The standard is to allow 30 days for payment, although some industries will have shorter or longer periods. Try to give at least 14 days unless otherwise discussed with and agreed to by your client. Consider adding a stipulation to your payment terms that you will charge late fees on unpaid invoices. If you choose to charge late fees on your invoices, be aware of the maximum interest levels you can charge in your state. If a client doesn’t pay you within the agreed-upon timeframe, don’t hesitate to follow up with a polite reminder that the payment is due.
However, if you’re using invoicely, you won’t have to worry about this, since the invoice numbers are auto-generated and tracked. Before you even begin working with a client, it’s important to have a mutual agreement in place. It’s alright to start out with a verbal agreement, especially for urgent projects.
Set up clear expectations with a written contract
While QuickBooks Online does have invoicing tools, it isn’t actually invoicing software. It is full accounting software that comes loaded with features you won’t find in invoicing software — features you might not even need. The lower-priced plans are extremely limited in terms of how many invoices you can send each month.
How to Bill a Client: Professional Ways to Handle the Billing Process
Choosing a new billing software for your company means choosing the system that will work best for your business operations. We’ve emphasized their benefits and drawbacks to make it easier for you to select which option is best for your business. If you’re not very tech-savvy, investing in a platform with a steep learning curve can end up costing you time and money. This could mean you look towards a choice that’s more intuitive and offers basic functions for what you need most. The following are some of the most common types of billing, and their key features.
Understanding Different Management Levels: Roles and Skills
It’s best to involve the client in this so they’re able to pick a plan that meets their financial needs. Likely, you’ll end up with different payment plans for each client in some cases. For instance, you can have it due on receipt or do a Net 10, Net 30, or Net 45, which simply means the client as 10, 30, or 45 days to pay their invoice.
- This also helps you and your client know exactly what is due each month and simplifies billing overall.
- So by waiting 10 days to send your invoice now pushes the possible pay date 40 days from the time the project was completed.
- Using software makes it easier for your clients to pay for your products and services.
- While it’s an uncomfortable position to be in, it’s crucial to navigate it professionally.
Try FreshBooks free to find out if this powerful software meets your business needs. A billing system is a procedure used by a company to charge and invoice clients. It’s sometimes done manually but usually involves a billing software that automates the process of sending invoices and taking payments, as well as tracking expenses and revenue. Invoicing software simplifies how you invoice your customers and get paid. There may also be a few additional bookkeeping and accounting features thrown in, such as expense tracking or time management, but you’ll rarely find anything more advanced than that. Zoho Invoice is free cloud-based invoicing software that boasts such features as customizable templates and support for multiple languages.
All feedback, positive or negative, helps us to improve the way we help small businesses. Invoice2go can be pretty expensive compared to the other options on this list, but it earned its place on this list based on its mobile app. Zoho Invoice also has great customer support and lots of positive customer reviews, so it’s a reliable, secure option for businesses.
How to Bill a Client for the First Time: A Step-by-Step Guide
Sending invoices with PayPal is free with your PayPal account (PayPal accounts are also free to sign up for). Square charges a transaction fee of 2.9% + $0.30 per invoice (or 3.5% + $0.15 for cards on file). There is just one template for invoices, but you can customize corporate income smoothing tied to ceo stocks and options it by changing the colors and adding your logo.