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Friday, July 30, 2021

Getting Paid: How to Create Invoices

Online worker or not, knowing how to create invoices is a necessary freelancer skill. As a freelancer, invoices are important especially if you want to get paid on time. Aside from boosting your professional image, invoices also help you keep track of your finances.

What is an invoice, anyway? It’s a type of document that shows which goods or services have been supplied. Although easily mistaken as one, an invoice is not equivalent to a receipt. A receipt is given as proof that payment has been received. Therefore, whenever you give out an invoice, it should have a matching receipt.

Writing Your Invoice

Truth is, there’s no universal template to writing an invoice. In fact, some prefer to just send a direct email—which works, as well. On the other hand, you may also send it as a document file or in a portable document format. As long as it contains the following information:

  • Your name
  • Service you have provided
  • Time spent
  • Amount owed
  • Payment details

Knowing how to create invoices is just a part of the process. You should also know how to create effective ones. In writing your invoice, include as many details as possible regarding the services you have provided. For example, if you’re paid by the hour, including how many hours you’ve served. As well as your rate per hour.

To make sure that you get your payments on time, try sending your invoices on a set schedule. You may send them weekly, or at the end of each month. By keeping a schedule, your clients can prepare early. Next, don’t forget to keep processing times into consideration when setting a deadline. Larger companies may take some time to pay because they usually follow a rigid payment process. Lastly, Keep banking holidays into account as well. Some banks have a deadline for processing transactions. Usually, transactions that occur after the deadline are processed on the next banking day.

Here is a sample of a bad invoice email:

Hello Dan,

I just wanted to send you a reminder of the services I have provided so far. I have completed the designs you have asked for and spent three-weeks working on it. That would be a total of $2000. Please forward it to my account before Friday.

Thanks.

Information about the services provided is incomplete. As well as the freelancer’s payment details. This type of invoice will need some clarification on the client’s end and may delay payment.

Here’s a better invoice:

Hello Dan,

Here’s the final output of the designs you have asked for. I’ve rendered a total of 48 hours ($20/hr) on this task, for a total of $960.

If no revisions are needed, please send payment to:

John Smith
Bank of Hogwarts
09887-6778-XX22

Invoice emails don’t have to be too formal. However, they should still contain all the necessary information needed.

 

To avoid all the hassle, freelancers can use the invoicing function provided by Jobmofy.com for all its users. The website allows you to keep track of your payments and receipts—all in one place! This is just one of the many awesome features provided by Jobmofy. Sign up now!

Related: Managing Your Personal and Business Finances

 

H Perez
Hope has been writing about various topics since 2012. When she's not writing, she's either building houses in The Sims, watching documentaries about the supernatural and the occult, sorting through her pile of showtunes, or thinking about something witty to say at future parties.

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