If you own a small company, that performs specialized services you will need to learn How to Write an Invoice for Payment for Services Rendered. To get your due payment and also if you work as independent contractor, you should know to write the statement. Normally invoices include a list of services rendered for your client within the billing period and the total amount owed to you.
There are four methods of writing invoices for payment for services rendered which are:
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Method 1 : Contact information
1. Mention your company name at the top of the page.
If you are working as a free contractor without a formal business, use your permissible name.
2. Display address of your company below the name.
3. Give your contact number
If you are getting paid via PayPal or by any other way that relies on email address then provision of this information is important. Use that email address that is related to your payment account. If payment is not dependent upon email, comprise your company email address or an email address of company’s bookkeeping department.
Method 2 : Additional header information
1. Display the invoice number in the upper right-hand corner, below your phone number. You can choose the numbering method by your will, but each invoice should have a distinct number assigned to it for operational purpose.
- Use four or three letter abbreviations to keep things simple preface invoices with letters that indicate the client.
- After client, abbreviation write the invoice number.Extend the number out three places holders to ensure proper sorting by computer.
- Write the numerical date after the client abbreviation.Doing so makes the meaning if you get paid for regular services on a set timetable.Write the date in a formal sequence, yy-mm-dd.
2. Mention the current date in the upper right-hand corner, below the invoice number.
3. Mention the billing period following the date you raise the invoice.
For instance, if the invoice contains all services provided throughout the month of June, write 2012/06/01-2012/06/30. Show the billing period clearly.
4. Mention the due date.
Due date depends on the deal you have with your client, and it varies according to the agreement.Most due dates are usually 30 days after the invoice date. It is important to specify the due date.
5. Mention details of your client in the upper left-hand corner, below your company’s contact information and across from your invoice dates and number.
- Write the name of the individual or agency to whom you provided the services.
- Include the client phone number, company address, and email address.
Method 3 : Services rendered
1. Mention all services performed for the client within the billing period.
- Describe each service by name if you had performed multiple types of services. Like installing, consulting delivery, etc.
- List the services by project name if the services you rendered have specific task and project name.
2. Mention the date you completed each service.
3. You have to include the date you completed the services in a separate column next to the name of its respective services.
Included information about payment for each service rendered
You have to include this information in a separate column directly next to the name of corresponding services.
- If paid in a single lump sum for a specific service, list that lump sum.
- If paid hourly to perform a service, list the number of hours you worked, the total amount of money earned and the hourly rate.
4. At the bottom of your invoice include your invoice total, below services rendered list.
This number will show the sum of the payment due to you.
Highlight this number using color, bold, or enlarged print to draw your client’s attention to it.
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- Before sending the invoice, discuss your fees and preferred method of payment with your client. Full awareness from both sides about these details is important to prevent any disagreement or unpleasant surprises on either side.
- You should keep a thorough record it is best to have a digital copy and printed copy filed away. If you have any memos, emails, or other documents related to the invoice you should store all those in hard copy and soft copy.
- Word processing software’s basic spreadsheet will be helpful to you. Selection of right software matters a lot. Mostly software includes templates to help you structure your document properly, and many have designed features to keep invoice organized.
- If your client is not responding to a due date, make a polite phone call to know about the status of their payment. Some clients need reminders while other may not be aware that the payment hasn’t been received.
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If your client has any policy concerning the format of an invoice, you should be aware of that. In some cases, a client may want information other than the preceding mentioned points or they may request a specific format for the services rendered. It may be delay payment if you send them an invoice without this information.