For example, if you like to bill immediately upon completion, then always do that so the client knows when to expect the invoice. It’ll also quickly set the timer for the due date of the invoice so you can get paid faster. It’s good to have an invoice numbering system in place so you can prevent assigning the same number to different client invoices.

This is an unchanging fixed price, regardless of how much time or resources it takes to complete the job. Some businesses that may send invoices with flat rates include auto repair businesses, graphic design jobs, or an all-you-can-eat buffet. It’s in your best interest to provide customers with flexibility in the payment methods you accept. A good payment process will help you manage and accept business-to-business (B2B) payments to streamline operations with your vendors and suppliers. It’s a good idea to give your clients as many payment options as possible to make it easy for them.

Add Your Payment Processor

Invoicing is a crucial part of small business accounting because it helps freelancers and entrepreneurs get paid faster by their clients. Invoicing clients and keeping track of the record-keeping process can be intimidating if you’ve never done it before. Some of the most typical billing processes include creating and printing invoices. They also include recording journal entries and accumulating various costs. Invoices3 can slip through the cracks—leaving you with late payments. ACH direct bank transfers can take up to 5-9 business days to process, but they also have the lowest transaction fees.

Explore what you can do with QuickBooks

Or, you can use invoicing software and free invoice templates to simplify the process. Invoicing and payment processing have never been simpler for small businesses. Using software makes it easier for your clients to pay for your products and services. It is suitable for entrepreneurs, small startups, medium-sized companies, and large enterprises.

Every business has unique needs when it comes to invoicing and billing. The following are some of the explicit and implicit costs definition and examples most common types of billing, and their key features. Billing systems that are easy to use will also include reporting and analytics capabilities to give you insights into sales and payment trends.

Key Features to Look for in a Billing System

1. It’s good to have an invoice numbering system in place so you can prevent assigning the same number to different client invoices.
2. For example, project-based businesses may need more granular invoicing details, like billable hours by task or person, than retail businesses.
3. But before you bill your first client, the first thing you need to do is figure out what platform you are going to use to manage your invoices, contracts, and client relationships.
4. Collection agencies collect debts for a fee or percentage of the total amount owed.
5. Snap and upload photos of billable expense receipts with the mobile app.

If you rely on other software programs already, look for an invoicing option that integrates with them. Many of the options on this list integrate with other software via Zapier, intermediary software that users have to set up themselves. Make sure to test those integrations before you commit to one program. Consider the following factors to help determine what invoicing software is right for your small business.

Zoho Invoice

It’s unreasonable to go easy on a client if your business constantly suffers because of their inability to honor their commitments. Legal action may become necessary as a final recourse if all communication and payment recovery attempts prove unsuccessful. As you roll up your sleeves and work on implementing a functional billing system, we recommend adopting these three best practices to boost your invoicing processes further.

But before you bill your first client, the first thing you need to do is figure out what platform you are going to use to manage your invoices, contracts, and client relationships. In this article, we’ll go over everything you need to know about how to bill a client for the first time. From onboarding your first client to getting money deposited in your bank account, we’ll go through it all.