As soon as you send out your second invoice, it’s time to start tracking them. And time to set up a template. If you’re really smart, you’d set it all up with the very first one, but who is really that ahead of the game. (I never was!)
Once you start working with a variety of companies, it becomes imperative that you organize and track your invoices and payments. Because if you don’t, your bank account will be a little lighter than it should be.
3 Ways to Organize your Invoices
1. Within your accounting software (i.e. QuickBooks or Fresh Books), you can manage invoices from the home page by clicking “create invoices.” Once created, it will remain in Accounts Receivable until you receive payment for that invoice, when it will then be recorded as payment received and the invoice shows a zero balance.
2. Set up a Google spreadsheet that has a template tab, as well as a tracking tab. With dates invoices were sent, as well as when payment was received. You can copy the template into new tabs and send directly from Google Drive to your company contact as .pdf. (File – Email as Attachment – Dropdown, select PDF.)
3. The old pencil and paper method. Keep track in a notebook and check or cross off as payments are received.
And don’t forget to ask the company or agency when you can expect payment. Depending on the company, some payout immediately, and others are net 30, 60, even 90.
Whichever suits your organizing method, get it set up from the get-go. You’ll never miss (or even lose) payment again!
How do you keep track of your invoices and payments?
Erin –
Thank you for this info. I had a similar question buzzing around in my head lately about how to keep track of prizes received. I am going to use a notebook and a spreadsheet now to see which works best for me.
Thank you again!
~Belinda