Agency Invoicing Best Practices: Get Paid Faster, Maintain Relationships
Good invoicing practices accelerate cash flow while maintaining professional relationships. Here's how to do it right.
Invoice Timing
Milestone Billing
- Invoice at agreed milestones
- Clear in contract
- Prompt when milestones reached
Progress Billing
- Monthly for ongoing work
- Consistent date each month
- Detailed activity summary
Project Completion
- Invoice promptly upon delivery
- Include final deliverable summary
- Don't delay
Invoice Components
Required Elements
- Clear invoice number
- Date and due date
- Detailed line items
- Payment terms
- Payment instructions
Helpful Additions
- Project reference
- Work period
- Deliverable summary
- Contact for questions
Payment Terms
Standard Terms
- Net 30 (most common)
- Net 15 (faster payment)
- Due on receipt (immediate)
Encouraging Faster Payment
- Early payment discounts (2% Net 10)
- Late payment penalties (stated clearly)
- Multiple payment options
Overdue Follow-Up
Week After Due
- Friendly reminder email
- Assume oversight
- Make payment easy
Two Weeks Overdue
- Direct follow-up
- Ask about issues
- Confirm receipt
Month Overdue
- Escalate contact level
- Discuss payment plan if needed
- Consider work pause
Common Invoicing Problems
Disputed Invoices
- Respond promptly
- Document everything
- Resolve then invoice
Missing Approvals
- Invoice what's approved
- Clarify pending items
- Follow up on approvals
Client Process Issues
- Understand their AP process
- Provide required documentation
- Make compliance easy
Conclusion
Invoicing is a critical business function that deserves attention. Invoice promptly, professionally, and follow up consistently. Strong invoicing practices support healthy cash flow and professional relationships.
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