How to send an invoice: The comprehensive guide to invoicing

Key takeaways

• One of the most important aspects of effective invoicing is the timing. Sending invoices promptly helps you get paid faster and build a positive and professional relationship with your customers.

• By embracing digital invoicing tools, you can ensure the accuracy of your invoices and maintain a comprehensive transaction history.

• Leverage tools like Airwallex Payment Links for faster, more efficient payments. As an end-to-end financial system, Airwallex makes it easier to manage your payments and receipts.

When it comes to invoicing, it’s important to get the basics right. Whether you’re a freelancer, small business owner or part of a larger organisation, knowing how to send an invoice can have a big impact on your cash flow and customer relationships. This guide will take you through the steps to create and send professional invoices, from timing and content to the best methods for delivery. We’ll also explore the benefits of digital invoicing and how it can reduce errors and improve financial tracking.

When to send an invoice

You know the importance of maintaining a strong rapport with your customers, and the timing of your invoices is key. Send them too early, and it might seem presumptuous. Too late, and it could lead to payment delays. A well-timed invoice, however, speaks volumes about your professionalism and organisational skills, boosting your reputation and securing future business.

The timing of your invoicing can also have a significant impact on your cash flow. For one-time projects, it’s a good idea to send the invoice immediately after completing the work or delivering the goods. This approach minimises the risk of payment delays and ensures that the work is fresh in the customer’s mind. Wait until the project is finalised to avoid any discrepancies or last-minute changes that could complicate the accounts receivable process. A clear and finalised deliverable makes the invoicing process smoother and more professional.

For ongoing services, the timing of invoicing can be more nuanced, so it's important to invoice at agreed intervals or milestones. This could mean monthly or after the completion of specific project phases. Clear communication with your customer about these intervals is essential to avoid any misunderstandings. Regular invoicing helps with cash flow management and keeps the customer informed about the progress and value of the services provided.

How to send an invoice

Once you've decided on the best time, the next step is to ensure your invoice reaches your customer efficiently. The method you choose to send your invoice can significantly impact the speed and ease of payment. While traditional paper invoices were once the norm, the digital age has introduced more efficient and environmentally friendly options. Sending an invoice digitally, via email or through an invoicing platform, not only speeds up the payment process but also reduces the risk of loss or delay.

Methods to send an invoice

Postal mail

Pros

• Tangibility: physical invoices can feel more official and are less likely to be overlooked.

• Professionalism: some clients may prefer the formality of a physical document.

Cons

• Cost: printing, paper, and postage can add up, especially for high-volume invoicing.

• Speed: it can take several days for the invoice to reach the client, delaying payment.

• Environmental impact: the use of paper and the carbon footprint of mail delivery are environmental concerns.

• Storage: physical storage of invoices can be cumbersome and take up space.

Email

Pros

• Speed: invoices can be sent and received almost instantly.

• Cost-effective: there are no printing or postage costs.

• Convenience: both the sender and recipient can access the invoice from anywhere with an internet connection.

• Ease of record-keeping: digital copies are easy to store and retrieve.

Cons

• Security: emails can be intercepted, and there’s a risk of phishing or spam.

• Delivery issues:emails can end up in spam folders or be missed if the recipient has a cluttered inbox.

• Technical issues: recipients may have trouble opening certain file types or may not have consistent internet access.

Invoicing software

Invoicing software typically sends the invoice via email, so the same considerations of email invoicing apply.

Pros

• Automation: invoicing software can automate the entire process, from creation to sending and tracking.

• Integrations: integrations of accounting and payment systems can streamline the invoicing and accounting reconciliation process.

• Tracking: you can track when the invoice is opened and paid, reducing follow-up time.

• Security: most invoicing software offers secure payment gateways and encryption.

Cons

• Cost: some invoicing software can be expensive, especially for advanced features.

• Dependency: you are dependent on the software provider, which can be a concern if the service goes down.

Step-by-step instructions for sending an invoice via email

1. Prepare the invoice: Use a word processor, spreadsheet, or invoicing software to create your invoice. Double-check all the information for accuracy and completeness.

2. Save the invoice: Save the invoice as a PDF to ensure it looks professional and cannot be easily edited. Use a clear and descriptive file name, such as Invoice_12345_ClientName.pdf.

3. Compose the email: The right invoice email can make a huge difference. See the email template below for an email invoice that will help you get paid faster.

4. Attach the invoice: Click the attachment button in your email client and select the invoice file you saved earlier. Ensure the attachment is correctly attached before sending the email.

5. Proofread: Carefully proofread the email for any typos or errors. A small mistake can lead to confusion and payment delays.

6. Send the email: Click the "Send" button to send the email to your client.

How you send an invoice is more than just a formality — it's an opportunity to strengthen your professional rapport with your customers. Opting for the right approach, ensuring the details are crystal clear, and maintaining precision will expedite the payment process and improve business relationships.

Invoice email template

First impressions are important, and starting your email with a personalised greeting is a great way to show respect and build rapport with your customer. Addressing them by name, such as “Dear [Customer name],” can make a big difference in how your email is received. This small touch can help maintain a positive relationship and increase the likelihood of timely payment.

Your email's subject line is just as critical. It must be clear and to the point, immediately conveying the message's content and importance. An effective subject line could read, "Invoice for [Project Name]—Due [Due Date]." This structure highlights the invoice amount and due date and provides context, enabling your customer to prioritise and respond accordingly.

Now, let's focus on the email's body. Provide all the necessary information in a clear and organised manner to avoid confusion and ensure a swift payment. Start by expressing your thanks for their business and briefly remind them of the project or service for which the invoice is being sent, then provide a detailed breakdown of the invoice information.

