Getting on-time payment is the backbone of the company. A proper cash flow is no less than a boon for the business, whether a small business or a large enterprise.
But to achieve the same, one document plays an important role, and that document is the invoice. It is a financial document that a vendor or a business shares with the client or a company to urge payment.
Working as a small business owner or a freelancer, you must know how to invoice a company. If you don’t know, no worries. Here, we will provide guidance for you to craft the best invoice.
How to Share an Invoice to the Company?
Sending an invoice is not rocket science, but it needs to be handled properly. A genuine invoice is the best medicine to maintain the financial health of your company. So, do you want your company to be financially sound with on-time payments? Follow the below instructions to have the best approach to sending an invoice to the company.
1. Utilize the Right Invoice Template
When you initiate your invoicing process, the first step is to select the right template. These in-built designs will save you time and create an invoice. Moon Invoice offers 66+ customizable templates. A user can create an invoice in any form – Word, Excel, PDF, Sheets, and Docs.
Choosing the perfect template is highly favorable for your business. These templates simplify the whole work by offering a ready-to-use format.
2. Include Invoice Details
Once you choose the template, add the invoice date, invoice number, and due date. These details are crucial. Invoice numbers are very helpful in tracking invoices.
3. Adding Products or Services
You must add a separate line item to each product or service. This description is helpful in getting an idea of the product or service. It’s not necessary to include deep details about your product, but still, important information should be there. Along with it, mention the correct info related to quantity, price, and applicable taxes.
4. Company & Customer Details
Any invoice is invaluable without proper details related to the company (that issues an invoice) and the customer (for whom the invoice has been issued). Additionally, you must ensure that you are mentioning the correct details. The core details are name, address and contact number.
5. Terms and Conditions
Every company has different payment policies. When you issue an invoice, you must include the payment terms. This helps to maintain transparency between you and the customer.
6. Including Total Amount
Mentioning the total amount is another crucial point when you invoice for business. Templates from Moon Invoice help calculate the total amount automatically. Once you enter the figure, you will get the total amount. Mind it, you must highlight this total amount.
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How to Issue an Invoice to the Company as an Individual?
When you are an entrepreneur or handling your business as an individual, you need to handle invoicing with some tricks. This helps you to make your billing process smoother and also helps to make a professional image. When it comes to how to bill a company as an individual, follow the below-listed approach.
1. Keep the Company’s Billing Cycle in Mind
Every company has a different set of billing cycles. Thus, the duration of making the payment may vary from company to company. For entrepreneurs, it’s crucial to keep an eye on the billing cycle and send invoices accordingly. This prevents you from getting trapped into unsystematic processes that lead to other issues.
2. Add Professional Header
The first impression is the last. When your client sees an invoice, the header section is the first field to get attention. So it’s quite important to keep your header part highly professional looking and inclusive of all the details. It must cover your name or your business name, address, and contact details. A business logo of your business is also a plus point.
3. Always take Advantage of Professional Template
A professional template can upgrade your invoicing. It helps you craft professional invoices that showcase every detail in a well-structured manner. Choose Moon Invoice, the right invoicing software to avail of a professional template.
4. Follow up Invoices
Following up on invoices is a good trick to maintain a proper cash flow. Keep track of unpaid invoices at the proper intervals.
5. Send the Invoice to the Right Party
You must have a clear idea against whom you are sending the invoice. Usually, big enterprises have a separate team or department to handle the payment process. So, you must have the proper idea of the same.
How to Send an Invoice to the Company for a Freelance Project?
There is a bit of a different concept when you invoice a company as a freelancer. Usually, freelancer work is contract-based and often based on a short-term duration. Follow the below-listed approach when you send an invoice to a company for your freelance project.
1. Including Contact Information
Freelancers also need to mention their contact information while issuing invoices. It is quite important because it makes it possible for the company to contact you in case of any doubt.
2. Invoice Details
Similar to invoicing to a company as an individual, you must also include the invoice details when you invoice as a freelancer. It covers invoice date, number, date, and due date. A standard payment term is Net 30 days.
3. Include Project Duration and Line Items
You must conclude the duration if you are working on an hourly basis. Also, add the details of line items reflecting the offered products or services details. Including quantity, unit cost, and applicable tax is important.
4. Payment Method You Accept
Let your client or company have a clear picture of the payment methods you accept. So don’t forget to conclude the payment options in an invoice when it comes to how to bill a company.
5. Additional Payment Terms and Instructions
If you have any specific terms related to your freelancer’s work, you must include them in an invoice. Remember that maintaining proper transparency is good for your billing process.
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Final Words
So here we end our tour of how to invoice a company. Remember that invoicing is an important part of your business. So always make a professional invoice with proper and accurate details.
Highlight the total amount and let your clients have a transparent view of the due date and terms of payment. This will lead to trouble-free billing and prevent you from suffering from late payments.
Frequently Asked Questions
Jayanti Katariya is the founder & CEO of Moon Invoice, with over a decade of experience in developing SaaS products and the fintech industry. He holds a degree in engineering. Since 2011, Jayanti's expertise has helped thousands of businesses, from small startups to large enterprises, streamline invoicing, estimation, and accounting operations. His vision is to deliver top-tier financial solutions globally, ensuring efficient financial management for all business owners.
