Invoicing process: 9 steps to faster payments and better cash flow

Published Wednesday 5 November 2025

Table of contents

• What is the invoicing process?
• Set a billing schedule
• Invoice more often, get paid more often
• Connect quotes and invoices
• Use invoice templates to their fullest potential
• What could an invoice maker do for you?
• Track time and materials better
• Should you accept online payments?
• Train your customers to pay on time
• Chase invoices like you really want them
• Build a better invoicing system
• FAQs on the invoicing process

Key takeaways

• Establish a consistent billing schedule by picking a dedicated day and time each week for creating and sending invoices, and consider invoicing weekly or immediately after job completion rather than monthly to improve cash flow.

• Use identical descriptions from your signed quotes in your final invoices to build trust and clarity with customers, ensuring they know exactly what they are paying for.

• Implement systematic follow-up processes by calling new customers after their first invoice to set payment expectations, then consistently chase overdue payments with reminders and phone calls.

• Consider adopting invoicing software and online payment options to automate calculations, track payments, and potentially get paid up to 30% faster than traditional payment methods.

What is the invoicing process?

The invoicing process is the series of steps you take to create and send a request for payment to your clients after you've provided goods or services. A smooth process helps you get paid on time, keep your cash flow healthy, and keep accurate records for taxes.

You must include enough information on your invoices so your customers can confirm they have paid the right tax. Invoicing helps you manage your business finances with confidence.

Set a billing schedule

A billing schedule is your dedicated time for creating and sending invoices. Make invoicing a priority so you get paid for your work.

Pick a day and time of the week to get it done, then lock it into your schedule. If you need help, consider hiring a bookkeeper.

Invoice more often, get paid more often

Frequent invoicing means billing weekly or immediately after job completion instead of monthly. Many businesses invoice only once a month, but sending invoices more often helps you get paid sooner and keeps your cash flow steady. According to the federal government, payment for a taxable supply is deemed to become due on the day the supplier first issues the invoice.

Send invoices quickly to encourage your customers to pay on time. Consider these approaches:

• Weekly billing: Prevents backlogs from forming
• Immediate invoicing: Send invoices as soon as work is done for odd jobs
• Consistent cash flow: Money flows in steadily rather than in fits and starts

Connect quotes and invoices

Connecting quotes and invoices means using identical descriptions from your signed agreement in your final bill. It's a good idea to get quotes signed off before starting work.

Use the same descriptions in your invoice so customers know exactly what they are paying for. This builds trust and clarity.

Use invoice templates to their fullest potential

Invoice templates are pre-formatted documents that speed up your billing process. Many businesses use templates from spreadsheet software. They can save significant time when you:

• Pre-filled information: Save templates for specific job types and customers
• Automated calculations: Build in formulae that total charges and add taxes

You can use invoice templates to save time. As your business grows, you might switch to dedicated invoicing software. Find an invoice template that suits your needs.

What could an invoice maker do for you?

Invoice makers are software tools that automate your billing process. They can help you:

• Remember prices: Store the costs of your products and services
• Tax automation: Calculating taxes and preparing filing paperwork automatically
• Payment tracking: Daily bank reconciliation showing paid and unpaid invoices
• Mobile access:Send invoices from anywhere using your phone

Track time and materials better

Time and materials tracking means having one reliable system for recording hours worked and expenses incurred per job. Figuring out what you've spent on a job can be slow work.

Keep all your time and expense records in one place to save time and stay organized.

Apps can help you stay organized:

• Time-keeping apps:Clock in and out of jobs from your phone
• Expense apps:Photograph receipts and attach them to specific jobs

Should you accept online payments?

Online payments are digital payment methods that can get you paid up to 30% sooner than traditional methods. Options include debit and credit cards, automated clearing houses (ACH) like PayPal, or bank transfers.

Most providers charge a transaction fee, but online payments can help you get paid faster, especially if your customers need an easier way to pay.

Find out how online payment services get you paid faster.

Train your customers to pay on time

Customer payment training means establishing clear expectations about your payment process from the first invoice. When you first bill a new customer, call them to check the invoice has everything they need.

Calling your customer after the first invoice helps set clear expectations. If a payment is late, call the next day to check in and show you track payments closely.

Keep this up over the first few invoices to set expectations.

Chase invoices like you really want them

Invoice chasing is the systematic follow-up process that happens after sending your bill. The most important part of invoicing happens after you've sent the invoice.

Even with a well-prepared invoice, following up helps you get paid on time:

• Due date reminders: Contact customers when payment is due
• Phone follow-up: Call if they still don't pay after reminders
• Consistent approach: It's not fun, but it's hugely important

Learn more about how to handle unpaid invoices.

Build a better invoicing system

A smart invoicing system helps you send bills faster and get paid sooner. Use these nine steps to keep your invoicing process on track.

Read the Guide to invoicing to learn more.

With Tap to Pay in the Xero Accounting app, you can accept contactless payments from your mobile phone. Your customers can tap their card or digital wallet for a quick payment, helping you keep your cash flow steady.

FAQs on the invoicing process

Getting your invoicing process right can bring up a few questions. Here are answers to some common ones.

How do you invoice a client step by step?

To invoice a client, create a professional invoice with all the details: an invoice number, your business information, the client's details, an itemized list of services or products, the total amount due, and payment terms.

Send it to your client as soon as the work is done. Keep a record of the invoice and track its payment status. This documentation is important when you file your income tax return, which is usually due within six months of your corporation's fiscal year end.

What's the difference between billing and invoicing?

Invoicing is one part of billing. Billing includes everything you do to get paid, like sending statements and managing payment schedules. An invoice is the document you send to request payment for a job or sale. Under Canadian law, an invoice can also be a statement of account, a bill, a cash register slip, or a similar record.

How long should the invoicing process take?

The invoicing process can be quick with the right tools. Invoicing software lets you create and send invoices in minutes. Set a regular schedule, such as after each job or on a set day each week, to keep your process efficient.

What should you do if a client disputes an invoice?

If a client disputes an invoice, contact them right away to understand the issue. Check the invoice and the original agreement for errors. Work together to find a solution. Clear communication helps resolve disputes and keeps your client relationships strong.