Sending invoices may seem mundane and repetitive, but it is crucial for keeping your company’s cash flow steady. If you are an accounts receivable (AR) analyst, you know the challenges of managing this process efficiently.
You are not alone if you have ever wondered about the most efficient way to manage this process. Many AR teams in startups or established enterprises face challenges handling invoices effectively and ensuring timely payments.
Switching to electronic invoicing (e-invoicing) offers a more reliable, convenient, and secure way to handle transactions. While serving the same function as traditional invoices, e-invoices are legally equivalent. However, they have added advantages, such as faster invoice status tracking and automatic payment reminders, making them an essential resource for modern businesses.
In this guide, you will explore how to send an invoice via email, making it a breeze for you and your customers. By the end, you will master a process that is not only straightforward but also ensures timely payments. Let us dive in and simplify your billing!
What is an Invoice Email?
An invoice email is a digital communication sent to a customer that includes a detailed bill for products or services provided. Unlike traditional paper invoices, automated emails streamline billing, allowing businesses to send and track payments more efficiently.
They are particularly valuable for AR teams managing multiple transactions, as they help maintain clear communication and reduce delays in payment recovery.
In addition, the global e-invoicing market hit US$13.5 billion in 2023, reflecting how businesses worldwide are increasingly adopting this technology. Looking ahead, it is expected to grow to US$60.9 billion by 2032, with a projected CAGR of 17.7% from 2024 to 2032. This trend shows that digital invoicing solutions are set to become even more integral for businesses in the coming years.
7 Key Elements of Your Invoice Emails
When structured correctly, e-invoices create a seamless experience for both the sender and the recipient. Your invoice email should include several key elements.
Here are the seven most essential ones.
1. Business Branding
Add your brand’s logo, color scheme, and visual elements to the invoice email. This projects a polished, professional image and strengthens your brand identity. This is a great way to ensure the customer recognizes and remembers your company with every interaction.
2. Contact Information
Include all the necessary details, such as your business name, address, phone number, email address, and other relevant information. This ensures customers can quickly contact you for inquiries, making the payment process hassle-free. Also, be sure to add complete customer information, including the customer’s name, address, and contact details.
3. Invoice ID
Always include an invoice ID or number to keep track of each transaction. When learning how to send an invoice for payment, having a unique identifier is essential, as it helps both you and your customer refer to the specific invoice in case of any queries. The ID can be a mix of numbers, letters, or both.
4. Detailed List of Products or Services
Provide a clear and itemized breakdown of your products or services, such as item price, quantity, taxes, and discounts. This transparency ensures customers understand what they are being billed for, reducing potential misunderstandings.
5. Due Date
Always specify a due date on your invoice. Customers may delay their payments without this, leading to potential cash flow management issues. A precise due date sets expectations and encourages timely payments.
6. Amount Due
Highlight the total amount your customer owes. This figure is one of the most critical elements of your invoice, as it informs your customers precisely what they need to pay.
7. Accepted Payment Methods
List all the different payment methods your business accepts, such as electronic fund transfers (EFT) or credit cards. If there are any restrictions (e.g., not accepting certain cards), ensure this information is prominently stated.
Step-by-Step Guide on Sending an Invoice Through Email
Now that you know what to include in your email invoice, it is time to ensure you send it correctly. The best way to send an invoice is to use automated invoicing software. So, let us tell you the easiest way to send an invoice without making errors in just three steps.
Step 1: Create an Invoice
As an AR analyst, you must manage your company’s finances precisely. Mastering the process of creating accurate invoices ensures smooth and efficient financial transactions.
1. Use an Invoice Template for Quick Setup
Using a template will prepare a professional invoice in minutes, helping you effortlessly manage how to send an invoice through mail. Templates from tools such as Microsoft Office or Google Docs offer a structured layout, making filling in your business details, services provided, and payment terms easy.
Using such tools makes it easier to create invoices by giving you a ready-made format, so you do not have to adjust things like cell blocks and headers. It helps you make professional invoices quickly and send them by mail.
However, if an AR team has to handle a lot of invoices, like 100+ each month, this method can be slow and might lead to mistakes. Doing it manually takes time and does not work well with growing transactional volume.
Invoice automation solves these problems by automatically creating, sending, and tracking hundreds of invoices without the need to do it manually.
