The good old days weren’t so good for us freelancers, who had to issue hand-written invoices or use the old ways of word processor-generated invoices. The era of creating invoices and sending them by mail is coming to an end. Ditching the old traditional ways doesn’t only mean that we don’t have to keep printed records for every work, financial transactions, and email or mail we sent, but it also means that we get to make use of the many offered perks technology offers us. Cloud-based invoicing and billing software and templates are offering many benefits to freelancers and any small business owner that can change forever the way we handle our business.
What Is Cloud Accounting?
To understand the importance of templates and the convenience they can offer us, we need to understand “cloud accounting” and the benefits this technology has provided us with. This term summarizes the use of clouds or book-keeping software to keep track of finances. Simplifying boring administrative processes that usually take forever to master is one of the main priorities for freelancers to save time, which consequently saves us money. Other than making our lives much easier, this software reduces the chance for errors and typos we don’t have to look out for anymore. If you are dealing with clients from different countries, chances are, you spend enough time keeping track of the changes in currency rates. In fact, calculating VAT and keeping track of currency rates are the two main reasons people tend to make mathematical errors when they are keeping track of their invoices. One of the best features that cloud invoicing offers is the ability to do both instantly with zero errors.
Why Templates Are Changing The Game?
Just when we thought technology couldn’t get any better, and by the time we are still trying to wrap our heads around how awesome cloud invoicing works, cloud invoicing templates popped up to completely change the game. In freelancing, your own name is your brand. That’s why you need to be extra careful with every document you send out; the way you present yourself is what differentiates the amateurs from the professionals. Your invoices should leave an impression that should never be underestimated or taken lightly. Luckily, nowadays we can just choose the right invoice template type and design, add our details, and that’s basically it. Being careful with invoices and paying attention to every small detail can do wonders for the nourishment of your business due to the power our invoices hold in showing a reflection of your identity as a businessman.
Different Types Of Invoices
Invoicing is the process of stating the provided service, how much it’s for, and the due date for the payment. Regardless of the invoice type, there is some information that should always be included, and in templates is probably already there. These are the invoice issue date, your business contact information, the client’s contact information, the invoice number, payment terms, and the total amount. While there might be some unchangeable sections in any invoice, there are different invoice types to serve different purposes, and you can find a saved professional template for each one. Here are some of the main invoice types and their purposes.
Pro Forma Invoice
This invoice is created to give a cost estimation for the service you will provide. This is not considered to be a demand for the payment, and it’s mostly sent before the work is even complete.
This one is used for milestone payment. When you are faced with a big project that you need to break down into milestones, you can issue this invoice to be paid in some sort of an installment plan upon the crossing of every milestone.
As the name might give away, this is the invoice that is usually sent upon the completion of the project as a request for the agreed price.
The other three types of invoices aren’t that common except among professional freelancers. The most common among the three is the recurring invoice which is sent monthly or every agreed period of time as a request for the amount due for an ongoing service you provide. There is also the past due invoice which is usually sent after the failure of payment to add interest or extra fees for the overdue amount. The last one is more of a memo to state that you owe client money along with the exact credit amount to be documented for any future financial transactions.
Perks Of Choosing Cloud Invoicing Templates
Your invoices are considered to be the first and the last interactions between you and your clients. Other than leaving a great first and last impressions by presenting yourself and your brand professionally, there are other great benefits that this technology has managed to provide us with.
- The professional outlook your invoices give might be the reason clients refer you to other potential customers, which will subsequently grow the business you are trying to build for yourself.
- You will be able to customize these templates easily to match your needs. Steering away from free templates will allow you an endless number of customization options that you can use to add your company name or logo.
- Not only do invoice templates save your money, but they also save time and effort with the greatest advantage cloud invoicing can offer. With automation, you will be able to send invoices for long-term clients in little to no time.
Embracing the digital way of doing business will give us the chance to bloom. After all, when time is of value, we need every minute we can get. Using invoice templates is simple, efficient, and saves both money and time. Not to mention, there is a lot of great customization options. It’s a step we should all take to properly handle our business finances. As freelancers, time is money, so freeing up the extra time we spend caring for these issues will give us enough space and the peace of mind to be able to focus on the work we know how to do best.