Cash flow is the lifeblood of a small business, and most cash-flow problems start with invoicing. These small business invoicing tips will help you get paid faster and spend less time chasing money.
Before you send
- Agree terms up front. Confirm prices, deposits and payment terms before work begins. See should you invoice before starting work.
- Use a consistent invoice number. A sequential system keeps records tidy. Read our guide to invoice numbering best practices.
- Be specific. Itemized descriptions reduce questions and disputes.
- Show tax clearly. List tax as a separate line so customers can claim it where applicable.
When you send
- Invoice immediately. The sooner you send, the sooner you're paid.
- Set a clear due date. “Due 24 October” works better than “Net 30” alone. Compare Net 30 vs Net 15.
- Make paying easy. Put bank details or payment options on the invoice. See the best invoice payment methods.
- Send a PDF. It looks professional and opens on any device.
After you send
- Track unpaid invoices. A simple list of invoice number, client, amount and due date is enough. Here's how to track unpaid invoices without spreadsheet chaos.
- Follow up on schedule. A friendly reminder a few days after the due date works for most clients. Use our payment reminder templates.
- Consider late fees or early-payment incentives. Read should you charge late fees.
- Keep every invoice. Store PDFs in one folder per year for bookkeeping and tax time.
Common invoice mistakes to avoid
- Missing or duplicate invoice numbers
- Wrong client name or billing address
- Calculation errors in tax or totals
- No due date or payment instructions
More examples in invoicing mistakes that look amateur. A free invoice generator for small business owners with automatic calculations removes most of these errors before the invoice ever leaves your desk.