Do you wish to convert estimates into invoices but are not sure about the process? Well, you are at the right place then. This post will help you understand the entire process and organize business expense tracking. The process need not be painful, and the right project estimation software can make it super easy.
You will need to follow these steps to achieve the same.
Record and Then Copy The Data
Click on the estimates in your expense tracking software and then click on “Convert to Invoice.” Now, you can choose to edit the new invoice as per your needs, print it, send it to your clients, or store it in records. Also, if you don’t have estimates in the first place, make sure you use professional templates to generate them and then convert them into an invoice.
Creating an Invoice
Another way is to copy project information from project estimation software to an invoice template. If you are making this invoice for a project, make sure you cover only the relevant items you need for billing.
Some small businesses also prefer to bill some part of their labor and material costs. So if you are converting your estimate into an invoice, make sure you adjust them accordingly. You can even choose to repurpose the estimate using Google docs, PDF, Word, and Excel.
Customize the Invoice
Now that all these things are in place, you can easily convert your estimate into an invoice. But, before you do that with your project estimation software, ask yourself these questions.
- Is there a change in the prices?
- Will you be creating an invoice for the entire project or for a part of it?
If you pick the latter, you will need to use progressive billing techniques and will need to add the following information:
- Contact information for both parties you and your client
- Your logo
- A clear description of services offered
Here are a few things you will need to change as per the requirements
- Due date
- Change your estimate number to invoice number
- Remove timelines
- Triple-check the things you need to include as costs and services
- Delete any estimate terms, like how long the estimate was valid for
- Eliminate information on the costs that you have not previously included in your estimate
- Triple-check the sales tax and the amount your client needs to pay
- Add your payment terms, the method you would like to get paid, and any late payment charges, if any
Explain The Changes
Any items or costs that are different from estimates must be cleared with your clients. So, the first step is to prepare an updated estimate and get it approved by your client. Sending an invoice with unapproved changes will damage your reputation and delay your payments too.
Once your client has approved the changes, then only make an invoice referring to your estimated numbers. Make sure to include a note and even update the estimated number. Also, add any additional charges in separate lines, leaving no room for your error.
Once done, double-check your work and then only share the invoice with your client. You can choose to email or print it depending on your client preferences. The best thing you can do is to put reminders in your calendar if it is needed to follow up with clients.
So, converting estimates into invoices is one of the things you can do to stay on top of your finances and build a good relationship with your clients. The right expense tracking software can help you sail the boat with utmost ease.
Wrapping Up
So, here is how you can use project estimation tools to convert estimates into invoices. Doing so will help you get paid on time and prevent rejection faced with invoices. So, to enjoy business expense tracking, invest in good expense tracking software.
These will streamline your work to a great extent and help you focus on core business issues. Besides, you can even use project estimation software to automate the entire process of creating estimates and look after tasks that need immediate attention. If you are still looking for the perfect estimation solution, we can help you find one!
Click here to Convert Your Estimates into Invoices
