Guide to Creating Invoices That Get Paid

Create your own invoice

You can easily create your own invoices, but be sure they contain all necessary information, and that the information is presented in an easy-to-read format. This includes 1) An invoice number 2) The date 3) The name and address of the company you are billing 4) The name, address, phone number and email of your company 5) The time period the invoice covers 6) An itemization of the products provided, the work completed, the hours spent (if you are charging by the hour) and the hourly rate if it varies by task or person performing the work 7) An itemization of your reimbursable expenses and receipts for them (Keep a copy.) 8) An itemization of amounts owed by category (labor, products, expenses and any amounts unpaid in previous invoices) 9) The total amount owed 10) When payment is due and to whom checks should be made payable 11) Late payment penalties

I recommend: Open Word and select NEW from the FILE menu. Then select Templates on Office Online and search on “invoice”. There are many other free templates available online such as this Excel template. You can also create an invoice in Filemaker Pro that is connected to your database.

Use accounting software

You may want to buy software that ties your invoices into the rest of your accounting rather than create your own invoice. As your business grows, this is recommended.

I recommend: You can buy Quicken Premier Home & Business, QuickBooks Simple Start or Microsoft Money  Home and Business for under $100 to track expenses and create invoices. If you need more forms, in-depth accounting reports, purchase orders, time tracking or inventory features, look into Microsoft Small Business Accounting, QuickBooks Premier and  Peachtree Complete Accounting.  See CNET for reviews.

Have a plan to collect

If payment is slow in coming, sometimes a simple, polite phone call to the person who contracted with you or to the company’s accounting department can get the ball rolling. But if it becomes clear you may not be paid, be prepared to take action.

I recommend: Consider a legal plan such as that offered by ARAG, which can be much cheaper and less time-consuming than going to small claims court or hiring an attorney on a case-by-case basis. You pay a low monthly fee to provide for limited legal services that may include telephone advice and letters or phone calls to late-paying clients. Often, a letter from an attorney is all it takes. Of course, you may also want to hire a collection agency. BuyerZone.com matches you to multiple collection agencies according to your needs. Also see this list of collection agencies by state.