Fact: 49% of invoices have an error on them and will never get paid.
Question: How important is it to you to get your invoices paid in full and on time? My guess is that it’s very important.
Discover how to write a simple invoice with this easy step-by-step guide. Doing this will improve cash flow and reduce financial stress.
This step-by-step guide to a simple invoice is proven…
This is the process that I followed in my small business to write an invoice simply, clearly and easily.
I wanted our customers to be able to quickly find the information they needed. The more hold-ups there are, the longer it takes customers to pay.
Simple invoices with all the information customers needed meant that there were no hold-ups. Customers paid by the due date. It worked so well that we always had strong cash-flow. Strong cash flow meant that my business was always self-funded. There was never a need to borrow money or have an overdraft even when I opened offices 2 and 3.
By writing simple and correct invoices, we minimised queries on invoices. After all, queries are a legitimate way to delay payment.
I know lots of quick and easy tips on how to get invoices paid on time and improve cash flow. Learning how to write a simple invoice that’s perfect is a key place to start.
How to write a simple invoice that is correct…
“If you don’t have time to do it right, when will you have time to do it over?” John Wooden
Writing simple invoices, using this step-by-step guide, will save you lots of time and frustration:
- You won’t have to chase up customers for payment of overdue invoices
- You won’t have to stop what you’re doing to resolve queries on invoices
- You’ll have more time to grow your business
- When customers pay on time, you’ll have better cash flow and more money in the bank.
- Your customers will be impressed by your efficiency
- Fewer queries will improve relationships with your customers.
The list of positives is endless so let’s get started…
Simple or not so simple?
I’ve seen lots of ‘how to write an invoice’ templates online. They might have been simple, but none seemed to include all the important aspects that avoid queries and encourage customers to pay on time.
A query on an invoice is a legitimate excuse for your customer not to pay. Getting invoices clear and correct is key.
To make it easy to follow, I’ve split the invoice into 3 sections. When you are learning how to write a simple invoice, it’s good to take it slowly.
You should end up with a simple, clear invoice that looks similar to this.
How to write a simple invoice Part #1
Top (green) section of the invoice: Enter all the basic details:
- The correct address
- The right person
- Clearly show the goods you have shipped or the services you have provided
How to write a simple invoice Part #2
Middle (blue) section: record what you’ve provided and what your customer owes you…
- What you delivered and how much you are charging
- The taxes you are obliged to collect on behalf
- The total your customer owes you
How to write a simple invoice Part #3
End (orange) section: focus on getting your invoice paid quickly
- Your trading terms
- The payment due date
- Your contact details
- Payment methods and details
When you are finished, you can remove any unwanted grid lines and add colours to suit your business.
How to write a simple invoice – your to-do list
Follow my step-by-step guide and see how easy it is to write an invoice that’s perfect.
You’ll be creating a simple invoice that is clear, correct and gets paid faster. It’s a great collection strategy so you’ll avoid overdue invoices and improve your cash flow.
49% of all invoices don’t get paid because of an error? Unfortunately, it’s true!
Even a tiny error gives your customer a legitimate excuse to hang on to their money.
To your business success!