For those who still prefer the conventional, a PDF attachment of the invoice is a sound choice. It's easily accessible and printable, accommodating those who prefer hard copies for their records.

Email invoice example:

Subject: Invoice for [XXX] services – Invoice #[12345] - Due [15 October, 2023]

Body:

[business logo]

Dear [customer’s Name],

Please find attached the invoice for the [XXX] services we recently provided [add date if applicable].

Invoice details:

• Invoice number: [12345]

• Due date: [15 October, 2023]

• Services provided: [list services and cost breakdown]

• Total amount due: [$1,500.00]

To make payment, you can use this secure [payment link] or transfer the amount to the following bank account:

• Bank name: [bank name]

• Account name: [company name]

• Account number: [account number]

If you have any questions or need further information, please don’t hesitate to contact me at [your email] or [your phone number].

Thanks, [Name]

[Company name]

[Company address]

When to follow up on an invoice

Following up on an invoice doesn’t have to be awkward. One of the most important aspects of managing your cash flow is ensuring that invoices are paid on time. However, it’s not uncommon for payments to be delayed. If a payment is overdue, it’s best to send a follow-up within a week.

When you do reach out, keep the tone of your message professional and polite. A simple reminder email can go a long way in prompting payment. Be sure to reference the invoice number and the due date in your email. This helps to avoid any confusion and makes it easier for your customer to locate the invoice and process the payment. For example, you might write, “I wanted to follow up on the invoice #12345, which was due on [due date]. We haven’t yet received payment, and I wanted to check if there were any issues or if you needed any additional information.”

Consider setting up automated reminders. Many invoicing software solutions offer this feature, which can send reminders to customers a few days before the due date and again if the payment is overdue. This helps to keep the invoicing process smooth and reduces the need for you to manually track and send reminders.

Offering flexible payment methods can significantly improve the likelihood of timely payments. Some customers may prefer to pay via credit card, while others might find it more convenient to use local payment methods. By providing a variety of payment methods, you make it easier for customers to pay, which can reduce the chances of delays.

Using tools to enhance invoicing efficiency

To streamline your invoicing process, using the right tools can save you time and hassle. One of the most significant advancements in modern invoicing is the automation of invoice creation. With the right software, you can set up templates that automatically populate with the necessary details, such as customer information, itemised services, and payment terms. This not only saves you time but also reduces the risk of human error, ensuring that each invoice is accurate and professional. Automation can also handle repetitive tasks, such as sending reminders and tracking payments, allowing you to focus on more critical aspects of your business.

Using finance platforms and payment gateways like Airwallex can further streamline your invoicing process by providing a secure, frictionless way for customers to pay. Airwallex supports 160+ payment methods, from credit cards and bank transfers to digital wallets and local payment methods, giving your customers the flexibility to pay how they want. By offering a more convenient payment experience, you can improve customer satisfaction and get paid faster, ultimately helping you maintain a healthy cash flow.

Embracing digital invoices is yet another strategic move. Beyond their eco-friendly nature, digital invoices offer a host of practical advantages. They streamline your record-keeping, eliminating the need for physical files. Automation reduces the risk of errors and ensures a consistent, accurate approach to invoicing. Plus, the immediacy of digital invoicing means your customers can receive and process their bills faster.

Most invoicing software provides comprehensive reports and dashboards, allowing you to easily identify which invoices have been settled, which are pending, and which are overdue. This data is invaluable for maintaining strong customer relationships and ensuring a steady cash flow. By keeping a close eye on your invoice status, you can take a proactive approach to following up on unpaid invoices and quickly address any issues that may arise.

The right tools can revolutionise your invoicing process, rendering it more efficient, precise, and customer-oriented. Whether you're a freelancer, a small business owner, or part of a larger enterprise, the investment in the right invoicing and finance operations tools is a strategic one that can yield considerable returns in the long term.

Get paid faster with Payment Links

Airwallex Payment Links help you get paid faster with secure links that are generated in seconds for sharing via email, SMS, social media, or placing directly into your invoices. Customers click and pay online using their chosen payment method, so you get your money faster. Our integrations with Xero, QuickBooks, and NetSuite, let you add Payment Links directly into invoices automatically.

Frequently asked questions

What information should an invoice include?

Depending on your business type, invoices and what they contain can differ slightly. Here are the core elements to work from:

• your business logo

• business name and address

• the date of supply

• invoice number

• PO number (if applicable)

• invoice date

• a cost breakdown

• the total amount due

• a clear outline of the payment terms and methods

How often should I send invoices?

The frequency of sending invoices depends on your business model and the terms agreed upon with your customers. Typically, invoices are sent after completing a project or at regular intervals, such as end-of-month. Always ensure the invoicing schedule aligns with your contract terms and customer expectations to maintain smooth cash flow.

What is the best way to send an invoice?

Digital invoice formats save time, reduce costs, and improve record-keeping. Electronic invoices are easier to send, track, and retrieve, making them essential for businesses handling multiple transactions.

How do I follow up on an unpaid invoice?

If the due date of an invoice passes without payment, follow up with a gentle reminder. Reference the original invoice, confirm whether payment has been processed, and reattach the invoice if necessary. Keeping the tone polite but firm can help avoid unnecessary delays.

What are the benefits of using invoicing software?

Using invoicing software offers several benefits, including automated invoice creation and sending, professional templates, easy tracking of payments, integration with accounting systems, and enhanced security features. It also saves time and reduces errors, making the invoicing process more efficient and streamlined.