An invoice payment is money actually paid as part or all of the total invoice amount indicated on an invoice.

If you receive an invoice, you are expected to pay it. This amount is the invoice payment.

In this article, we’ll cover two perspectives on the invoice payment:

  1. The payer
  2. The invoicer

What’s an Invoice Payment from the Payer’s Perspective

When you receive an invoice you are being told you owe money for goods or services.

If you hire me to write for your website, I’ll send you an invoice before, during or after the work is completed. This invoice indicates the total invoice amount you owe me.

It also prompts you to make an invoice payment of that amount.

The invoice also contains valuable information about how and when you should make that payment, including:

  • Due date: When the invoice payment is due by. This could be anything from “Upon Receipt” or “Immediately”, to 30 days later.
  • Payment terms: The terms of invoice payment. The payment terms often restate the due date and adds information regarding late fees or penalties for late invoice payments.
  • Payment method: An invoice will often state how the invoicer expects to be paid. That could be by check, money transfer, credit card etc. If they’re using a professional invoice template, online payments might be enabled. 

Making an invoice payment online makes it easier for you to pay invoices promptly. It also helps you manage your cash flow better as your bank balance reflects immediately the outgoing payment. 

With checks, there can be delays with mail and cashing checks that mean the invoice payment can hit your books in a different month than it was made. This sometimes makes bank reconciliation and accounting frustrating.

What is an Invoice Payment from the Invoicer’s Perspective?

If you’ve sent an invoice your main purpose is to get paid. Maintaining your financial records is a secondary benefit. Basically, you’re all about the invoice payment.

It’s the amount your client owes and is expected to pay you.

For many freelancers and small business owners, this easy final step in a project can prove to be frustrating. Why? Some of the reasons an invoice payment can be delayed

  • Errors on your invoice: Make a mistake on your invoice and your client will likely not pay you until the invoice has been corrected and resent. To avoid making pesky mistakes, consider using a professional invoice template
  • Disputed invoice amount: Sometimes clients are shocked by the invoice amount. Maybe they didn’t realize they had scope-creeped the project or you had put in so many extra hours.Two things you can do to make sure the invoice amount matches your client expectations:
    1. Provide an estimate at the start of the project
    2. Communicate early and often when the costs are climbing
  • Unclear due date: Don’t forget to specify the due date. If you say it’s 6 months from today, don’t be surprised if you’re waiting 6 months for that invoice payment!
  • Soft payment terms: If your payment terms are wishy-woshy or don’t explain penalties for late payment, your clients will prioritize other invoices first. To make sure your invoice is top of the payment pile, be crisp about your terms!
  • Inconvenient payment method: Nobody wants to write checks any more. Clients expect the ease and convenience of online payments. But make sure the payment method works for them. If you limit, e.g. certain credit cards, you might see delays in payment. Think about what’s easy and convenient for them and you’ll see that invoice payment sooner.

Invoice Payments: Make It Easy for Everyone!

At the end of the day, an invoice should be “finishing touch” on working with a client. 

An invoice should be:

  • Accurate: All fields are correctly filled. No errors or typos.
  • Prompt: The invoice is sent immediately after work is complete.
  • Professional-looking: The invoice looks good, using your logo and brand colors and it’s easy to read and digest.
  • Easy to pay: The invoice has convenient options for making payments, including online payments.
  • Motivating: For those clients who will sometimes hold out on making an invoice payment, there’s a little motivation… such as late fees!

Using a professional template makes it easy to stay on top of invoicing and create accurate, slick-looking invoices. A small investment in the right tool will keep those invoice payments coming your way!

Although nobody loves parting with cash, clients will respond better to invoices that make their part easier. If they were happy with your service and you make their life easy, making an invoice payment will be a cinch!