Invoice
In any business, there are features of work that are characteristic only for it. That’s why it’s crucial to have a flexible tool like SaldoInvoice at hand that allows you to bill all goods and services provided in the format that is most convenient for you. Construction and renovation work is no exception. Companies specializing in this area perform various tasks, the billing of which can be confusing, especially for novice independent contractors and suppliers. In this article, we will look at how to make a construction invoice like a pro and what information you should include in a file.
What Are Construction Invoices?
Invoices are a special type of document that is an itemized list of products and services provided. It is sent to a client after a contractor has completed an order to receive payment for the work done. The billing process in the construction industry is not much different from other areas of activity.
Perhaps the only significant difference is that a variety of tasks can be performed as part of the construction of an object, and their implementation, as a rule, takes quite a lot of time. Therefore, payment documents can be sent after completing certain types of work, stages, smaller projects, and so on. Construction invoice terms and conditions and the frequency of submitting bills should be discussed with a customer in advance when drawing up a contract.
What to Include on Invoice for Construction Work
In general, a construction invoice template includes all the same basic fields that are in templates for other categories. Modern tools and business solutions, such as Invoice Maker by Saldo Apps, allow users to customize them for the needs of a particular enterprise. However, some lines are a must for any payment document. Include in your file the following information:
- the date when you issued a bill, doc ID, and the period during which a client should pay;
- business details of your company and your customer;
- full list of products and materials provided, services rendered, their prices (per unit or hour), and quantity;
- due taxes and fees;
- discounts or shipping costs if you provide such services;
- payment options and instructions;
- the total amount payable (determined automatically based on all the entered data).
You can choose any construction bill format that suits you or your orderer: PDF, Excel, Word, Google Sheet, or Google Docs. Professionals recommend using ready-made templates rather than compiling payment documents manually. It helps to avoid mistakes and errors in essential data and makes construction invoice processing easier for a recipient.
Standard Payment Terms for Construction
Every industry has certain standards regarding terms and conditions. In the construction area, it is common practice to give customers a 30-day period to make payment on an invoice received. At the same time, large companies can afford to extend this period to 90 or even 120 days, especially for large-scale and expensive orders. However, such a delay in payment can be catastrophic for small firms. Therefore, to maintain the financial flow, they can reduce payment terms to 7 days. To encourage clients to pay early, you can offer a discount for transferring funds in the first days after receiving payment documents.
Now you know all about how to write a construction invoice. No matter how simple or complex your project is, you can customize a template the way you want and put all the necessary information into it. So as not to miss any data, save third-party documents such as receipts and timesheets as you work, which you may need when issuing invoices.
