5 Tips for Sending More Useful and Effective Invoices

by on 16th July 2010 with 40 Comments

It happens all the time. No sooner than you click the send button does the phone ring. At the other end is an angry client who just received an invoice. Despite the fact that all of your payment agreements were handled before the project ever started, he has still somehow managed to be surprised at the amount that he owes you.

Whether the description above typifies your client base or not, it can still be a good idea to soften the blow of an invoice by showcasing what you did and how it benefited them. There are also a few things you can do to make the whole process easier and therefore (hopefully) speed up payment. Below we’ll look at five things you can do to make your invoices both more useful and impressive.

1. Show Measurable Improvement

screenshot

There’s nothing that can make a large dollar amount seem acceptable quite like hard data showing that it was worth every penny. If you’re doing continual work for someone to improve the performance of their site, toss in a few reports that prove you’re actually doing your job.

These can be free and quick to put together. Use Google Analytics or Alexa ratings to showcase a jump in traffic and search rankings to prove that your SEO tactics are working.

2. Show a Quick Before and After

If you’re doing straight design work then it’s not easy to show improvements that are measurable with graphs and data. In this case you could attach a quick before and after shot of the logo or website.

They’ve obviously already seen both the old version and the one that they’re paying you for, so the goal here is a little more psychological in nature. At that moment when they see the total and wonder “why the heck am I paying them all this money?” you want to be able to provide a good answer.

Immediately being shown the drastic change is just a friendly reminder of the effort you put into the project. Even if the result is a half a second thought that goes something like “wow, it really does look a lot better” you’ve hit your goal on the bullseye.

If the project was more drawn out, toss in all the major revisions. Clients have a tendency to think that they shouldn’t be charged extra for calling you every ten minutes with “minor changes.” Actually getting a look at all the revisions you had to go through every time their mom or neighbor suggested a color change will help show how any extra charges were merely the result of you following direction.

3. Itemize Like Crazy

screenshot

If you really want to make your client feel like he’s getting screwed over, put a single line item on your invoice with a big total for the amount owed. There’s simply no better way to ensure that you look like an overpaid prat.

A better way to approach invoicing for design work is to itemize your tasks, whether you consciously think of them that way when you’re carrying them out or not.

Odds are, you put time into initial concepting, rough layout, concept tweaking, final layout, client-directed redesigns and minor revisions. All of these and more should be reflected on your invoice. Don’t go overboard and make it seem like you’re charging by the mouse click, just be sure to do justice to the amount of work you actually put into the project.

Again there’s a psychological element strongly at play here. Even if the work delivered is the same, a client is much less likely to begrudge writing your check if a significant amount of work has clearly been put forth on your part. Charging $1,200 for a web design might seem cruel and unusual while charging for all the items listed above seems professional and appropriate.

4. Make it Easy to Read and Decipher

While adding all these extra features to your invoice, it can be quite easy to get carried away. Make sure you don’t overwhelm your client by sending a tome of payment conditions.

Invoices should be clear and easily readable. The total should not be hidden in fine print but displayed prominently along with a definitive due date.

If you decide to add attachments per the suggestions above, make sure most of them are of a visual nature and can be comprehended in only a few seconds. Ten pages of extra reading won’t earn you any points with a client and is a great way to cause them to look for a new designer with a simpler process.

5. Add PayPal Integration

screenshot

If you’re still running to the mailbox every week to see if your clients have finally mailed the checks, you’re getting screwed. There is simply no reason that payment should be delayed when free and quicker alternatives exist that are much more secure than sticking a stamp to a month’s worth of wages and hoping it survives the grand journey of jumping countless flights, trucks, bins and mail bags.

I have completely made the switch to electronic payment and now require that all my clients use PayPal. It’s free for them and infinitely convenient for me. Though I have had a client or two show surprise that I wouldn’t allow them to simply mail a check, in the end it’s never been a serious issue and many have even been thoroughly surprised at how much better the process was as a result.

Getting paid electronically means no more waiting at the mailbox. You receive an instant notification via email and can easily transfer the money to your checking account from your computer or smartphone (this step can admittedly take a few days).

Integrating PayPal (or whatever financial service that you prefer) into your invoices can be as easy as including your PayPal email address and specifying that payments must be made to that account. Other more advanced options might include a “click to pay” feature.

The biggest thing that you have to watch out for with PayPal is international payments. It turns out, as I discovered the hard way, that you get slapped with a fee when any currency exchanges take place. This sort of kills the “free” aspect, but it’s understandable that PayPal can’t stay in business while taking the hit for any non-desirable currency fluctuations. If anyone knows of a better free service that doesn’t charge you for international exchanges, I’d love to hear about it.

