Suppose you just completed a project for a client or delivered the products, and now you are waiting for the pay. Perhaps you and the client didn’t decide the payment terms before the project kickstarted. And now you have the awkward task of presenting them with a payment invoice.
Running a small business is no less than an everyday turmoil. It asks for endless dedication and proper management. No matter how small you think your venture is, you have to indulge deep into accounts and maintain a steady income.
What is the purpose of an invoice?
The primary reason for an invoice is to provide a business and its customers with a sales record. An invoice serves a vital purpose in small business accounts. It demonstrates a client’s obligation to pay you for your services.
The following are primary purposes of an invoice:
Bookkeeping – It provides documentation of a company’s financial history. It aims to track all the revenue coming into the business through sales and helps you gauge the profits.
Legal Protection – It helps to protect a small business from false lawsuits.
Tax Records – It provides documentation that confirms the information you list on the tax filings each year.
Tracks Inventory – Sales invoices can help you to track how much inventory you have and predict how much you will require for the future.
How are service invoices different?
Invoicing for services is different from when you invoice for products. For instance, the services do not have an SKU number. Plus, they don’t need inventory tracking because they aren’t something your company holds. Instead, it is something that your business needs.
Consequently, when you write an invoice for a service you provide to the clients, you want to have an area where you can describe your service and perform it. This gives your clients all the information they need to feel confident when they are making a purchase.
Why business needs a service rendered invoice?
An invoice is used to create a sales agreement between the company and the client. Invoices are also a form of billing. Using them keeps you organized and enhances convenience for the clients. Some reasons that your business should go for service rendered invoice template are:
- Service rendered invoice gives you the ability to bill remotely with online invoices
- It provides a service record, so you don’t lose track of rendered services
- It offers a streamlined customer experience
How to identify the best service rendered invoice template?
The best template for a service invoice is the one that generates automatically. Electronic templates are efficient as they are readily customizable and sent digitally on your behalf. You can quickly obtain them by signing for a merchant account with the right payment company.
Some elements that should be present on a template are:
- Due date
- Service charges
- Service description box
- Invoice number
- Logo upload option for custom branding
When to use a service rendered invoice template?
Regardless of the service sector you work in, you deserve to get paid for your diligence. The best way to get paid for your services is to send an invoice to the clients. This is to bill for the services that you provided.
A typical service invoice includes contact information for the company and the client. It also covers all the services provided, payment instructions, and changes made to the account. Developers like Freshbook provide remarkable financial services. You can download its service rendered invoice template in Word and several different applications to get started right away.
A well-written invoice doubles the record of financial information. This is essential when you file your taxes or looking to monitor the growth of your company. Some reasons why you should use a service rendered invoice template are:
- It prevents missing the payments
- It organizes the financial information
- Further, it makes bookkeeping swift and easy
- It sends regular notifications to the clients
- It helps you to stay atop the debtors and due dates
Tips for sending a service rendered invoice
Here are a few tips for sending a service rendered invoice to make sure you receive the payments promptly:
- Negotiate and establish payment terms in written form
- Get upfront payments
- Make the invoice and payment process convenient (by using service rendered invoice templates)
- Automate invoicing
- Incentivize early or on-time invoice payments
- Work on developing a close relationship with the clients
- Use recurring invoices, if required
- Hold the projects or abandon if the client doesn’t pay
What can you do with a service rendered invoice software?
When you jump onto the bandwagon of using an invoice, you enter into a world of opportunities. Following are a bunch of things you can achieve with invoice software:
Automate the workflow
Hit the sack while your software takes charge of complexities. It automates tedious recurring tasks from invoicing the workflows to payment notifications.
Create tailored invoices
It provides complete freedom over how your invoice looks and feels. All you need to perform is to choose a template from the gallery and tailor it so you can design it the way you want.
Improve customer relations
Invoicing software helps customer relations to reach a whole new level. A well-rounded software will also include integrations with CRM and a clients portal to make online payments or track transactions.
Make secure and easy payments.
Invoicing software makes sure that payments are easy and safe with PCI DSS compliance. Plus, you can also collect payments automatically regularly.
Invoices are a must-have for service-based companies. They help them stay on track and watch their finances.
You can get started by sending online invoices to your customers. There is no need to spend hours creating an invoice as we have ready-made templates available in the market.
We recommend you monitor the market closely and look for a service rendered invoice template that works well for your company. Don’t forget to let us know which one was it!
About Ashley Rosa: Ashley Rosa is a freelance writer and blogger. As writing is her passion, she loves to write articles related to the latest trends in technology and sometimes on health-tech. She is crazy about chocolates. You can find her on Twitter: @ashrosa2.