You have done a great web design for your client. Well done! It’s time to get paid. Whether a beginner or a seasoned web designer, it is important for you to know the significance of creating web design invoices to get paid on time. Your creativity in creating gorgeous sites and beautiful portfolios may attract customers but won’t speed up your payments. Hence, you need to have a sustainable invoicing system that would help to promote on-time payment besides representing your brand. Knowing the hacks of creating an effective and professional invoice ensures all parties are on the same page and helps you to get paid on time.
In this article, we have shared a quick guide to cover the basics behind creating a web designing invoice. Read on to know more!
Purpose of using Web Designing Invoice
You deserve to get paid right away for all the hard work you have put in. As a business owner, it is obvious that you would remain busy in various parts of your business, and invoicing may seem troublesome. But the use of web designing invoices can help you ease up your business finances. It outlines essential information and tracks the rates you have charged your clients for a particular task.
Web designing business does not only involve designing beautiful websites for your clients there is even more to it. Investing in an expensive accounting tool or hiring a professional may not always help you out in monitoring all the details of a business transaction. And this is when web designing invoices come to your rescue. The basic purpose behind implementing a web designing invoice are:
- It helps in organizing the financial statements and payments.
- Makes bookkeeping much easier.
- Tracks your client’s account activity.
- Files important tax information.
- Tracks payment due dates and keeps a note of outstanding debts.
- Mentions the services provided and amount charged in detail.
The purpose of using web designing invoices is to prevent missing out on payments and taxes and thereby offering peace of mind.
Types of web designing invoice
Before learning the steps of creating web designing invoices, you must figure out what kind of invoice you want. Whether doing it manually or choosing invoice templates online, decide the type you need that best suits your requirements.
Depending upon the types of services you offer the invoice types vary accordingly. Some projects may require deposits while some may be a monthly ongoing project. Let’s check out the different types of invoices:
This is the most common type of invoice that states how much amount a customer owes you.
This type of invoice involves the charges and credit that to be included in the client’s account so that it matches with other invoices and orders.
This kind is generally in use when a client offers you a task of a monthly website update. For that, you receive an ongoing payment, and this is when you need a recurring invoice.
If there is an increase in the total amount that the clients owe to you, then you need a debit invoice to mark the changes.
If you owe a specific amount to the client as a refund or rebate, then you need a credit invoice. This is also known as a credit memo that marks the changes in the total amount.
As a term of the contract, you may receive a deposit before starting with the work. A prepayment invoice is a financial document that records the down payment or deposit on service before its completion and collecting the final cost.
if you are charging your clients depending upon the time invested in performing a service, then the time-based invoice is something that you should use. This invoice bills for a period logged in for a particular work so that the clients have a clear understanding of how much work is done over a certain span of time.
Steps to create web designing invoice
Now as you know why a web designing invoice is required and the various kinds of invoices used, it is time you learn the steps of creating the invoice as well. To create the perfect invoice for your web designing business you can use customized templates online. But make sure you add the following pointer to make it professional and flawless.
1. Create an invoice template
Creating an invoice may seem exhausting, and hence, it is best to automate the entire process. But first, decide which invoice method you would want to use. Selecting a template online automates the entire process that saves a lot of your time and money. Get Billbooks, an online invoicing platform that caters to all your business financial needs and makes the invoicing process much easier and faster. But being a web designer, you can even implement your creative ideas in creating a professional invoice template.
2. Add invoice tracking details
Invoice tracking details are a must-have part of a web designing invoice. The tracking details involve the invoice number, date, and due date.
An invoice number is an identifier that helps to track the transaction in the future. Doesn’t matter whether your client list is small or they run a small business, adding a unique number to your invoice is highly recommendable for the sake of your business.
Invoice date and due date:
Clearing the payments within 30 days of issuing the invoice is a normal practice among the business owner, whether small or big. Hence, mentioning the invoice date is important to state the due date. Supposedly, you miss out on mentioning the invoice date, and later on, you end up with a huge delay in your payment clearance from the client’s end due to the lack of clarity.
3. Insert your business logo
Besides providing information about the services you provided it is essential to promote your brand as well. Your business logo represents your brand, and you must insert it in your invoice if you have it.
4. Add contact details
Ensure accuracy of contact details of both your client’s as well as yours. Use the same format to add the details and mention the following for both:
- Business name
- Contact number
- Fax number
- Email address
5. Include an itemized list of services
Sending out an invoice with just the entire amount won’t convince your clients to settle the payments. They want clarity as to where their dollars are being invested in. Certain projects which increase in size after you take it on or the actual amount varies from the estimated price, an itemized list of services brings clarity in such cases. Create a simple format and mention the services offered for a better understanding of the clients. The list should cover the following points:
State every service that has been provided while working on the project. Do mention the extra work as well, which was added later.
Create a price list:
Insert the price list corresponding to each work done. Mention the hourly rate (if any) and calculate the total amount for each work.
The total and subtotal amount won’t be the same always. Hence, mentioning the subtotal amount is important.
6. Payment terms and conditions
Being a business owner you must build up your personality as well as your business enterprise professionally. Being a creative person you design attractive websites for your clients in a stipulated time frame, but it’s only fair when they return the favor. Hence, to avoid complexity with payment, convey your payment terms to your clients and especially to your new customers.
Establish payment deadline:
Necessarily, all your customers won’t be equally punctual in settling the payment. Irregular payment may put a kink in your business by putting a hold on the cash flow. Such a situation may result in a heavy economic downturn as you need your payments on time to carry out your other business expenses. Therefore, you must establish a payment deadline to ensure that you receive all your payment on time.
Provide a wide option for payment so that your clients can pay off immediately. Limiting the payment modes to certain platforms may hinder your timely cash flow as your clients may not agree with that. Hence, either you mention your payment methods before or offer them multiple options.
Late fee policy:
Chasing your clients for payment after the due date may seem daunting. Hence, mention the late fee policy in your payment terms.
Early payment discounts:
Offering discounts on early payment is a great option to instigate your clients to clear the payments on time.
7. Mention the total amount due
Do mention the total amount due to avoid any confusion. If you are entitled to taxes then the tax amount gets added to the subtotal changing the total amount. Hence, for utmost clarity mention the total amount that the client owes you.
8. Improve accessibility of your invoice
Besides creating an accurate invoice, it is also important to improve its accessibility. Software platforms like Billbooks allow you to get your invoice ready within seconds and send them out via email. These invoices can be accessed anywhere and through any device. Moreover, this takes them through secure payment portals that ensure the safety of your banking details. As additional benefits, this software helps you track the payment, send reminders, create financial reports and track business expenses.
Your creative persona should reflect on your web designing invoices as well. A bland and page-long receipt is boring, and one would get lost in the sea of information. A nice and accurate invoice resonates with your brand and helps you receive timely payments. The article provides a step-by-step guide to create a web designing invoice that would be simple and at the same time attractive.