Online Invoicing Services

If you feel lost in the whole invoicing process or simply hate putting them together, there are a number of great services on the web that make it much less work. By building a template or two to start from you can rapidly create and send invoices and then track payment with ease. Here are a few of the services I’ve come across.

The Invoice Machine

screenshot

Invoice Bubble

screenshot

CurdBee

screenshot

FreshBooks

screenshot

Blinksale

screenshot

Ballpark

screenshot

Siwapp

screenshot

MyClientBase

screenshot

Simplybill

screenshot

Harvest

screenshot

CannyBill

screenshot

Conclusion

Invoicing is one of the necessary evils of being a freelancer. We designers love getting paid but hate the paperwork it involves. I hope the tips and resources above will help you boost the effectiveness of your invoicing. If you’re looking to create an invoice template from scratch, be sure to read our guide on “Creating a Well Designed Invoice: Step-by-Step.”

Leave a comment below and share any bits of wisdom you’ve learned over the years regarding invoicing clients. Also be sure to list any great invoice services that I missed!

Comments & Discussion

40 Comments

  • Sufian

    Great article. I’d like to read that step-by-step guide you mentioned at the end. What’s the link to it? Couldn’t find it via search.

  • http://bee-software.net/ Dave

    Hi if you would rather keep your data on your computer you could give this software a try:

    http://bee-software.net/invoice-software/

    “Mac, Windows & Linux “

  • http://scottblock.com Scott Block

    Great article. I would love to see a comparison of the different invoice service websites. What do you get for free from each one? Who gives the best customization?

  • Joshua Johnson
  • Clayton Correia

    Thanks for this. I like the idea of listing every little detail to the client. I also wanted to add that I’ve been playing around with quoterobot and it’s awesome. Highly recommended.

  • http://al.pepin@reddogrun.com Al pepin

    Paypal is free to receive money? Hmm, am I missing something? I looked and says they charge 2.9%?

    Great article. Our invoices at Red Dog Run are just as fancy and detailed as our work…I agree it is really important for your client to feel good about the whole project, including getting the bill.

  • http://www.stevensst.com Freelance Web Designer

    Don’t forget Billings for Mac! Recommended for any freelancer.

  • Daphne Blumenthal

    $1200 is cruel and unusual for a website design? I think not. We need to stop being afraid to charge what we’re worth, or our profession will never be taken seriously. Many of us started doing this as college (or high school) students but now we have families to feed and lives to live. The amount of effort that goes into web design alone (never mind implementation) is worth well more than $1200 for most sites.

    Granted a $1200 invoice might be a shocker if the client thought they were asking for “just a few simple changes.”

    Sorry I know that’s just a throwaway detail but it caught my eye.

  • http://wwebz.com Rehaan

    Thanks nice read

  • http://www.photolaboratory.com Andrea McLaughlin

    I also suggest, when possible invoice a larger job in smaller segments more frequently. For big jobs, ask for a deposit, if it’s appropriate for your industry. As this article starts out, clients seem shocked at the amount they owe you particularly when you do a lot of work before asking for any money.

  • Pingback: CSS Brigit | 5 Tips for Sending More Useful and Effective Invoices

  • http://www.royalty-club.com Rondell Paul

    This is a great article and I love some of the comments as well.

    I think BillingBoss is a great free online invoicing tool for freelancers.

  • Pingback: 5 Tips for Sending More Useful and Effective Invoices | Design Newz

  • http://adlankhalidi.com Adlan Khalidi

    Hi. Thanks for the great article. Currently I’m using Invoice Machine. But now feel like I need to improve on how to prepare the invoice better!

  • Marco

    Adlan >> I was also once an InvoiceMachine user..but lately I got disappointed with the restrictions of their service and switched to CurdBee.

    I strongly suggest you to give a try on CurdBee. You would surely improve your invoicing process :)

  • http://www.yellowwebmonkey.com Alexis M. Marks

    Good points. Switching to electronic contracts helped speed up the process for me. Not only do they sign quicker (without have to get them to scan or mail back); but because they get emailed the final copy, I can add a note referring back to the contract for the milestone payment.

    I have been using http://www.rightsignature.com for mine and my clients haven’t had any problems.

  • http://www.intertec.com.au/ perth web

    we use curdbee after using quickbooks, i love how its totally cut down and simple, may not suit all but its perfect for me.

