Does your invoicing system need an overhaul? How can you encourage clients to pay on time? It goes without saying that getting money in your pocket faster is always a good thing, so here are 7 tips for streamlining your invoicing process:
1. Make Technology Work Hard For You
Adding up timesheets and collating costs such as sub-contractors can make invoicing a time-consuming process. Moving to an automated cloud-based invoice system is the biggest improvement you could make to your invoicing process. In fact, ditching the spreadsheets has meant that Cymon Allfrey Architects cut invoicing time by 75% with a total saving of 60 admin hours a month.
2. Add Descriptions
For clients, an architect’s invoice can often be difficult to decipher. Adding short descriptions in plain language (no industry jargon!) of exactly what you did for each item on the invoice can help ease the confusion and reduce the likelihood of clients questioning your fee.
3. Keep Templates Clean and Simple
Think of your invoice like a piece of Scandinavian furniture - clean, modern and simple. The easier your invoice is to read and comprehend, the higher the chances your client will pay on time. Choose type that is bold and easy to read, and use at least a 12pt font.
4. Use Progress Payments
Billing large jobs as progress payments helps both you and your client manage cashflow. Consider taking a deposit at the beginning of a job, then asking for monthly or bi-monthly payments until the end of a project. Architecture project management software such as WorkflowMax makes this process super easy to track and manage.
5. Easy Payment Process
The easier you make it for the client to pay your invoice, more likely it is that you’ll be paid promptly and correctly.
- Make your bank account number for direct deposit clearly visible.
- Include a link to a payment gateway for credit card or online payment (if required).
- Have an accurate address for mailing cheques.
- Clearly state payment terms and conditions, including due date and what will happen if the invoice is late.
6. Don’t Forget the Details
It should go without saying, but you’d be surprised how often business owners leave off vital information on their invoices! Include:
- Your name, business name and contact details
- Client’s name, company name and contact details
- Invoice number or other means of cataloguing your invoices
- Itemised list of expenses
- Total amount due
- Details of your terms and conditions of payments
- Due date for payments
- Means of payment
- Number of payments completed/remaining (if billing in stages)
The advantage, of course, of using invoicing software, is that all these fields are automatically populated!
7. Be Friendly
Let’s face it, no one really likes paying invoices, even if you’re happy with the job rendered. Even though an invoice is a business document, that doesn’t mean you can’t use it to show your client that you’re grateful for their business. A simple “thank you!” on the bottom of their invoice will help you instantly come across as friendly.
Use these tips to create clean and professional documents while avoiding some of the more common mistakes architects make while delivering their invoices!