What Are the Different Types of Invoices That Businesses Use Today?
Are you aware that the average American business owner earns around $70,300 each year?
Whether you’ve reached that figure yet or you’re still striving toward it, it’s important to send out professional invoices. Without them, it’s much harder to get paid on time and in the right amount, assuming you get paid at all.
Are you wondering how to do it and what it involves? Keep reading to learn all about the different types of invoices that businesses use today.
Recurring Invoices
As a small business owner, you can save time and avoid headaches by investing in a recurring invoice. This type of invoice is perfect for customers who are getting a regular service or product from you.
Instead of having to fill out the invoice over and over, you can rely on the recurring one. Before you do that, don’t forget to have the best invoice template on hand.
Pro Forma Invoices
When it comes to custom invoices, the pro forma invoice acts like a pre-invoice. This goes a long way toward avoiding any miscommunications because it’ll list the products and services and their total value.
These invoices can work great when demonstrating the value of free gifts you give to your loyal or potential customers as well.
Past Due Invoice
Business ownership can be rough sometimes, especially when clients don’t pay their invoices on time. There are some situations in which it’s necessary to send out a past due invoice.
This should go out the day after the original invoice’s deadline. This gives you the opportunity to remind the client and also add any late fees if applicable.
Interim Invoice
Have you ever worked on a vast project for a client? Instead of hitting them with an equally vast bill before or after the project’s completion, you can use a set of interim invoices.
These can break up the total payment into smaller chunks that allow the client to pay what’s owed over time rather than in a large lump sum.
Credit Invoice
Mistakes happen. If there was an accounting error on your part, then a credit invoice can let a client know of any corrections you’ve made.
Otherwise known as a credit memo, credit invoice can also outline any discounts or refunds that you’ve given to your client. They’re sure to appreciate seeing how much they’ve saved.
Are You Ready to Use Different Types of Invoices?
Now that you’ve learned all about the different types of invoices that businesses use today, you can make sure your brand looks as professional as possible. You can also ensure that clients pay you what you’re owed instead of getting the amount wrong or other mistakes.
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