  • Ryan

    Thanks for sharing some wonderful information. I’ve been using Freshbooks and didn’t know there are better services at much less. First time I came across some of these services and went through them. Certainly curdbee songs promising, it has all the features I have been using in Freshbooks for free and their users speaks so high of them too. Once recent in-depth review http://bit.ly/bHBgz7

    Awesome service and I didn’t have much problem in switching from Freshbooks to curdbee and you know, this would save me more that $150 per year. How cool is that? Thanks everyone for discovering sharing these wonderful new services!

    Would love to see more of them :-)

  • http://www.design21th.com Web Dizajn Sarajevo

    Great! THX for sharing…

  • http://theonlinestuff.com funny pictures

    nice i like that funny pictures

  • http://www.helloeverything.co.uk David

    Great article, i currently use a word document as a template and modify it for each client. It’s simple but effective! Thanks for the tips, i’ll definitely use the before and after idea the next time i send out a big invoice.

  • http://www.emlakx.net emlak

    This is a great article and I love some of the comments as well

  • http://www.retirementcalculators.org retirement

    Nice writeup. Especially the part about itemizing like crazy.

  • Pingback: links for 2010-07-20 « random thoughts and casual ruminations

  • http://deyvin.6te.net deyvin

    Great!

  • http://tamixes.onsugar.com Tamixes

    Thanks for the post.

    I’ve started to attach thumbnails of the work I’ve done – that way both I and the client have a visual record of the work done.

  • http://www.Webx99.com excellent Vivek

    Really informative post but could you short-out some of the best invoicing app which are open-source or free.

  • Bryan

    “Itemize Like Crazy” is a really bad idea.

    I’ve been in business for over 20 years, and I can tell you first hand that over-itemizing just leads to arguments. “Why does X take so long? That should only take you 5 minutes!” “Why do I have to pay for Y?” “Full hourly rate for Z? Shouldn’t that be half price?”

    One line isn’t great either. You need a happy medium. Enough detail to make the customer feel like they’re getting value for their dollar, but not so much detail that they feel like you’re Nickel and Dime-ing them to death.

  • http://www.om1.de Frank

    Nice Article! Is it a good idea to use an online-invoicing-app? For me it feels a little strange to put such data into software hosted by another company. My favorite invoicing-app for Mac is GrandTotal. http://grandtotal.biz

  • http://www.pixelcellar.com Tim Marshall

    Great article, can’t say quite how much I advocate getting clients to pay electronically. Nothing worse than having to go to the bank to pay in a cheque!

    If you’re a UK based business and are in need of a online invoicing system why not give FreeAgent a look. It’s got some brilliant features to help take the pain out of Tax and VAT returns for all types of business; Sole Traders to LTD companies and their support is ace. Get a free months trial now here to check it out: http://www.freeagentcentral.com/?referrer=36alu7bx

  • http://priyanksharma.com/ Priyank Sharna

    Great article. Until now I’ve been using Excel to invoice my clients. I think it’s high time I test drive these services.

  • http://www.prefabrikyapi.com prefabrik

    its very nice and amazing project.

  • http://www.sahhosting.com hosting

    hosting ve web hosting

  • http://www.nedirvikipedi.com/ Vikipedi

    Thank you. Benefited a lot from your site. Content for the site is very successful. After that, I will visit it often.

  • http://hostmavi.com/reseller.html reseller

    very nice this blog thanks admin

  • http://hostmavi.com hosting

    thanks very nice blog!

  • Alex

    I did give Freshbooks and Zoho a try, this is one of the finest invoicing application; however, the price is too much for a small businesses and freelancers considering the limitations of basic plans.

    I would really recommend you to give Invoicera a try, its basic plan starts from $9.95 and you can send unlimited invoices to 25 clients. It supports 20 popular payment gateways so you have more options to get paid on time. It also supports multiple currency and languages so you do not need to worry while sending invoices to your global clients. the most appealing feature of Invoicera is its customize invoice template feature where you can customize the look and feel of your invoice template and design it in the sync with your business look. Some other features that might be helpful to you are invoice scheduling, late fee option, time tracking and expense management. Invoicera is the complete invoicing app that is helpful for every business. You may check the application at http://www.invoicera.com

  • http://www.sahhosting.com hosting

    What do you get for free from each one? Who gives the best customization?

  • http://playhousewithkitchen.blogdetik.com Playhouse with kitchen

    Wow this post was a lot of work! Thanks

  • http://www.orologic.com/ Jack

    Nice post!
    I would like to recommend OroTimesheet for time tracking and invoicing. I love it.

Subscribe
Membership
About the Author