2. Use Invoicing Software for a More Efficient Workflow
Consider using dedicated invoice software to improve your account receivable process. These tools allow you to quickly create branded invoices and provide additional features such as tracking payment status and managing outstanding balances.
With advanced invoice software, you can consolidate all your invoices in one place, making it easier to monitor invoices, track overdue payments, and maintain a consolidated system. This method speeds up your billing process and helps you stay on top of your finances without the hassle of manual data entry.
Step 2: Prepare Your Attachment
After creating your invoice, you need to take a few more steps before you can send it off.
For Invoice Software: Invoice software automatically configures a template during setup, eliminating the need to create or save templates manually. Each software has its own way of doing this, so you must familiarize yourself with the platform’s specific process. Check out the software’s user guide or tutorials to better understand how to manage this effectively.
Step 3: Attach It to Your Email
Once you have created your invoice and saved it as a PDF, you can begin crafting the email accompanying it.
Here is how to attach your invoice with a clear subject line:
- Start by logging into your chosen email platform.
- Click the option to create a new email—this is usually labeled “Compose” for Google and Yahoo or “New Message” for Outlook.
- Write a clear and concise subject line, such as “Invoice [Invoice Number] for [Service/Project].”
- Click the paperclip icon (the “Attach file” button) to add your invoice.
- Navigate to the folder where you have saved your invoice on your computer.
- Double-click the file to attach it to your email.
Following these steps ensures that your invoice is attached correctly and presented professionally.
Benefits of Using Email Templates With Examples
Email templates save time, especially when sending frequent invoices to the same customers. Instead of drafting a new message each time, templates ensure all essential details are included consistently.
Templates allow easy personalization, adding customer-specific information such as currency and taxes. This approach reduces the time spent on invoicing, making it quick and efficient, even for high-volume billing.
Let us give you some examples of Email Invoice templates.
Template 1: Email Invoice
Subject: Invoice [Invoice Number] – [Product/Service] Provided Hi [Customer Name], I hope you are doing well. Please find your invoice [Invoice Number] attached for the [product/service] provided recently. The total amount due is [Total Amount], and payment is kindly requested by [Due Date]. The payment options are on the invoice for your convenience. If you have any questions or need assistance, feel free to contact us. Thank you for your prompt attention to this matter. Best regards, [Your Name] [Your Contact Information] [Your Company Name] |
Template 2: Missed Payment Reminder
Subject: Payment Reminder: Invoice [Invoice Number] Overdue Hello [Customer Name], I wanted to remind you that payment for invoice [Invoice Number] was due on [Due Date]. The total outstanding amount is [Total Amount]. Please let us know if there have been any issues or if you need more time. We understand that delays can happen, and we are here to assist. Kindly arrange the payment at your earliest convenience, and if it has already been processed, feel free to ignore this message. Thank you for your cooperation. Warm regards, [Your Name] [Your Contact Information] [Your Company Name] |
Template 3: Legal Action Notice for Overdue Payment
Subject: Urgent: Final Notice for Overdue Invoice [Invoice Number] Dear [Customer Name], We are reaching out regarding invoice [Invoice Number], which remains unpaid despite our previous reminders. The outstanding amount is [Total Amount], and it is now [Number of Days] days overdue. We kindly request that you clear this payment within [Number of Days, e.g., 7 days] to avoid further action. Please understand that we may be forced to initiate legal proceedings or engage a collection agency if we do not receive payment by this time. If you have any concerns or want to discuss this matter, please get in touch with us as soon as possible. Sincerely, [Your Name] [Your Contact Information] [Your Company Name] |
Are you looking to speed up your payment collection process? Download our customizable templates below to get started!
What Are The Best Practices for Sending an Email Invoice?
Your invoice must communicate seamlessly with the recipient, who must clearly understand what they are paying for. Following best practices speeds up payments and leaves a positive impression on your business.
1. Maintain Professionalism
Always maintain a professional tone, even when dealing with late or ignored invoices. It is natural to feel frustrated if a customer does not respond to the first or second invoice, but keeping a courteous and respectful approach demonstrates your business’s reliability and integrity.
