Mechanics and timing of invoice

Discussion in 'First Steps To Starting A Business' started by Andy KH, Jun 14, 2019 at 10:18 AM.

  1. Andy KH

    Andy KH UKBF Newcomer Free Member

    4 0
    Dear all,

    I have a very basic question about the mechanics of invoicing etc for my online service.

    I have an online database that clients will pay £95 a year to access, and they will pay this by bank transfer to my business account. The client would not have access to my website until they have paid the subscription fee.

    So my question is, when do I send them an invoice? Before they have paid and gained access to the site, or after they have already paid and have access? Neither seems the right time as I thought an invoice was for services rendered but not yet paid.

    I have no experience with purchase orders, invoices etc, so any suggestions about how this should work would be very gratefully received.

    Many thanks

    Andrew
     
    Posted: Jun 14, 2019 at 10:18 AM By: Andy KH Member since: Jul 17, 2018
    #1
  2. Darren_Ssc

    Darren_Ssc UKBF Regular Free Member

    281 50
    If you send the invoice before it's paid then you're going to have a lot that never get paid.
    Give an invoice on payment and it saves the bother.
     
    Posted: Jun 14, 2019 at 11:08 AM By: Darren_Ssc Member since: Mar 1, 2019
    #2
  3. AllUpHere

    AllUpHere UKBF Ace Free Member

    2,843 997
    An invoice and a receipt are different things. Send them the invoice so they can make the payment.
     
    Posted: Jun 14, 2019 at 11:10 AM By: AllUpHere Member since: Jun 30, 2014
    #3
  4. Andy KH

    Andy KH UKBF Newcomer Free Member

    4 0
    Many thanks for your replies.

    So when I am negotiating with the client beforehand, would I send them a "pro forma" invoice with the cost, my bank details etc - and would this have the same number as the later invoice?

    I presume I would mark the later invoice after payment as "paid" when I send it?

    Thanks
     
    Posted: Jun 14, 2019 at 12:04 PM By: Andy KH Member since: Jul 17, 2018
    #4
  5. AllUpHere

    AllUpHere UKBF Ace Free Member

    2,843 997
    I wouldn't even bother with a pro forma; it doesn't need to be that complicated. Just invoice them, and they can pay it. If they want a receipt, send one after they have paid.
     
    Posted: Jun 14, 2019 at 12:24 PM By: AllUpHere Member since: Jun 30, 2014
    #5
  6. Andy KH

    Andy KH UKBF Newcomer Free Member

    4 0
    Sure - thanks for your help.
     
    Posted: Jun 14, 2019 at 4:08 PM By: Andy KH Member since: Jul 17, 2018
    #6
  7. estwig

    estwig UKBF Legend Full Member

    12,139 4,218
    I do something similar, I send an email with an explanation and bank details to make a transfer, the email states: I'll confirm with you when funds clear and issue a formal receipt.

    This way I don't have to bother raising an invoice before payment and I don't have unpaid invoices sat on the books.
     
    Posted: Jun 14, 2019 at 4:38 PM By: estwig Member since: Sep 29, 2006
    #7
  8. Andy KH

    Andy KH UKBF Newcomer Free Member

    4 0
    That's very helpful - thanks v much.
     
    Posted: Jun 14, 2019 at 4:45 PM By: Andy KH Member since: Jul 17, 2018
    #8