- Rewards-Based or Equity Crowdfunding: Which is Best for My Business? - April 18, 2022
- Which Entity Should E-commerce Businesses Choose for Incorporation? - February 2, 2022
- 4 Tips on How to Identify and Attract Your Ideal Customer - January 24, 2022
If you’re new to the side hustling and are paid for the work you do, there’s a 100 percent chance that you’ll need to submit an invoice to your respective client. What should be included in an invoice and what’s the best way to formulate and keep track of these documents?
We’ve created a quick primer for your side hustle’s invoice that will impress clients with its professional design and establishes an organized structure that ensures you’re getting paid in exchange for your hard work.
What goes into an invoice?
Your invoice summarizes the services you’ve provided to clients over the course of a specific time span. Invoicing allows you to keep records of the money you’re taking in, which is helpful for better understanding your cash flow and is a more organized method to utilize during tax season than, say, a box full of random receipts.
Most invoices are created using online templates or trustworthy software programs. While invoices may vary a bit depending on the industry you work in, a typical invoice covers the following areas:
- Your name, business name, billing address and contact information
- Invoice number for your own personal records
- Date (marked with the day that the invoice is sent out)
- Billing details (i.e. the name of the client and their address)
- Description of the items/services fulfilled for the client
- Price of said items/services along with any additional fees and taxes
- Payment terms, which outline accepted forms of payment, like credit cards or checks, and whether or not there are any late fees
- A place to add any personal notes
To give your invoice a personalized touch, include your business logo and save as a PDF before sending.
Related: How to Get Your Invoices Paid, Fast
Should you use a software program?
Ultimately, this will depend on the type of work you do and if your workload becomes more complicated over time. For example, if you are a freelance writer who only writes two to three articles per month for your client, you may be content using free invoicing templates online.
However, if you find your workload is expanding and requiring you to keep up with more detailed items, you might consider utilizing invoicing software.
Most software programs, like Square and FreshBooks, include built-in templates that you can fill out and send to clients. Additionally, you will be able to manage and keep track of your invoices through both mobile and desktop devices, set up automatic payment reminders, and keep your information stored all in one place. The latter tends to be the most helpful when it’s time to file taxes.
The end goal of invoicing
Surprisingly enough, invoicing is more than just getting paid on time. The understanding goes both ways with the client and the entrepreneur. When you have a proper invoicing system in place, you have a clear understanding of your side hustle’s finances. The client also better understands the work you have put in for them.
Invoicing upgrades your side hustle from passion project to a professional business in its own right and will allow you to make a good impression on your clients.