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By Sigrun WinklerOn Mar 09, 2019 Resume

Lets face it, the digital space has made invoicing a lot easier than it used to be. Currently, to create an invoice, all you need to do is follow a template. Rest assured, we have you covered there. But, because there are so many different businesses that you might work with, its worthwhile to consider exactly how an invoice works. An invoice is a commercial instrument, a document or put simply, a written verification issued by a seller to a buyer. It includes the list of services or products with their cost. The invoice is given to a buyer or client. An invoice shows that there is an obligation from the customers end to pay for products or provided services.

Invoice terms depend on common practices of your industry, your relationship with the customer, and your cash flow needs. For example, Net 30 means that the invoice is due 30 days after the Invoice Date. Be mindful some businesses may pay later than the stated due date, so you may want to include a buffer to keep your business free from a cash flow gap. Many people overlook it, but the notes section on the invoice can be invaluable. A simple phrase like Thank you for your business will leave a good impression to the customer and increase the chance of an invoice getting paid faster. You can also include Payment Instructions, Warranty Information or even a personalized message in this section to make them feel really special.

Some businesses offer a discount to customers who pay early or on time to help steer them towards payment. Others set up an automated email response to let their customers know as the due date for an invoice approaches or reminds them to pay when the outstanding balance becomes past due. You have to put some thought into your invoicing routine. Simple cobbling together a bill of sale is not the best idea – sure it is easy enough considering everyone has a word processor on their computer. But making smart use of invoicing practices and implementing a few of the latest cloud-based tools will help you get paid on-time, every time.

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