One of the best parts of running your own business is getting paid. But creating an invoice, sending it to your client, and keeping track of it throughout the process can become complicated, especially when working with multiple customers on different billing cadences. From chasing down a late payment to realizing you invoiced the wrong client, you may feel like you can’t catch a break.
But here’s the thing: You don’t have to be an accounting expert to develop a convenient, headache-free invoice tracking system. Whether you choose to rely on a simple invoice tracking spreadsheet or prefer the advantages of automated accounting software with invoice tracking capabilities, there’s a digital solution for nearly every type of business.
The best way to keep track of payments comes down to the type of business you run. For instance, the way freelance writers invoice their clients (after the submission of an article) can be quite different from how interior designers bill theirs (such as 50% upfront with the remaining balance due 30 days after completion).
No matter how you choose to keep track of accounts payable, it boils down to creating a uniform, reliable process that works best for your business. And if you choose the right accounting software and integration, you can send and track e-invoices and payments with ease. Compared to an Excel sheet, accounting software takes the manual process out of invoice tracking. Check out the accounting software PayPal integrates with.
In the accounting world, money owed to your business from customers is known as accounts receivable. Here are tips for keeping track of outstanding invoices:
On the other hand, the money you owe to vendors and expenses is called accounts payable. Similar to tracking outstanding invoices, it’s just as critical to keep tabs on how much you owe.
An easy way to create your own invoicing tracking template is by using an Excel spreadsheet. With an Excel spreadsheet, you can organize your billing in multiple ways. While a ledger is usually kept chronologically according to date, an online tracker can filter your invoices based on name, receivable, date, receipt number, and more. When creating your Excel invoice tracking template, it’s a good idea to start by including the following:
Pro tip: If you want to automate your invoice tracker, PayPal Invoicing does the heavy lifting for you. The PayPal invoice tracker updates automatically to include each new bill and track its payment status. You’ll see the status of each invoice and have the ability to record payments, send reminders, and more, using a convenient drop-down menu.
Once you’ve got the basics covered, you can think about customizing your invoice tracker to meet your specific needs. Does it make sense for your billing to include additional information about the customer? Do you have employees who made the sale or provided the service? When tailoring your invoice tracker template, you may consider including the following details:
With PayPal Invoicing, you'll have a dashboard where you can view the complete history of an invoice, accept payments from 200+ markets around the globe and more. Even better, PayPal Invoicing can help you get paid fast by giving your customers an easy way to pay – even if they don’t have an account with PayPal. For example, in a recent study, 79% of PayPal invoices are paid within one day of sending the invoice.1
No matter what kind of invoice tracker you use, organization is key. You’d hate to leave money on the table because of a messy ledger. PayPal Invoicing can help you stay organized, save time, and get paid.
Here’s a quick guide on how to use PayPal for Invoicing:
Ready to get started with PayPal Invoicing? Learn more here.
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