example, your first invoice might be listed at 001, your second one as 002 and so on. Just remember to increase the number by one each time you start a new invoice.
• Buyer and seller details: This includes the name of the person or company for both parties. You should also add contact information, such as the mailing address or email address and phone number.
• List of goods/services: Make sure you clearly list all goods or services provided, with a description of the type of work being billed. This usually looks like a table. Add quantity and price per unit, with a total price at the bottom and don’t forget to include the VAT rate if necessary.
• Payment details: Clearly outline your preferred payment method. Whether that’s through bank transfer, GCash, or PayMaya, make sure you include the relevant details.
• TIN: Businesses and taxpayers in the Philippines will have their own sales tax registration (TIN). As a BIR requirement, make sure you also add this to your invoice.

Getting this information right is the best way to accelerate your payments. If you’re ever unsure on the details, make sure you double check with the buyer. And use invoicing tools, like QuickBooks, to keep everything precise and clear.

How to include payment terms and due dates

Payment terms and due dates are some of the most important elements to include in your invoices. Let’s take a closer look at these details.

Make sure you clearly state your payment terms. Adding “Net 30” to your invoice tells the client that you expect payment within 30 days. If you need payment sooner than that, you could add “due upon receipt”. This will make it clear to the client that you want to be paid immediately.

Just make sure your client is aware of these terms before you add them to your invoice. You don’t want to damage your great reputation—especially when credibility is so important for business in the Philippines. Maintain open communication to make sure you’re both on the same page.

And if you’re worried you might come across a bit too direct for a Filipino business, there are ways to demonstrate flexibility. For example, you could show that you’re open to various payment methods. Having your payment deposited through your bank or GCash account could make things faster and easier for both parties.

Use online invoicing software for faster processing

If you want to speed things up, remove the manual hassle of invoice generation by using online software like QuickBooks. You won’t have to worry about wasting time getting all the details right—with tons of automations, our tools can help with everything.

Online invoicing software automatically creates your invoices for you, adding all the necessary information and in the correct format. Invoice number, client details, branding, total payment due and more, all taken care of with a simple click of a button.

Here are some of the main benefits you’ll find when using QuickBooks for your invoicing needs:

• Get customized 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.

QuickBooks also automatically understands all the local regulations and payment gateways within your area, so you can guarantee compliance without wasting time doing tedious research. And you’ll always get paid through your preferred payment method, whether that’s through bank transfers, PayPal, GCash, or PayMaya.

Best practices for following up on overdue invoices

If you find yourself in the awkward predicament of having to follow up an overdue invoice, don’t worry. We understand how important business relationships are in the Philippines, and maintaining that relationship is essential. So, what should you do?

As previously mentioned, open and honest communication is key. You don’t want to jump to any conclusions when you don’t have all the information yet. For example, having your client miss a payment could be for entirely innocent reasons. Maybe there was a fault in the system or your invoice was missed. Your first port of call should be to contact the client to clear up and solve any simple issues to clear the air.

In the case that the buyer has forgotten to pay you, there’s always one solution you could try—send them a friendly reminder. Keep your tone fair and light where possible, but make the purpose of the reminder clear. You could also set up automated reminders with QuickBooks. That way, if you have multiple overdue invoices, you don’t have to stress about manually chasing the client.

Above all, you should be honest about your payment expectations. Communicating your requirements at the beginning of your agreement is always the best practice, However, sometimes complications happen. As long as you’re transparent, you’ll be able to resolve any issues that occur.

How to set up automated reminders in QuickBooks

Setting up automated reminders in QuickBooks is simple. Here’s a quick step-by-step guide to help you:

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. Customize the email template to your liking.
6. Click Save and Done.

QuickBooks will only send a reminder if it detects any overdue invoices, which will be based on the criteria you set. Remember to be polite in your reminder email and send within a decent time frame to avoid any delays.

Sending invoices as a freelancer

All freelancers send invoices to get paid, so you’ll naturally become pretty proficient with the process. Things do differ slightly, though. Thanks to project scope fluctuations and varying payment schedules, freelancers have to be more flexible. Plus, you may have multiple clients to think about.

Trying to keep track of all the projects you’re working on can be tricky. You have to know who has already been invoiced and which clients are overdue, which puts a lot on your plate. If you find yourself struggling to keep up with tracking and sending invoices, there’s a solution.

QuickBooks can help to make sure your invoices remain professional and always go out on time. So you can focus on your project without worrying about managing late payments or sending follow-ups. And if you have long-term retainer clients, QuickBooks can also take care of recurring invoices, while maintaining local compliance.

Offering multiple payment methods to get paid faster

One of the best ways to get paid faster is by offering multiple payment methods. Allowing clients to pay you through bank transfers, GCash, PayPal, or, in some cases, cash, gives them greater flexibility.

It shows your willingness to work with your client, building a good foundation for your relationship. Pairing this with the accessibility of multiple payment options and you’re onto a winner when it comes to getting paid faster. Fortunately, QuickBooks is set up to support these multiple payment options in the Philippines.

How to set up recurring invoices for regular clients

To set up a recurring invoice, your best bet is to use invoicing software like QuickBooks. This makes it much easier for businesses in the Philippines to manage contracts and long-term clients, and tracks everything for you.

Here’s how to set up recurring invoices in QuickBooks:

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

You can set up multiple recurring invoices this way. It’s super simple and ensures you always get paid on time. This will help to increase business stability, proving to potential investors and stakeholders that you have a reliable and steady cash flow.

How to write an email for sending an invoice?

There are a few things you should keep in mind when writing an email to go alongside your invoice. Make sure you have a clear subject line so your client can easily find the email and knows what to expect. Use a professional but friendly greeting to help build your relationship with the client, and add any important invoice details to the body of the email.

Emphasize your expected due date for payment and remember to thank your client. Most importantly, attach your invoice in a format that’s accessible to the client. If you’re ever stuck, QuickBooks automatically generates email templates that you can easily edit.

Make invoicing a priority for faster payments

Invoicing isn’t just about making sure you get paid. By submitting regular and timely invoices to your client, you’re likely to get your money faster, so, this should be one of your top priorities as a business or freelancer.

Get it right every time with QuickBooks. Our online invoicing software will take care of every step of the invoicing process. From generating personalized, on-brand templates, to chasing clients for overdue payment, QuickBooks makes financial management a breeze.

If you want to spend more time focusing on your projects than calculating VAT, try QuickBooks today.