How to Create Invoices Online Efficiently with a Foolproof Invoicing System


Mohit Sharma

Senior editor

Parul Saxena

Chief editor

Last updated: May 6, 2021

Invoicing is when your business actually gets down to business. An invoice serves as the proof of the goods/services provided by your company to your clients. The right invoice is key to receiving timely payments. Invoices state the legal right of the company to get paid for the delivery of products/services.

With proper invoices, you can prevent delayed payments and present the evidence in case of legal disputes. Not only this, invoices are some of the main documents of verification for an audit. An organized system with all invoices duly in place will make your audit process smoother for the auditors as well as your company. It instills confidence in auditors, which is always good for the image of the company.

Looking for Invoicing Software? Check out SoftwareSuggest’s list of the Invoicing Software solutions.

So, how does one go about creating the perfect invoice? That’s what we are here to demystify. Let’s look at some useful tricks on how to make the perfect invoice for your company. A smart invoicing process coupled with the perfect invoice template will take your company a long way.

Go Ahead with these Simple Invoicing Process:

1. Choose your Invoicing Medium

Yes, this is the first step because once this is taken care of, the rest will easily follow. Invoicing becomes so much easier with billing and invoicing software. You could opt to create your invoices in an online or on-premise billing software.

Both mediums have their pros and cons, and you must choose between the two on the basis of the needs of your organization. Some companies prefer to not be tied down with an on-premises invoicing software and opt for online invoicing systems.

2. Establish Invoice Terms Clearly

Long before the actual invoice is even created, invoice terms have to be established. Do so early on in your relationship. Whether it is when the proposal is made or the contract is created, make your invoice terms quite clear up front.

Use simple but direct language to set out the terms of payment, so that there is no ambiguity and possible misinterpretation of the terms. There should be no confusion in the mind of the client regarding how, when and how much is to be paid. Taking care of this early on will save you the trouble later.

Also, read: 6 Simple Invoicing Tips for Small Businesses

3. Use Professional Invoices

You want your invoices to reflect the values of your business. So, your invoices should look professional and sophisticated. If you have enlisted a good billing software, you can make quality invoices in no time, as they have a range of tasteful invoice templates to choose from.

Your invoice should look classy, without any gaudy colors and fonts. The fonts used should have good readability, and each digit should be crystal clear in order to avoid any misunderstanding. If you create invoices online, keep these guidelines in mind. Keep it as simple as possible, while highlighting important information such as the due date of the payment.

4. Timing

Like all things in business, timing is important for sending out the invoice as well. If you want to get paid on time and in full, better maximize your chances by sending out invoices to your clients at a reasonable time and at the right frequency.

As far as possible, make it a point to not delay your invoices and/or bills. The longer you wait to send out the invoice, the longer it will take for you to receive your payment. If you push for early payment, say, right after completion of a project, you are more likely to receive prompt payment.

5. Set Up Recurring Payments

Be smart about receiving your payments. When you create invoices online, you can set up recurring payments for clients with long-term projects. It’s better and easier than creating a new invoice for the same client every fortnight/month.

It is the norm to ask for a certain percentage of the project value upfront, and the rest in installments over a period of time. For a long-term or recurring project, it is best to set up a system of automated recurring payments from the client’s credit card or bank account. It saves both parties effort and time.

Also, Read: Why You Should Invoice Your Clients Quickly?

6. Follow Up Effectively

Despite putting a robust system in place, the need to follow up with clients for payments is going to arise eventually. Following up multiple times with multiple clients will make you realize how integral it is for obtaining the payment. An aversion to letting go of money is a basic human psychological trait.

Therefore, your clients have to be reminded subtly but firmly that they have to make payments on time. Following up on payments is also an art and requires flexibility. Stick to a reasonable timeline for follow-ups: one week for smaller payments and two weeks for larger ones.

Bottom Line

Create invoices online through a perfect invoicing system which involves much more than just creating the right physical invoice that will reach your client. From using the right medium to set up the right terms for payments, invoicing is an ongoing process where each step is integral to the overall success ie receiving the payments promised by the client.

Invoicing software or billing software can go a long way in making an organization’s invoicing process smoother and more effective. Your ultimate aim is to get the payment from the client, so an invoicing software makes the path leading to that goal an easy one to tread.

Mohit Sharma is a Digital marketing expert with experience in marketing, communications and eCommerce Development. He has worked with many vendors in different categories of products. His interests include digital marketing, eCommerce marketing, and software.

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