Sending Invoices - Fundamentals
- Behdad Karimi Dermeni, CPA
- Dec 12, 2024
- 2 min read
Updated: 2 hours ago
Author: Behdad Karimi, CPA
Editor: Maryam Ajorloo, CPA
Invoices sent to clients should at a minimum contain the following details:
Your company's legal name
Your company's address
Client’s name and address
Invoice number
Invoice date
Itemized list of products or services provided
Total invoice amount
Sales tax amounts, if applicable (See Sales Tax Guide)
Your company's tax account numbers, if applicable (See Sales Tax Guide)
Invoice payment due date
Payment terms
Additional Considerations
Add Late Fees to create a sense of urgency among your clients. It will show that if the invoice isn’t paid by the due date there will be consequences. Make sure that this is discussed upfront and is clearly included in your payment terms.
Use software such as Stripe, PayPal or Square to send invoices. It's easy and will save time in the long run. You can choose to accept payments directly from the invoice for a small cost or choose to collect payments manually (e-transfers) for free.
Offer multiple payment options. E-transfer are free but can cause unneeded friction and increase the number of unpaid invoices. Offer the option to pay by Credit/Debit Card or even via PADs (Pre-Authorized Debits).
Send due date reminders. Square and Stripe both automatically notify clients when an invoice is approaching it's due date.
Did you know that you’re 3x more likely to get paid if you add a company logo to your invoice? That’s because a logo establishes your company as a professional and established brand and differentiates you from the other invoices that your client’s are receiving. It also serves as a good branding opportunity.
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Disclaimer
The content of this blog post is for informational purposes only and does not constitute accounting, tax, business, or legal advice. While ReInvestWealth offers professional accounting and tax advice through paid consultations with a CPA, the information provided here is general in nature and may not be applicable to your specific circumstances.
