8 Tips for More Effective Contractor Invoicing
Handling late payments, negotiating payment terms, and inaccurate contact information; For many general contractors, mastering the art of invoicing is still a tricky yet essential undertaking.
Between juggling all other aspects of your project management to-do list, proper contractor invoicing is a skill that requires the right knowledge, information, and timing.
In a perfect world, your clients would pay you exactly what you’re owed, on time, every time. However, effective invoicing occasionally demands a little extra effort and the right contractor accounting software to ensure your financial proceedings are going as smoothly as possible.
Timely and accurate invoicing ensures that you get paid promptly and helps maintain a positive relationship with your clients. With technological advancement, software like Sage 100 Contractor can streamline and simplify the contractor invoicing process, saving you time and reducing potential errors.
Sage 100 Contractor software provides contractors with a powerful toolset designed specifically to simplify and automate their invoicing workflows. From generating professional-looking invoices to tracking payments and managing project finances, this software offers a comprehensive solution to optimize invoicing practices.
Whether you’re looking to generate faster, accurate invoices or utilize Sage 100 Contractor to manage proper invoice tracking techniques, here are eight essential tips every contractor should know for effective contractor invoicing.
1. Automated Invoicing
An easy way to never have to worry about contractor invoicing is not to have to think about it at all! Setting up automated invoicing allows you to immediately send and track invoices to receive faster compensation for your services.
You can even change the settings on your automated invoicing to send out different invoice templates for different clients. When you can reduce the invoice processing time, you can get paid quicker than ever and stay focused on all your other tasks at hand.
2. Cover All Your Bases
When drafting your invoices, there’s honestly no such thing as going overboard regarding details and information.
A good frame of reference as far as content for your invoices goes should include all of the following details:
Assigning a unique invoice number for every sent invoice
Including the date at the top of the invoice
Record all client-based information (name, address, reference number, etc.)
Create an itemized list of all the project services provided
List and emphasize the total amount due, as well as any rates and fees
Include a payment deadline
The more detailed your invoices, the more mutual understanding you and your clients or subcontractors will have on all of the agreed-upon terms.
3. Incorporate Professionalism & Branding
Your invoices should be a reflection of your company’s image. That is to say that writing down invoices by pencil on any given piece of paper shouldn’t be your preferred invoicing method.
Ensure your invoices have a professional image and quality to them and incorporate any branding elements of your business, such as logo, colors, font, etc.
The more established and credible your invoices look, the more their recipients will respect and abide by them.
4. Outline All Payment Terms
The more accessible and simple you make it for your clients to pay you, the happier all parties involved will be! Outline and define all your payment terms as much as possible for fast and efficient compensation.
Be sure to identify and clarify all of the following payment terms with your future invoices:
All the payment methods you accept (as well as which ones you do not accept)
Your company’s payment information so clients know where to transfer or send money to
Identify your payment method preferences
Highlight any early payment discounts or late payment penalties
5. Standardize Your Invoicing Templates
Consistency is key when it comes to invoicing. Create standardized invoice templates within Sage 100 Contractor, including your company logo, contact information, payment terms, and clear itemized descriptions.
By using predefined templates, you can save time and ensure a professional look for all your invoices. Standardizing your invoicing templates can also provide clear and detailed descriptions of any work performed, materials used, and any additional costs incurred.
You can always break down your invoice into line items using Sage 100 Contractor to easily track and manage individual charges, making it easier for your clients to understand and approve the invoice.
6. Implement a Sequential Invoice Numbering System
Another component of effective contractor invoicing is organizing your invoices using a sequential numbering system to track and reference them easily.
Sage 100 Contractor offers customizable invoice numbering options, allowing you to establish a consistent system and quickly locate specific invoices when needed. This also helps you track your time and expenses more accurately using Sage 100 Contractor's time tracking and expense management features.
By implementing a sequential numbering system, you can ensure that you will capture all billable hours and reimbursable expenses, reducing the chances of missed invoicing and maximizing your revenue.
7. Review Analytic & Performance Reports
Performing regular reviews and reconciliations of your invoices allows you to ensure absolute accuracy and resolve any discrepancies promptly. Sage 100 Contractor's comprehensive reporting capabilities enable you to generate invoice-related reports, making it easier to track payments, identify outstanding balances, and address any issues that arise.
You'll gain keen insight into your invoicing performance when you utilize Sage 100 Contractor's reporting and analysis tools. With the push of a button, you can generate reports on outstanding balances, payment trends, or profitability by project, allowing you to make data-driven decisions and improve your invoicing practices.
8. Integrate Invoicing With Your Contractor Accounting Software
With today’s innovative contractor accounting software, invoicing is easier and more manageable than ever!
Automated invoicing features on contractor accounting software can range from:
Streamline the progress, T&M, cost+ and other unique construction invoicing
Accepting card payments directly from your invoices regardless of where your customers are located
Instantly convert quotes or estimates into official invoices
Oversee and manage real-time invoicing details for every project
Send, receive, or follow up on invoices through mobile devices
Create custom invoice templates that reflect your company’s branding
Streamline invoice collaboration across multiple teams, clients, or subcontractors
Trust Sage 100 Contractor for All Your Invoicing Needs
Better invoicing starts with smarter software. With Sage 100 Contractor, you can control every aspect of your contractor invoicing tasks, all from the palm of your hand.
Software Consultants works directly with contractors like you to ensure your contractor accounting software is set up and integrated to meet all invoicing and financial management needs. Contact us today to upgrade your invoicing efficiency!