More than 76 percent of small businesses fail because they didn’t include the correct prices on their invoices to clients. When you don’t get your invoicing right, your business will never succeed because you won’t make any money.
Are you looking at the different types of invoices you can use for your small business? Here are some of the best invoicing ideas to choose from.
1. One Time Invoices
There are as many different invoice types as there are types of businesses. The simplest one is a one-time invoice for a single sale.
When a buyer makes a purchase, the seller sends an invoice that provides details of the sale and the amount owing. This is the most common invoice in business transactions and it includes standard information such as:
- the seller’s information
- buyer’s details
- delivery date and payment terms
- purchase details, and the total price
- payment methods
Regular sales invoices are easy to standardize to streamline your invoicing process. Here’s a great example of the free invoice templates available for your business.
When an invoice becomes overdue, you may generate a reminder invoice. It’s a copy of the original sales invoice with a note that payment is past due. Add a clear notification of late fees or penalties to come.
2. Project Invoicing
A project is more involved and covers a longer timeline. You will want to receive interim payments for your work as the project progresses. There will be a formal contract setting out the terms of payment.
Deposit or Retainer Invoice
The buyer usually pays a deposit or retainer to get the project started. These details are in the contract terms.
Interim business invoices are periodic bills at an agreed-upon amount. These are periodic invoices, usually defined in the original contract.
Timesheets or hours worked on the project may generate the invoice information. Issue the invoice when the project achieves a specified level of completion.
After project completion, the buyer pays a small holdback on final inspection or approval. This final payment indicates project completion and that both parties are satisfied.
3. Other Invoices
Other situations may require a slightly different type of business invoice. When creating custom invoices, it’s important to ensure that you include the basic information. It’s recommended to always use a template.
Credit Or Debit Memos
A credit memo is an adjustment to a previous invoice. There may have been an error in the first invoice. Sometimes it completely reverses the original amount, or it might provide an agreed-upon adjustment to the price. A debit memo adjusts a previous charge by adding another fee.
These invoices are for a regular service or delivery and are often monthly. They are for the same amount each month, or they are seasonally adjusted depending on the goods or services provided. Recurring invoices are often automatically generated using specific software.
Research Different Types Of Invoices
There are a lot of different types of invoices you can create for your business. When you find the one that works for you, it will help you streamline your invoicing process.
Did you find this article helped you find the right invoice for your business? If you want more ideas on other business topics, scroll through some of our other posts.