How to Write an Invoice for Payment for Services Rendered

How to Write an Invoice for Payment for Services Rendered

If you work as an independent contractor or own a small company that does a special service, then there are possibilities that you will need to know how to write an invoice for the services provided so that you pay To be. The information you include in the invoice varies depending on the specific services you do, but most invoices should include your contact information as well as some other original header information. An invoice should include a list of services provided to your customer within the billing period, with the total amount remaining for you as well.

Starting With the Header

Keep your company’s name at the top. To be professional, you start at the top of your company’s information page. If you do not have a company name, just start with your name. It can be centered or can be all the way to the left.

Treat invoices as a business letter. That’s it, you can have a professional header focused on the top. On the other hand, a simple statement of your business name is also effective.

Add your contact information. Enter your address, phone number, email and any other relevant contact information. Be sure to use your business information, not your personal information.

A fax number can also be relevant.

If you accept payment services like PayPal, be sure to use the email that you have established with that account.

Add a payee’s name or business. As with the business letter, now you go to the person you are billing. If this is a business, use the business address and contact information that the company gave to you.

If this is a person, what information do you have, but preferably use their business contact information?

If you do not have enough information, you may need to contact the person or business, for which you have to get more information. If this is a large company, then you can call in order to actually ask for an invoice to address it.

Include a client account number. Create a unique identification number for each of your repeating customers. Then, make sure this number is included on every invoice you write for this customer. This will allow you to invoice the group by the customer and, if necessary, evaluate their payment history or document the continuous failure to pay.

List a unique invoice number near the top. If you are sending invoices on a regular basis, then it is important that everyone has a unique number so that context and easy to identify. How do you choose a number It’s up to you, but remember that you have to be new to each invoice.

One easy way is to start one at a time and work in your own way. To keep the length of the number equal, you can start with “0000001”.

Another way is to specify the customer number and then use the date. For example, if the customer number is 305 and the date is 2 February 2016, then you can use 305-02022016 as your number. Just make sure that you are clear on what “date” should be. Is it when the service was provided or when did you make the invoice?

Include invoice date. Near the top, enter the label “invoice date”. Next, add the date you’re invoicing. This helps both you and the customer to take care of the time.

You can also include a billing period. The billing period is based on how you set up your invoice.

For example, if you invoice once a month, this means that your billing period is from the beginning of the month to the end of the month, and the services you make during this period will be included on the invoice.

Listing the Service

Make a list of the services you have provided. This step is the meat of the invoice. You are telling your client what you are charging and why you are charging it. It is important not to be surprised at this step, so make sure you are ahead with your customer at all times.

Organize by date. If this invoice is for more than one date, it is easiest to organize it according to the date. Keep the date to the left. Either way, you need to include the date the service was provided.

List the service. Next, you take the amount per hour or per service. You will also need the number of hours or the number of times that the service was performed. Finally, keep the total for the particular service in the charge column on the right.

Create a new line for each type of service.

Fees for other fee list, such as parts relevant to the service.

Add another fee. If you have a delivery fee, you add it at the end, because it is not part of the service. You can also add any other charges as per your requirement. Just make sure they are well-labeled and the client is clear. If there is a sales tax in your area, the tax on the delivery fee can be taxed, so you can make tax on it after you have made a subotol. However, always check with an accountant to make sure that you are taxing properly.

Create a sub-sum. Add all the fees you put on the invoice. Place it in a row under the label “subtotals” in the form of subtotals. It’s subtotal because you still need to add tax.

Add taxes. Next, calculate taxes. Label tax rates as subtotal lower tax rates. If you do not know the tax rate in your area, contact your local sales tax authorities to know the numbers. You can also look online to find sales tax or to contact your accountant.

In some states, you will not need to pay sales tax for services. To know if you need to charge in your area, check your local laws. Apart from this, it can be very influenced by the type of business. For example, if you are a nonprofit then you may not be required to charge sales tax. It may also depend on whether the primary purpose of the sale is service (like on a dentist) or equipment (such as in computer repair).

Typically tax is levied in place of service performance, so if you go to the residence of the customer in a suburb, then you have to use the sales tax of that city. However, again, always check your local laws.

Sales tax is a percentage. To find tax, you multiply sub-totals by percentage expressed as decimal. For example, if your total is $ 50 and the sales tax is 8.25%, you multiply $ 50 to 0.0825 to get 4.125. Round off as needed. The tax here would be $ 4.13.

Add tax. After this, you add the number found in the original subtotal. In the example, you add $ 4.13 to $ 50 to get a total of $ 54.13.

Create total. Lastly, list the total amount you got. To make it clear, place “total” next to it. In addition, it does not hurt to put a box around the total or to mark the final total in bold.

Keep a complete record of your invoice. It is best to keep digital copy and printed copy away. If you have an email, memo or other documents related to the invoice, you should also store those printed copies of the invoice as well as those people.

Giving the Customer Information to Follow Up

Add payment options. Your customer needs to know which methods they can use to make the payment. Do you accept checks? Can the customer pay by credit card, cash or other payment processing system? If the customer can pay for the person to come to your store personally, then tell them. Other options include payment in mailing (either check or credit card number), calling in payment (credit card number) or online payment.

Include a due date. Your customer will need to know when they will have to pay an invoice. Include a fixed date on your invoice prominently. You can also include it more than once. To include this one is near the total amount due, but at the top is also a good option.

Payment should always be on the due date with a result if not completed (for example, interest paid on delayed payments).

You may also be encouraged for initial payments (such as a 2% discount on paying in 10 days), because most small businesses have constant cash flow problems.

You should also discuss whether you have the option of the payment plan or not. You can include information with the letter, or write something like, “If you can not pay your bill simultaneously, call our office to set up a payment plan.”

Invoicing Send. Once you create an invoice, send it to your customer. It will tell your client that they need to pay what you owe. Make sure to name your company’s name outside the envelope.

The invoice should be coordinated with the accounting system. Once an invoice is written, becomes the property of the company (account receivable) and it should be entered properly.

If you use accounting software, you may have the option to make the software an invoice for you. Services like Paypal also have built-in invoicing.

Take it on your invoices. If you do not receive any response from the customer after sending your invoice, try making a phone call to ensure that the invoice was received. Another option is sending a reminder to the customer. It’s important to have a well-defined and standardized collection process so that you can more easily collect on your invoices.

You can also send a reminder via mail. How many people do you send before the “last payment” notice? If you want to allow the customer to pay on time, it is important to repeat the payment plan option.

Once you are ready, you can send a “last payment” notice, so that the customer realizes that you are handing it over to a lawyer or collection agency.

To establish a system, try performing specific collection actions regularly during the period of your collection. For example, try to send the notice after the balance runs after 15 days, 30 days, 45 days, and so on. Each can specify how many days are left till the payment and if the balance is not due, what action will be taken.

Try to send at least one notices by certified mail, so you can know that the customer has received it.

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