‘I’ is for Invoicing

When your first client comes on board, it’s an exciting time … not only are you officially a company now, but you also are beginning to get paid for what you do!  Invoicing can be a challenging part of bookkeeping, but there are a few steps to follow:

– Secure a Federal Tax ID or EIN
– Prepare a W-9 for your company and share it with your client
– Establish an invoice template
At minimum the template should include your address, date of the invoice, due date, description of services, and amount due.
– Create a system to ensure invoices are sent to clients in a timely manner
– Determine how you’ll define “delinquent” invoices and be prepared to follow up on them.

You have one of two options for record keeping:
1. Manually develop and track invoices using Word and Excel
2. Use a software system like Freshbooks or Quickbooks

I’m a Quickbooks user because that is my accountant’s preference. The software allows me to generate an invoice and has a handy dandy screen that lets me know once an invoice is nearing its due date.

For most clients we’re on net 15. That means that they’re check is due into my hot little hands on our before my invoice turns 15 days old.

Our contract states that if an invoice is deemed delinquent, all work stops. And we stick to that rule. But we also give our clients fair warning. Sometimes “stuff” happens and we think it’s only fair to send reminders, warnings, etc. But also be prepared to stop all work when an invoice is considered delinquent.