How to send an invoice?

Updated on:  

08 min read

Issuing invoices on time is essential to get faster payments. This requires establishing proper communication channels with customers. ClearOne not only helps in invoicing but also helps in establishing effective communication channels with customers.

How important is it to send an invoice on time?

Sending invoices on time is crucial as it reminds the customers to make timely payments. Customers may forget about payment if invoices are issued late. They may also reject the invoice or deny the service received. So, the best business practice is to send an invoice as soon as the goods are delivered/work is done. Some of the other benefits of issuing invoices on time are:

  • It creates a professional image of the company, which adds to the brand value.
  • Receiving timely payments will have a positive impact on the cash flow of the company.
  • Some customers make repetitive orders. Smaller invoices tend to be paid faster. If they pile up into large amounts, the payment may get delayed as large amounts require certain approvals.

Thus, sending immediate invoices by streamlining the invoicing process is a must of every organisation.

Various modes or channels to send an invoice

There are various ways by which an invoice can be sent to the customers:

  1. Email – This is the fastest and accurate way to send invoices to customers. You just need to confirm the email address once before sending it.
  2. By physical mail (post) – Mail can be sent to the postal address of the customers who do not use emails. When compared to other modes, it is slow and less secure.
  3. Online invoicing – One can also create an online invoice and send it to the customers via a secured link. You can also include a “pay now” button to receive immediate payments.

Checklist for business before it can send an invoice

Below are some of the points to be considered before sending an invoice:

  1. All the required details should be updated in the invoice, such as the nature of goods sold/service provided, rates, taxes, business name, GSTIN, and payment terms. Cross verify the information updated in the invoice is correct.
  2. Send invoice via email, mail, online invoicing software or any other mode. Give a follow-up call to the customers after sending the invoice. 
  3. Share the invoices to the customers in an un-editable format to prevent fraud.
  4. Payment terms should be mentioned very clearly to receive prompt payments.

Time limit to send an invoice to customers

It is best to send an invoice once the goods are sold, or services are provided. But, if a big project is going on, one can send interim invoices as and when partial work is done as per set timelines. One can also send weekly or monthly invoices and set a reminder in the billing software so that you don’t miss out on a payment.

How to send an invoice via email?

Sending an invoice via email is the fastest and easiest way. 

Step 1: Create an invoice – One can create an invoice either using MS word/excel templates or any other invoicing software. It should contain all the required details. 

Step 2: Prepare the invoice for attachment – It is essential to share the invoice with the customers in a non-editable format like PDF.

Step 3: Attach the invoice to the email – Attach the saved PDF invoice to the email. Double-check the details in the invoice before attaching it to the email.

Step 4: Draft the email – Draft the invoice email using the tips below:

  • Subject – It is the most important part of an email. To speed up the process, one can add the required details for payment in the subject line itself. 
  • Body – It should be precise and contain details such as business name, invoice number and due date of payment.

Step 5: Send the invoice- Review all the details in the email and send it out to the correct email address.

Effective ways to follow up after sending an invoice

Below are some of the effective ways to follow up after sending an invoice:

  1. Reminder email before the due date- One can send a reminder email before the due date of payment so that the customer makes payment on time.
  2. If the payment date has already passed, one can send an email stating that the payment is already overdue, kindly process the payment at the earliest to avoid penalty.
  3. One can also make a call to the customers to ask for overdue payments. 

How can ClearOne software help businesses in sending invoices?

ClearOne is an invoicing and billing software that allows one to create, style and share invoices. It takes less than a minute to do all this. Some of the features of using ClearOne software are:

  • It easily collaborates with your customers and CA.
  • It helps to create shareable business cards to create more visibility for your business.
  • You can get invoices classified and arranged for customers.
  • It enables one-click sharing of invoices with customers via whats app, email or any other digital mode.
  • It displays QR codes and payment details for invoices for easy payouts.
  • One can download invoices anytime for various tax filing purposes.