How to Properly Manage Your Invoices

When it comes to accounts receivable systems, it’s important that you can at any time identify who owes you money, when it’s due, how much is owed, and for what services or products. Since you’re using Wave, you can create invoices through their invoicing system. Alternatively, what I do with my clients is use Zapier to connect their Stripe account to their accounting software. This way, when they create an invoice, it automatically populates in their books.

From there, you can run an accounts receivable aging summary to show outstanding invoices and who still owes you.

You also need to ensure you’re keeping a PDF copy of the invoices you create, whether in a folder on your Google Drive or as a file somewhere on your computer, so you have evidence of the transaction.

Payment Terms and Conditions

• Setting Clear Payment Terms: It’s crucial to define payment terms (e.g., Net 30, Net 60) in your invoices. This helps set expectations with clients and ensures timely payments.
• Late Payment Policies: Consider including a policy for late payments, such as charging interest or late fees, to encourage prompt payment.

Following Up on Invoices

• Automated Reminders: Set up automated reminders through invoicing software like Wave or Stripe to nudge clients about upcoming or overdue payments.
• Personal Follow-ups: Don’t underestimate the importance of personally following up on overdue invoices. It helps maintain good client relationships while ensuring you get paid.

Invoice Numbering and Organization

• Unique Invoice Numbers: Always use unique, sequential invoice numbers for better tracking and organization.
• Organizing Invoices: Keep your invoices organized by client or project in Google Drive or Notion for easy access and record-keeping.

Customizing Invoices

• Branding Your Invoices: Customize your invoices with your business logo, colors, and contact information to make them look professional and consistent with your brand.
• Detailed Descriptions: Always include detailed descriptions of the services provided or products sold to minimize confusion and disputes.

Integrating Invoicing with Accounting

• Automation: Automating the integration of invoicing with your accounting software (like using Zapier to connect Stripe with Wave) can save you time and reduce errors in your financial records.