Invoicing a Client – The Performer's Guide

An invoice is a document that a business sends to a customer requesting payment for products or services that have been provided. An invoice typically includes the following information:

✅ The name and contact information of the business issuing the invoice
✅ The name and contact information of the customer
✅ A unique invoice number
✅ A description of the products or services provided
✅ The quantity and price of each item or service
✅ The total amount due
✅ The payment terms (e.g. the due date for payment)

Invoices are typically used in business-to-business transactions, but they can also be used in business-to-consumer transactions. They serve as a record of the sale and can be used for accounting and tax purposes. The payment terms for an invoice are typically agreed upon by the business and the customer before the products or services are provided. Payment terms can vary, but common options include:

📆 Net 30: Payment is due 30 days after the invoice date
📆 Net 60: Payment is due 60 days after the invoice date
📆 Net 90: Payment is due 90 days after the invoice date

In some cases, the payment terms may be “due on receipt,” which means that payment is due as soon as the customer receives the invoice. It’s important to clearly communicate the payment terms to the customer so that there is no confusion about when payment is due. If the payment terms are not met, the business may charge late fees or interest on the outstanding balance. There are several risks associated with not sending an invoice to a client after completing work:

⚠️ The client may not realize that they owe you money and may not pay you. This can lead to difficulties in collecting payment and may damage your professional relationship with the client.
⚠️ If the client disputes the charge, you may have difficulty proving that you completed the work and are entitled to payment if you do not have an invoice.
⚠️ Not sending an invoice can create confusion and may make it more difficult to track your income and expenses.
⚠️ If you are working as a freelancer or contractor, failing to send invoices can make it more difficult to demonstrate that you are running a legitimate business, which may have tax implications.

Benefits of an Invoice:

An invoice is a document that is used to request payment for goods or services. There are several benefits to using an invoice:

📝 Provides a Clear Record of the goods or services that have been provided, as well as the cost of those goods or services. This can be helpful in the event of a dispute or misunderstanding.
📝 Track Expenses: Allows recipients of goods or services to easily track their expenses and budget accordingly.
📝 Establishes professional relationships between the seller and the buyer.
📝 claim tax deductions or credits for business-related expenses.with invoices
📝 It helps to ensure payment is received in a timely manner.

Failure to Send Invoice:

It is important to send invoices to clients as a way of clearly communicating the terms of your agreement and ensuring that you get paid for the work you have completed. There are several things you can do to increase the chances of getting paid if you fail to send an invoice in a timely manner:

✅ Follow up as soon as possible: Send the invoice as soon as you realize it was not sent in a timely manner, and follow up with the client to ensure that they received it and are able to process payment.
✅ Offer a discount for prompt payment: You could consider offering a discount for prompt payment to incentivize the client to pay the invoice quickly.
✅ Use payment reminders: Set up payment reminders or automatic payment notifications to ensure that the client is aware of the outstanding invoice and when payment is due.
✅ Consider using a collection agency: If you are unable to collect payment from the client after making multiple attempts, you may need to consider hiring a collection agency to help recover the outstanding funds.
✅ Review your invoicing process: Finally, you may want to review your invoicing process to identify any bottlenecks or issues that may be causing delays in sending invoices. This could help prevent similar issues from occurring in the future

Taking someone to small claims court is a potential option if you are unable to collect payment from a client or customer after making multiple attempts. However, it’s important to consider whether the time and effort involved in pursuing legal action is worth the amount of money you are trying to collect. If the amount is relatively small, it may not be worth the effort and cost of going to court.

Failure to Pay:

Before pursuing legal action, you should try to communicate with the person or business that owes you money to try to resolve the issue.

✅ Send a letter demanding payment to the address listed on your contract.
✅ Hire a collection agency to try to recover the funds
✅ Take the matter to small claims court.

Small claims court is generally a faster and less expensive way to resolve disputes than filing a lawsuit in civil court. However, the decision of the small claims court is final, and you will not be able to appeal the decision if you are not satisfied with the outcome.

Small Claims Court

The financial minimum to file a small claims case varies by state. In general, small claims court is a faster and less expensive way to resolve disputes involving relatively small amounts of money. In most states, the financial limit for small claims court is between $2,500 and $25,000.

✅ Pay the Fees: To file a small claims case, you will typically need to pay a filing fee, which varies by srate.
✅ Follow the Procedures for filing a claim in your state. The specific requirements and procedures vary by state, so it’s a good idea to check with your local small claims court or conduct online research to find out the specific requirements in your state

Collecting a Settlement:

If you are awarded a judgment in a small claims court case, there are several steps you can take to try to collect the settlement money you are owed:

💸 Send a demand letter: You can send a demand letter to the person or business that owes you money, stating the amount of the judgment and demanding payment.
💸 Garnish wages: If the person or business that owes you money is employed, you may be able to garnish their wages to collect the judgment. This involves obtaining a court order directing their employer to withhold a portion of their wages and pay it to you.
💸 Place a lien on property: You can place a lien on any real estate owned by the person or business that owes you money. This means that if they sell the property, the proceeds from the sale will be used to pay off the judgment.
💸 Seize assets: If the person or business has assets that can be seized, such as a bank account or vehicle, you may be able to have them seized to satisfy the judgment.
💸 Collection agency: If you are unable to collect the judgment on your own, you may want to consider hiring a collection agency to help recover the funds.

It’s worth noting that these options may not be available in all cases, and you may need to seek legal assistance to pursue them. Additionally, the process of collecting a judgment can take time and may involve additional legal fees