Even when everything operates more or less as normal, you face a lot of work as a business owner. You must deal with staffing, marketing, and ensuring you pay your quarterly taxes. In the last year or so, supply chain disruptions added to the list of worries on most business owners’ plates.
It’s easy for anyone to see how making an invoice for every customer might fall off your radar. Yet, making and sending invoices is crucial for your business. Not clear on how prompt invoicing matters?
Keep reading for some reasons why invoices matter, as well as some invoice tips.
How to Make an Invoice
For some small business owners and freelancers in particular, creating an invoice is often new ground. In fact, there is a half-decent chance you’ve never even seen an invoice. So, how do you make one?
The good news is that you can find an invoice maker online. Most will let you customize the invoices for your brand with your logo and related images, such as a header.
With the how out of the way, let’s move on to some of the reasons why invoices are important.
An invoice serves as a record for you and the customer of their purchase. It tells you both what they bought, when they bought, and how much you charged for it.
More than one business faced a cash crunch when old invoices went unpaid. Sending out the invoices creates a record, but it also lets you set up automated reminders for yourself or your customers that the due date arrived on invoices. That can help prompt payments and keep your cash flow positive.
Invoices customized for your brand project professionalism on your part. You took the time to create an invoice for your business. If it included key business information, such as your address and your logo, it also signals the customer that the invoice is legitimate.
Copies of the invoice and the reminders sent can serve a legal purpose as well. If the customer doesn’t pay, they become evidence of the transaction and the failure of payment.
Those invoices you issue can also serve as a data source for future marketing. You can analyze that information for things like purchase patterns, the popularity of offerings, and adjust your marketing. You may focus on lower-performing products or double-down on high-performing services.
Making an Invoice and You
Making an invoice is not as exciting as making a sale, but it’s just as important for lots of reasons. For one, it helps keep money coming in the door by encouraging prompt payment. It’s an important record-keeping activity for legal and even tax purposes.
It helps you project a professional air to your customer when you customize your invoices for your brand. Invoices also prove a useful source of marketing data down the road.
Ready for more tips on business finance? Check out some more of the posts over in our Business section.