For small businesses, getting paid quickly is easier said than done. One of the best ways to send invoices and get paid faster is to email a tax invoice as soon as you finish the work. Making sure you provide quick delivery, clearly state payment terms, and use automated follow-ups is one of the best ways to get your invoices paid and improve cash flow.
Let’s dive in and show small businesses how to send an invoice, what to include, how to prevent payment delays, and more.
What are the two types of invoices?
There are two main types of invoices: tax invoices and regular invoices. Which one you send depends on whether your business is registered for goods and services tax (GST).
If you are registered for GST, you must issue a tax invoice. A regular invoice is used by businesses not registered for the goods and services tax. A third, less common type is a recipient-created tax invoice, where the buyer sends the invoice to the seller; though this is only allowed in certain industries per the Australian Taxation Office.
What should you include on an invoice?
A good invoice should be clear and contain all legally required information to avoid any processing delays. Every invoice should include the following:
- The word “invoice” clearly visible, plus a unique, sequential invoice number for easy tracking.
- Your business name, ABN and contact details.
- Your client’s business name and their contact details.
- The invoice date and the payment due date.
- An itemised breakdown of line items — a description of goods or services, with quantities, unit prices, and totals to avoid customer disputes.
- The total amount due, including any applicable taxes like the GST amount, as well as your bank account details or payment links.
For a tax invoice, the total price must show whether or not it includes GST. For sales over $1,000, you have to include the buyer’s identity or ABN. A professional invoice is more than just a piece of paper — it’s a valuable business record for things like tax and GST credits.
Should you use an invoice template or software?
You can create invoices with a custom invoice template or with invoicing software. A template works for low volumes, but software is faster and more reliable as you expand.
Invoicing software streamlines the invoicing process by automatically generating invoice numbers, populating client and payment details, calculating totals and more, compared to an invoice template.
The result? Less manual data entry and the ability to create professional invoices in just a few clicks.
How do you send an invoice?
Email delivery is the fastest and most reliable way to send invoices. Make sure all invoice details and business information are correct before hitting send. Email greatly lowers overheads compared to paper invoices.
Send the invoice as a PDF attachment with a relevant subject line and the invoice number. Some businesses also send a payment link by text message so the customer pays immediately.
Sending the invoice to the customer straight after the job is finished will keep your cash flow moving. Registering for eInvoicing through the ATO network is another secure delivery method for digital invoices.
Whatever method you choose, send invoices as soon as possible upon completion of work. The sooner you invoice the customer, the sooner the payment process can start.
How do you set payment terms to get paid faster?
Establish payment terms upfront to avoid any confusion over billing schedules and payment expectations. Include the due date and accepted payment methods on every invoice.
Familiarise yourself with payment terms like “net 30” and “due upon receipt.” Good communication of your payment terms in contracts can prevent late payments before they start. State your terms in writing so both you and your customer are on the same page.
Providing multiple payment options will also facilitate quicker payments. Accept online payments, bank transfers, debit cards, PayPal invoicing, Apple Pay, and Google Pay. A secure link (aka payment) link lets the customer process payment in seconds.
How do you follow up on overdue payments?
Nearly half of invoices are paid late. Following up on overdue invoices is essential to stop late payments from turning into a habit.
Send a polite reminder the day after the due date for any unpaid invoices. If payment is still outstanding, follow up again a week later with a firmer notice. Quick communication should resolve most issues and keep your customer relationships positive.
Automated invoice reminders help you manage payment collection without the stress of manual follow-ups. They send pre-written payment reminders on due dates and escalate the issues that need personal attention.
Ultimately, this keeps communication consistent whether a customer asks about an invoice or disputes a charge.
What are best practices for invoicing?
The best practices for invoicing are:
- Send invoices as soon as work is done — don’t wait until the end of the month.
- Monitor outstanding invoices and track invoices by payment status so you always know what’s owed.
- Set up recurring invoices for regular clients to save time and minimise payment delays.
- Keep accurate business records for every invoice (for both tax compliance and record-keeping).
- Use payment milestones on large projects so you get partial payments as work progresses.
Use accounting software to manage invoices, track payments, store your financial data securely, and automate your entire invoicing process.
The faster and clearer your invoices, the faster you’ll get paid – and the more time you can spend running your small business instead of chasing payments.
