InvoiceNet

InvoiceNet

What is a draft invoice?

Draft invoices are an incredibly useful but often overlooked tool for a wide range of professionals and businesses.  If you’ve not used a draft invoice before but you’re looking to improve your financial processes and cash flow, then draft invoices can help with the flexibility, accuracy and efficiency of your invoicing process.

But what are drafts invoices, why are they important, which businesses benefit most from using them and when should you think about setting one up for a customer or client?

 

WHAT IS A DRAFT INVOICE?

A draft invoice is a preliminary version of an invoice that’s created and saved before it’s finalised and sent to a client or customer. 

 Unlike a final invoice, a draft invoice can be changed and updated as many times as you need, until all the details are accurate and complete. Think of your draft invoice as a working document that helps you make sure, every detail is correct before it becomes an official request for payment. Draft invoices are usually used in accounting software, like Invoicenet, which makes them very easy to create, edit, and manage.

WHY AND WHEN DO BUSINESSES USE DRAFT INVOICES?

Draft invoices can be very useful in lots of different situations but especially during the negotiation stages of a project or job, where terms and costs can change. 

A draft invoice will help you keep an up-to-date track of what’s been agreed between you and your customer or client, without committing to a final invoice until everything is confirmed.  This method will make sure the final invoice accurately details the services or products provided and the terms you’ve agreed. 

You might also use a draft invoice if you work with a client over a longer period of time or in billable project stages.  The draft invoice can become a working document that tracks the work as it’s being completed, before you finalise the invoice for your customer or client to pay.  You can also use different draft invoices for each billing stage in an ongoing project.

WHICH BUSINESSES USE DRAFT INVOICES?

Any business can use draft invoices but there are some types of businesses that use draft invoicing more frequently.

Freelancers and consultants often use draft invoices to keep track of their billable hours and project expenses.  Small business owners can benefit from the flexibility of draft invoices because they can make changes before finalising and sending invoices to customers, such as adding or removing products or services from an order.  Larger companies with complex billing systems or businesses engaged in long-term projects can use draft invoices to manage ongoing billing and track changes over time.

Still not sure about using draft invoices in your business?

We’ve listed some of the best benefits below.

EASY TO CREATE AND EDIT

One of the main advantages of draft invoices is they’re easy to create and edit, especially with an online invoice generator like Invoicenet.

You can make changes and adjustments to your invoices as needed before finalising them in just a few clicks.  Whether it’s updating pricing, adding new items or correcting errors, draft invoices offer the flexibility to ensure your invoices are accurate and professional. This ability to edit and revise helps you avoid mistakes and maintains a high level of accuracy in your billing transactions.

QUICK TO CONVERT

A big benefit of draft invoices is the ability to quickly convert them into final invoices.

Digital invoicing makes the conversion from draft to final invoice super quick.  In fact, with Invoicenet it takes only a single click, to turn a draft invoice into a final one and deliver it by email to your customer as a professional PDF invoice. This streamlined process saves time and simplifies financial business administration, allowing you to focus on other important tasks.

EFFORTLESS TIME TRACKING

Easily track your billable hours using draft invoices before converting them into final invoices.

Draft invoices make time tracking easy by logging your work as you go.  This makes sure all billable hours are accounted for and correctly invoiced, which helps you get paid accurately for your work.  Having a user-friendly invoicing system in place can simplify the process, helping you log and monitor your working hours in real time.

IMPROVED ACCURACY

Accuracy is crucial in invoicing and draft invoices help improve it.

By helping you review and double-check all details before sending them to clients, draft invoices reduce the risk of errors and inaccuracies. This ensures that your invoices are correct and reflect the agreed-upon terms. Improved accuracy not only helps maintain professionalism but also fosters trust and reliability with clients or customers.

SPEED UP AND SAVE TIME

Preparing draft invoices in advance can save valuable time and speed up the invoicing process.

Instead of creating an invoice at the last minute, you can quickly convert your accurate drafts into final invoices when you’re ready to ask for payment. This proactive approach to invoicing helps businesses stay organised and efficient.  This also allows you to batch create invoices ready to send in bulk every month.

GOOD CUSTOMER SERVICE

Draft invoices can contribute to better customer service.

By sharing draft invoices with your clients or customers for review and feedback, you can address any questions or concerns in advance. This collaborative approach will help get your clients or customers on the same page before finalising invoices, which can speed up payments and improve customer service.

THE BOTTOM LINE

Draft invoices are an incredibly useful tool that can help your business to increase your cash flow, reduce costly invoicing errors and also improve your customer loyalty.  Alongside the many benefits we’ve listed above, they offer flexibility, accuracy and efficiency, making it easier for your business to handle any billing transactions.
If you want to see firsthand how draft invoices can make a difference to your business, why not make use of our trial to test them out for FREE.

Sign Up For 180 Days Free!

Instant access - cancel anytime - no credit card required

Share:

Facebook
Twitter
Pinterest
LinkedIn
On Key

Related Posts

Invoicing
InvoiceNet

What is a draft invoice?

Draft invoices are an incredibly useful but often overlooked tool for a wide range of professionals and businesses.  If you’ve not used a draft invoice

Read More »
Handling Payments
InvoiceNet

Can I Cancel An Invoice?

At some point, every business owner needs to ask the question “Can I cancel an invoice”? There are a number of factors to consider – we cover the essentials.

Read More »
Handling Payments
InvoiceNet

3 Common Invoicing Errors that Cost You Money

Nobody likes to make mistakes, especially when it comes to handling money but oversights happen.

We’ve outlined three of the most common invoicing errors that delay payments and our top suggestions for avoiding them. 

The best news is – they’re all very easy to action!

Read More »

Success!

We’re happy to welcome you to our growing community of small business owners.

Please check your inbox for our welcome email (you might need to check your junk folder) and our quarterly newsletter will be with you soon.