Many digital marketing experts and online freelancers suffer from non-payment every year. Not only does this interrupt cash flow, but it also affects one’s mental state. You worked hard to earn a living, yet there are instances that your clients fail to pay the money that they owe you. So why does this happen?
There are many factors to consider when it comes to non-payment. However, one of the most notable reasons is because many online marketers don’t have an invoicing system. As much as we want to earn, we also need to set up a system that will help us get paid. Your clients are not going to pay you unless you send them an official invoice. That’s why it’s time for you to create a digital marketing invoice for your brand or business.
What’s it for?
Now, you might be wondering what a digital marketing invoice is for and why it is essential. Different invoices serve different purposes. While they are similar documents, several invoices are meant for a specific industry. For digital marketing invoices, it’s exclusively for digital marketing agencies.
Invoicing clients manually can be frustrating. It takes a lot of time and has a high chance of getting lost in your client’s mail. If that happens, you will need to send a new one by repeating the same process. Before you even get paid, the due date for payment has already passed, and you’re now dealing with a potential non-payment.
That’s why having an invoicing system for your digital marketing business is crucial. Not only will it create a more fluid payment process, but it will also guarantee that you will get paid on time.
So, what do you have to do to create a proper invoice and get paid for all of your hard work? Here’s a quick guide on what you can do to design a professional digital marketing invoice that you can send to your clients.
Automating Your Invoicing System
The first step towards establishing an invoicing and payment system for your business is to get a reliable invoicing system. This platform will allow you to create, automate, send, manage, and track your invoices. You also want to check if it also accepts online payment. That way, you can do multiple options all in one place.
ReliaBills is one of the best invoicing platform that lets you do all of this. Plus, it also allows your recipients to pay you online via the payment method you set up on your account. You can even create personalized templates that will make your invoice unique from other companies. You can get all of these features – and more – when you create your FREE account.
With an automated invoicing system in place, you can easily set-up recurring payments and payment reminders. You can even get detailed reports about the status of your invoice and your overall earnings.
How to Create a Professional Digital Marketing Invoice
Let’s start with the essential elements that should be included in your invoice. First, it’s essential to have the word “Invoice” somewhere at the topmost portion of your invoice. That way, your clients will know what the document is all about the moment they open it.
There should also be the date when the invoice was created to go along with a unique invoice number. This number will be linked to that specific bill. That way, you can review invoices easily whenever you need to recall one. You will place these elements at the top right-hand corner.
Below this area, you will have the client’s name or company name, address, and contact details. On the opposite corner; place your business name, logo, address, and contact details. For your contact details, make sure you include your phone number, email, fax number, and other relevant forms of contact that you want your clients to know about.
In the middle portion of your invoice, create a detailed list of goods or services that your business has provided to your clients. Include the corresponding rates for each one of these items. If you work hourly, make sure you include the number of hours that you rendered for each item.
At the bottom of the invoice, add a subtotal that’s either highlighted or in bold font for maximum visibility. In addition, you would also want the due date of the invoice to be visible as well. That way, you can guarantee that your client will be aware of the deadline for the invoice. Finally, don’t forget to include your payment terms.
Setting Up Your Payment Terms
Speaking of payment terms, we also need to discuss what you should mention. Every business needs to have payment terms established for their clients. This information is critical as it will ensure on-time payments to cover your operational expenses.
For example, you will need to determine the exact date of when you want to get paid. If you have an on-going project, you can choose a weekly, monthly, or quarterly invoice. You can even choose to send an invoice upon completion of the project or on some other schedule that’s convenient for you. Whatever option you decide, make sure you stick to it consistently.
There will also be instances where you’ll need to invoice certain clients more frequently than others. However, it will depend on the type of project they have for you and the length.
You will also have to decide how you want to receive your payments. That’s why you need to include your payment options in your invoice. It’s always good to be flexible when it comes to payment. Your clients will love the convenience of knowing that you accept multiple payment options.
If you’re using an invoicing platform like ReliaBills, you can easily accept all debit and credit cards online. If you want to accept cash or check for local payments, you can do that as well.
Finally, you will need to have a policy for collecting debt. What’s going to happen if you encounter late payments?
You may have experienced late payments before that turned into non-payments because you didn’t have a corresponding policy for it. That’s why you need to have a clear action plan to deal with these types of scenarios when it does happen.
For example, you can insert a late fee charge for payments that were made past due. You can also state that you’ll take legal action after three failed attempts to collect. By instilling these policies, you can ensure that your clients will not be complacent when paying the money they owe from you.
Make sure you include all the payment terms that you have in your invoice. You can even go over these policies before taking on a project for a new client. That way, your clients won’t forget them.
Performing Quality Assurance
After designing and incorporating all necessary elements into your invoice, it’s time to do some quality assurance checks. There’s nothing more frustrating for clients than receiving an invoice with many typos and inaccurate calculations and currency mistakes. Not only will your business look unprofessional, but you will likely lose more clients in the process. Some clients will even refuse to pay because of these errors.
To solve this problem, it’s always good practice to go over your invoice and make the necessary edits before sending it. This is also another reason why an invoicing platform like ReliaBills is important. Once you fill out all the information correctly, ReliaBills will automatically save your invoice template for future use.
The first thing you need to check before sending your invoice is whether or not you’re sending it to the right person. Imagine sending your invoice – which is a confidential document – to the wrong person. That person can now see sensitive financial data, which is going to look bad for your company.
Also, go over the amounts you placed and make sure that they are 100% correct and accurate. Doing so will make sure you are not over-charging or undercharging your clients. For international clients, make sure the currency and conversion rates are accurate.
Last but not least, make sure all of your contact details are correct. That way, they can reach out to you if they have concerns and questions.
So, there you have it – a quick and comprehensive guide to creating a digital marketing invoice. Make sure you follow this guide religiously by including all the points that were mentioned.