From the moment you step in the office till you get out if your work comprises of drafting invoices, checking account statements or need to deal with account department pertaining to billing then it is quite obvious to understand how hectic and tiresome it can be. The innate purpose of any organization is to create invoices at par so that when their clients or customers receive it, their first impulse should be to make the payment towards outstanding. However, that is not the case usually, and more often than not the payment is delayed due to some reason.

In this blog post, we bring you the most important points to take care and implement while sending invoices to clients so as to get paid 2x faster. These factors play an important role in ensuring to receive payment at least on time so that it does not harm your business cash flow for easy operation of your company. One has to rely on the best online invoice payments in order to keep the payment rolling in for the growth and success of the business. Following are the critical factors to create invoices to get you paid faster than usual.

Payment Terms

You need to make sure that your payments are absolutely clear and your client agrees to the same. Depending upon the client and business relation, you can also go for a partial advance payment. Also, your invoice payment terms have to clearly mention the penalty charge or late payment fee associated.

Automation

Automation of invoicing and billing process makes E-invoicing a preferred choice as compared to traditional invoicing methods. It simplifies the process and requires fewer resources to manage billing and accounting.

Keep Invoice Simple

List all the details of the job with description and quantity. Try to avoid invoice slang as clients might get confused which will only further delay the payment. It is recommended to personalize your invoice with the business logo so that your clients start getting associated with your brand.

Click here to know: “Pros & Cons Of Using ‘Due Upon Receipt’ Method For Invoice Payment Terms”

Invoice Templates

It is quite obvious that with invoice templates you are going to save lots of time and money. Moreover, you can either download or there are invoicing software and online invoicing app providing in-built invoicing templates that can be selected as per your business need.

Terms Contract

Prerequisite terms contract or draft clears the mutual expectation between two parties. It leaves no confusion about payment, currency, service delivery, etc.

Multiple Payment Option

It is one of the best methods to ensure to get paid earlier by offering multiple payment options to your client. This is helpful to your organization as well, as it leaves lesser chances for them to avoid making the payment on time.

Tracking & Follow-ups

Keeping a track of invoices and payment helps you to list customers who and when they need to be reminded about the payment. This way identifying the slow-paying clients and taking necessary action upon it will ultimately result in improving your cash flow.

Conclusion:

Moon Invoice is a simple, easy and handy invoicing app that lets you generate, manage and track the invoices on the go. Some of the cutting-edge features that will not only save time but also boost productivity and will result in accelerating growth as a freelancer.

Invoicing
Payments
Estimates
Track Time
Expense Tracking
Import/Export & Print
Reports & Insights
Mobile & Sync

Moon Invoice offers you multiple payment options along with multi-currency support. With Moon Invoice you can work from anywhere by downloading apps available for all platforms, i.e, iOS, MacOSX, Android, Windows, and Web.

Recurring Payments Vs Recurring Invoices

Recurring Payments	Recurring Invoices
Recurring payments charge the customer’s credit card account or debit card account on a predetermined schedule for the same amount as preapproved.	Send an invoice to your customer on a regular basis. The client receives the invoice but, money is not paid unless the customer approves.
A business that takes prepayment of money and sells a monthly subscription service and product. Subscription services are excellent examples of this.	A company that provides fixed services with billable hours is an excellent choice for recurring billing. For example law firms and consulting agencies.

Pros and Cons of Recurring Invoices

Pros	Cons
You eliminate the possibility of human error by automating the billing process. If you use a recurring invoice, you will not be concerned about forgetting to charge your customers for the things they ordered.	You must exercise caution while recurring billing to prevent issuing inaccurate pricing. This also holds for price changes that could take place right once an invoice is created.
If you provide your customers with the option for recurring billing, they are more likely to buy products regularly.	It could be difficult to cope with recurring invoices if a transaction fails for any reason.

Net 45	Invoice is due in full within 45 days with no early payment discount offered
2/10 net 45 terms	2% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days
1/15 net 45 terms	1% discount if you pay within 15 days; otherwise full payment of the invoice is due in 45 days
1/10 net 45 terms	1% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days
1/7 net 45 terms	1% discount if you pay within 7 days; otherwise full payment of the invoice is due in 45 days

Category	Net Method vs. Gross Method	Explanation
Calculation Approach	- Applies tax credits first; reduces taxable income before computing tax liability.	- Doesn't apply tax credits; computes taxable income without considering tax credits.
Tax Credit Eligibility	- Allows for greater likelihood of tax credit eligibility due to reduced taxable income.	- Limits tax credit eligibility because taxable income hasn't been reduced yet.
Itemized Deduction Requirement	- Lowers threshold requirement for itemizing deductions due to decreased taxable income.	- Raises threshold requirement for itemizing deductions due to higher taxable income.
Advantages	- Leads to lower taxable income and increases chances of meeting qualifications for other tax benefits.	- Results in higher taxable income compared to net method.
Disadvantages	- May miss opportunity to reduce tax burden if taxpayer doesn't itemize deductions or take advantage of tax credits.	- Increases taxable income and may result in higher overall tax bill.