• Communicate with your customers. It’s common to send a reminder the day a payment is due, followed by weekly reminders. Use the same point of contact for all billing matters if you can; building rapport with an individual can grease the wheels if a misunderstanding does occur.
• Automate invoicing. The right software can automate your invoicing process and cut down on mistakes made by manually billing your customers. Wave, Zoho Invoice, and QuickBooks invoicing software are great platforms to help you automate your invoicing.
• Number your invoices. Be consistent with your invoice numbers to avoid confusion and help find past invoices quickly. Some invoicing experts recommend that you avoid labeling your first invoice 001, as customers can perceive a higher number as a mark of established experience. So, start with a higher number.
• Set your payment terms in advance. If possible, send out a written estimate before any work is done, then follow up with an invoice afterward. You can solidify your client’s expectations and avoid confusion down the line. Creating this kind of consistency in your billing can also speed up payment, as the customer isn’t caught unaware by a cost they don’t recognize.
• Set specific payment terms. Be precise when you specify payment terms. Customers often view phrases like “payment due upon receipt,” to be a bit more vague than an actual date.