#Top 10 Invoicing Tips for UK Tradesmen in 2024

Getting paid on time is crucial for any tradesman. Whether you're a plumber, electrician, builder, or decorator, professional invoicing can make the difference between a thriving business and cash flow problems. Here are our top 10 invoicing tips to help you get paid faster and manage your finances better.

#1. Invoice Immediately After Job Completion

Don't wait days or weeks to send your invoice. The best time to invoice is immediately after you complete the work, while the job is fresh in your customer's mind and they're happy with the results. This significantly increases your chances of getting paid quickly.

Pro tip: Use a mobile invoicing app so you can create and send invoices on-site, right after finishing the job.

#2. Include All Required Information

A professional invoice should include:

• Your business name and contact details
• Customer's name and address
• Invoice number (unique and sequential)
• Date of invoice
• Description of work completed
• Itemised breakdown of costs
• VAT amount (if VAT-registered)
• Total amount due
• Payment terms and due date
• Payment methods accepted

Missing information can delay payment while customers request clarification.

#3. Use Clear Payment Terms

Always specify your payment terms clearly. Common terms include:

• Net 7 - Payment due within 7 days
• Net 14 - Payment due within 14 days
• Net 30 - Payment due within 30 days
• Payment on receipt - Immediate payment required

For smaller jobs, consider requesting payment on completion or within 7 days to improve cash flow.

#4. Make It Easy to Pay

Offer multiple payment methods:

• Bank transfer (include your sort code and account number)
• Card payments (via Stripe or similar)
• Cash (for smaller amounts)
• Cheque (though less common now)

The easier you make it to pay, the faster you'll receive payment.

#5. Send Professional, Branded Invoices

Your invoice represents your business. A professional, branded invoice with your logo builds trust and shows you're serious about your business. It also makes your invoice stand out in a customer's inbox.

#6. Follow Up on Overdue Invoices

Don't be afraid to follow up on overdue invoices. Send a polite reminder email or make a friendly phone call. Most customers simply forget to pay, and a gentle reminder is usually all that's needed.

Suggested follow-up schedule:

• Day 1: Invoice sent
• Day 7: First reminder (if not paid)
• Day 14: Second reminder
• Day 21: Final notice before considering legal action

#7. Track Your Invoices

Keep a record of all invoices sent, their due dates, and payment status. This helps you:

• Identify late payers
• Track your cash flow
• Prepare for tax season
• Follow up on overdue payments

Use a job management app or spreadsheet to stay organised.

#8. Consider Offering Early Payment Discounts

For larger invoices, consider offering a small discount (e.g., 2-3%) for payment within 7 days. This can incentivise faster payment and improve your cash flow, even if you receive slightly less money.

#9. Be VAT Compliant

If you're VAT-registered, ensure your invoices comply with HMRC requirements:

• Show your VAT registration number
• Display VAT amount separately
• Show net and gross amounts
• Use the correct VAT rate (20%, 5%, or 0%)

Non-compliance can result in penalties and complicate your VAT returns.

#10. Use Digital Invoicing Software

Modern invoicing software can automate many of these tasks:

• Generate professional invoices instantly
• Track payment status automatically
• Send automatic reminders
• Accept online payments
• Generate reports for accounting

This saves time and helps you get paid faster.

#Conclusion

Professional invoicing is essential for any successful trade business. By following these tips, you'll improve your cash flow, get paid faster, and present a more professional image to your customers. Remember, the goal is to make it as easy as possible for customers to pay you promptly.

Start implementing these tips today and watch your payment times improve!

Looking for an easy way to create professional invoices? TradePlanr helps tradesmen create and send invoices directly from their phone, track payments, and manage their business on the go.