Invoicing process: Steps to send invoices and get paid faster

Published Tuesday 2 September 2025

Table of Contents

• What is the invoicing process?
• Set a billing schedule
• Invoice more often to get paid more often
• Connect quotes and invoices
• Use invoice templates to save time
• Track time and materials in real time
• Check your invoices before sending
• How invoice software can help you
• Accepting online payments
• Help your customers pay on time
• Follow up on overdue invoices
• Common invoicing mistakes to avoid
• Build the perfect invoicing system
• FAQs on invoicing processes

Key Takeaways

• Establish a consistent billing schedule by dedicating a specific day and time each week to creating and sending invoices, which prevents invoicing tasks from being delayed by other work priorities.
• Invoice frequently by sending bills weekly or immediately after completing work rather than monthly, as this accelerates cash flow and helps maintain steady payment cycles.
• Use invoice templates and dedicated software to eliminate repetitive data entry, automatically calculate totals, and reduce errors while saving significant time on administrative tasks.
• Follow up systematically on overdue invoices by sending friendly reminders on the due date, calling within one week, and escalating to formal notices after two weeks to maintain healthy cash flow.

What is the invoicing process?

The invoicing process is the series of steps you take to create, send, and manage invoices for your customers. A good process ensures you bill for your work accurately, send invoices promptly, and follow up effectively to get paid on time. It's a key part of managing your cash flow and keeping your business finances healthy.

Set a billing schedule

A billing schedule is a set time each week dedicated to creating and sending invoices. This prevents invoicing from being pushed aside for other work.

Pick a specific day and time each week for invoicing. Add it to your calendar as a regular appointment. If you do not have time, you could hire a bookkeeper to help.

Invoice more often to get paid more often

Frequent invoicing means sending bills weekly or immediately after completing work, rather than monthly. This accelerates your cash flow by reducing the time between work completion and payment.

Benefits of frequent invoicing:

• Avoid backlogs by creating invoices regularly
• Get paid faster as customers receive invoices sooner
• Maintain steady cash flow with regular payments
• Track jobs more easily by invoicing immediately

Connect quotes and invoices

Use the same descriptions and prices from your approved quote in your invoice. This makes it clear what your customer is paying for.

Why this prevents disputes:

• Show customers exactly what they agreed to pay for
• Avoid surprises or unexplained charges
• Keep a clear record if payment issues come up

Use invoice templates to save time

Invoice templates are pre-formatted documents that automatically calculate totals and include your standard business information. They eliminate repetitive data entry and reduce errors.

Ways to get the most from templates:

• Save templates for different service types with pre-filled descriptions
• Add regular customers' details and preferred terms
• Use formulas for subtotals, taxes and final amounts

As your business grows, use dedicated invoicing software for more automation features.

Track time and materials in real time

Record hours worked and expenses for each job as you go. This means you do not have to piece together costs later.

Why tracking in different places slows you down:

• Spend time searching through diaries, emails and receipts
• Miss small expenses or round down hours
• Delay invoicing because piecing together costs is tedious

How to track time and expenses digitally:

• Clock in and out of jobs from your phone using time-keeping apps
• Photograph receipts and link them to jobs instantly with expense apps

Check your invoices before sending

Check each invoice before you send it. Make sure the customer’s details, dates, descriptions and total amount are correct. This helps you get paid on time.

How invoice software can help you

Invoice software does the repetitive work for you and connects with your accounting system. This saves you time from creating invoices to tracking payments.

Features that save you time:

• Remember your standard rates and product prices
• Apply the correct tax rates and prepare tax documents automatically
• Track payments and see which invoices are paid each day
• Create and send invoices from your phone

Accepting online payments

Online payments let customers pay invoices instantly using credit cards, debit cards, or digital wallets instead of writing cheques or making bank transfers. This can reduce payment times by up to 30%.

When online payments make sense:

• Make it easier for slow-paying customers to pay on time
• Save time when you send many invoices, even with small transaction fees
• Avoid posting cheques or arranging bank transfers for remote customers

What to know before you set up online payments:

• Set up most accounts for free
• Pay transaction fees of 1–3 percent per payment, depending on the method

Learn more about online payment services.

Help your customers pay on time

Set clear expectations about payment and follow up consistently. This shows customers you expect timely payment.

How to set expectations for new customers:

• Call after sending the first invoice to check they received it and have what they need
• Call the day after the due date if payment has not arrived
• Stay friendly and helpful in your calls
• Repeat this pattern for the first three or four invoices

Why following up helps:

• Remove excuses about not understanding payment terms
• Show you track payments and expect them on time
• Help customers learn your payment standards early

Follow up on overdue invoices

Following up on overdue invoices is key to getting paid. Even well-written invoices may go unpaid without reminders.

When to follow up on overdue invoices:

• Send a friendly payment reminder on the due date
• Call one week after the due date to check for issues
• Send a formal written notice with consequences after two weeks
• Consider debt collection or legal action after three weeks

Most payments arrive after the first or second reminder, so keep following up to maintain healthy cash flow.

Learn more about handling unpaid invoices.

Common invoicing mistakes to avoid

Avoid these common mistakes to keep your cash flow smooth:

• Send invoices to the correct person or email address
• Include a clear due date
• Use clear descriptions for products or services
• Follow up on overdue payments

Build the perfect invoicing system

Your optimised invoicing process combines consistent scheduling, smart tools and proactive follow-up to speed up cash flow. Review these steps regularly to keep your system efficient as your business grows.

Key benefits of a good invoicing process:

• Get paid faster with regular follow-up
• Spend less time on admin by using automation and templates
• Improve cash flow with predictable income
• Prevent payment delays with clear communication

FAQs on invoicing processes

Check out these common questions and answers small business owners may have about typical invoicing processes.

What are the essential steps in invoicing?

The key steps are: creating a detailed invoice with all necessary information, sending it to your customer promptly, tracking the payment status, and following up if it becomes overdue. In New Zealand, for instance, taxable supply information for supplies over $200 must be provided to GST-registered buyers within 28 days of a request.

How often should I send invoices to customers?

This depends on your business. For ongoing projects, monthly invoicing is common. For smaller, one-off jobs, it's best to invoice as soon as the work is complete to get paid faster.

What's the difference between billing and invoicing?

Billing is the overall process of requesting payment from customers. An invoice is the specific document you send that details the transaction, lists the products or services, and states the amount due.

How long does the invoicing process typically take?

With manual methods, it can take hours. Using accounting software like Xero, you can create and send a professional invoice in just a few minutes, especially if you use templates for repeat customers.

What information must be legally included on invoices?

While rules can vary, a standard invoice should include your business name and contact details, the customer's name, an invoice number, the date, a clear description of goods or services, the total amount due, and payment terms. In New Zealand, for example, laws effective from 1 April 2023 replaced the term 'tax invoice' with a requirement to provide taxable supply information.