2. Use a Clear Subject Line
Crafting a clear subject line is crucial when sending your invoice via email. It ensures your customer immediately understands the purpose of the email. If the subject line is not explicit, there is a risk the email might be overlooked or even deleted.
3. Include Your Contact Details
Always provide your contact information in your invoice email. If a customer has questions or needs to clarify something, having your phone number, email address, or other contact details readily available makes the process much smoother.
4. Personalize Each Email
Avoid sending generic or impersonal invoices. Personalizing your emails with the customer’s name, company, or project details helps build rapport and tailor communication. This extra touch makes a big difference and shows that you value their business.
5. Send the Invoice Promptly
Timing is everything when sending invoices. Send them when your service is completed, or the product is delivered. This gives your customer ample time to process the payment. Provide clear payment terms, for example, seven days after receiving the product or service or 30, maybe 45. It entirely depends on your business type. It sets the right expectations and encourages timely payment.
6. Keep the Message Simple
Your invoice email does not need lengthy explanations or complex language. Keep it straightforward and concise, ensuring your customer can easily understand the details.
7. Be Transparent
Transparency is vital when you are learning how to send an invoice. Make sure all charges are clearly stated, with no hidden fees. This level of honesty builds trust and reassures customers that they are dealing with a reputable business.
8. Proofread Before Sending
Nothing undermines professionalism faster than an invoicing error which can give rise to invoice disputes. Review your invoice email for mistakes to present your business in the best possible light.
3 Effective Strategies for Managing Overdue Payments via Email
You may not receive the payment even after sending a flawless invoice with clear instructions. These are called overdue payments, and you need to deal with them proactively. Here is how to handle such situations.
1. Check for Any Invoicing Errors
Although the chances are very low, especially when using an automatic invoicing system, it is better to recheck the invoice you sent. Make sure that there are no mistakes or confusing directives from your side.
2. Professional Follow-Ups
Follow up with another reminder email on the actual due date, emphasizing the importance of meeting the payment deadline. Sometimes, customers genuinely forget about an overdue invoice. It is important to follow up promptly and professionally when payments are late.
When reaching out, be ready with the invoice number to help your customer locate it quickly. Including a clear subject line such as “Payment Reminder for Invoice [Invoice Number]” makes it easy for them to identify the reason for your communication.
Remember to keep a record of all interactions regarding payment requests. Document every reminder and your conversations’ dates, times, and details.
3. Managing Late Payment Consequences
To minimize the chances of unpaid or late invoices, consider implementing a late fee policy and communicating this in your payment terms. Such account receivable strategies can motivate customers to settle their invoices on time.
You might also include terms that allow you to pause your services until the outstanding balance is cleared. While this can be a practical approach, be prepared that it might impact your relationship with the customer, even if they understand the reason for the pause.
As a last resort, you may need to consider legal actions, such as sending a formal demand letter or engaging a collection agency. Always ensure you know your legal options and the agreed-upon terms with your customer before taking this step.
Simplify Your Email Invoicing with Peakflo
Peakflo offers an all-in-one solution for email invoicing designed to make your invoicing process seamless and efficient. Over the years, we have helped several customers automate their business processes, and our success stories are testaments to that.
Here is why Peakflo stands out as the best choice:
- Automated Invoicing: Save time by automating your invoice creation, formatting, and delivery. Peakflo ensures your invoices are sent on schedule, reducing manual effort.
- Payment Reminder Automation: Get paid faster with automated, multi-channel reminders (email, SMS, WhatsApp). Peakflo sends polite, consistent follow-ups, so you do not have to.
- Real-Time Tracking: Monitor invoice status and payment timelines in real-time, ensuring you are constantly updated on overdue or pending payments.
- Customizable Templates: Create branded invoices with Peakflo’s customizable templates, ensuring your communication stays professional and consistent.
- Proforma Invoice Validation: Verify invoice accuracy before sending, reducing errors and disputes.
Conclusion
Mastering email invoicing ensures prompt payments, minimizes errors, and improves customer relationships. Automating processes and maintaining professionalism will streamline your invoicing for better cash flow.
Peakflo simplifies this journey with automated invoicing, payment reminders, and real-time tracking, ensuring you always get paid on time and without hassle.
Ready to streamline your invoicing? Schedule a demo tour with Peakflo today and discover hassle-free payment solutions!
