We all want to get paid for the hard work we do.
Cheques can be lost, so it’s not a good idea to pester clients about late payments. Invoicing your clients is a difficult task, regardless of how large the project is.
You’re already busy managing your time, keeping track of trade partners, and keeping costs down. Because you don’t have any time to waste, you need to find a solution to invoice your client that is both easy and efficient.
These tips will help make construction billing easy, reduce the need to follow ups, and ensure that you get paid on-time.
1. Be clear about your expectations for your construction invoices
Determine the billing method for your project. There are several invoicing options: progress payment, payment plans, construction estimates, or a bill from the change orders or selections sheet. However, the cost estimates are calculated. Make sure you and your client both know the payment terms.
Conflict in the construction industry is often caused through miscommunication. Get to know your clients. Establish payment guidelines. It is important to be clear about deadlines and payment methods, as well as the contact methods. While you may want their business, it is important to avoid losing money with unreliable clients.
Keep track of the adjustments you make as the construction progresses. This will keep surprises to a minimum. You can ensure that your client does not miss any sections of the invoice and is less likely be surprised.
2. Create construction invoice templates
It is important to be as clear and concise as possible when creating construction invoices. To make sure your client understands what your construction invoice is at a glance, ensure that “invoice” is at the top. Include important information such your contact information, that of your client, and an invoice number.
Invoices should include all services, materials, and the final amount to be collected. It’s okay to only invoice for a portion of the job. Don’t be afraid to communicate.
Using a template reduces the time spent on creating bills for similar jobs. If you are using the same materials over and over again, charging the same amount per job, using a template helps to reduce the time it takes to create bills for each job.
3. Establish online payments
Make it easy for clients to pay you. An electronic method of payment cuts down on the need to make a cheque. To get paid in construction companies, it is important to schedule time to meet in person.
You can send reminders to ensure that payment is received before the deadline. You may feel like you’re being annoying, but it’s okay to remind your client. It is important to inform your client at least seven days before payment.
Record all communications when you contact a client regarding payment. If necessary, remind your client of payment arrangements and let them know.
4. Get real-time construction invoice reports
It is vital to know where you stand financially in a construction project. It generates real-time cash flow reports to show you where your financial position is during a build. This allows you the flexibility to adjust your budget as needed.
While time savings and customer service are important, it’s also crucial to understand where you stand at end of each month.