Every day, electricians take on hazardous tasks, but they always prioritize safety to safeguard both the homeowner and themselves. While extremely competent in the technical aspects of the work, some electrical experts may struggle when it comes to knowing how to properly fill out an invoice for electrical work or quote for service.
No matter how experienced or skilled your field contractors are, almost all of them will say that they find invoicing to be the most trivial and arduous task in the field. Some technicians are simply accustomed to estimating pricing on the go or creating electrical bills with pen and paper. It’s no huge deal if you give them an electrical problem to address or a metered service to set up. However, if you ask them to make it perfect, their confidence may dwindle. This is because manual invoicing is never guaranteed to be error-free. This is where invoicing software comes to their rescue.
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Invoices are one of the most crucial tools in your business as an electrical contractor. Invoices that are meticulously created enable you to collect payment faster while also demonstrating that you run a competent and trustworthy organization.
Electrical contractor invoices should clearly state any services, repairs, or installations provided by your electrical company, how much the customer owes, and your payment terms. If your electrical technicians merely remedy the reported problem, bill the customer, then move on to the next job without explaining the work or the invoice, your organization may be missing out on chances. Make your invoice serve as an opening for future work that could generate far more profit than a one-time electrical service visit.
But how do you quickly and easily create professional-looking invoices? In this blog, we have put together some effective tips to create a professional electrical invoice for contract work. Keep reading to find out the best practices.
1. Create or Choose the Right Invoice Template
i) Your Company Name and Logo
Include the legal name of your company or your own name if you work as a freelancer. Include your logo as well, if you have one.
ii) Your Business Address
Provide your contact information. If your correspondence address is different, please let us know. Along with your address, include contact details such as your official email and phone number.
iii) Invoice Date
Mention the date when the invoice is created
iv) Invoice Number
Each invoice should have its own unique number. These numbers are normally displayed at the beginning of the paper so that anyone can immediately identify them.
v) Material and Labor Cost
For the sake of transparency, a lot of customers want to know what materials and labor you intend to use for the electric service job. Most people do this to guarantee that everything is in order and that all expenses are essential when they invoice electrical work. After all, some electricians do charge exorbitant service rates for poor workmanship. It is your job as an electrician to bill clients fairly, depending on the supplies purchased and the hours completed.
If you engage subcontractors (such as painters or plumbers) or need to obtain an electrical permit for the job, these expenses should be explicitly stated on your final invoice.
vi) Invoice Due Date
Invoice due dates are the dates you anticipate receiving payment. This is critical to your electric service invoice since it specifies when you will be paid. Customers can be slow to pay your invoices, so specify a due date many days before you need the money as a buffer in case the client is late.
If you require the money to be paid precisely on time, remind the customer when you send your invoice for electrical work and put it in your payment terms for electrical work.
You can also charge late fees to encourage your clients to pay on time.
vii) Payment Schedule
It is not necessary to pay all invoices at once. A payment schedule section contains the agreed-upon payment arrangements for electrical work.
There are commonly three sorts of payment agreements for electrical work:
- The customer pays in full in advance.
- Upon completion, the consumer pays in full.
- The customer pays a portion of the cost as a deposit, with the remainder due upon completion.
viii) Sales Tax
Many electrical business transactions are subject to a government-imposed sales tax. Every year, as the vendor, you are responsible for paying these taxes. You can, however, pass on this tax burden to the customer by charging an additional fee for electrical installations on your invoice. However, if you plan to do so, you need to clearly mention the tax amount as a line item on your invoice for contract work.
ix) Terms and Conditions
Include all of the terms and conditions that apply to the bill. Please indicate the payment due date of the electrical contractor invoice, for example: payment is due upon receipt or in 15 days, and so on.
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2. Send the Invoice Directly to the Customer
The best approach to getting paid promptly and conveniently is to create a digital invoice for electrical services before leaving the job site. A mobile app with professional product photographs and thorough pricing breakdowns also helps your technicians personalize client service by clearly explaining the work accomplished and discussing electrical safety enhancements. Give your work a personal touch, and you’ll win a lifelong customer.
3. Choose the Right Time to send Your Invoice
The timing of sending your invoice to your client is crucial to getting paid on time. Always strive to send the invoice as soon as the task is complete. Even better, send the invoice along with a payment link. If you have the correct tools for generating a professional invoice, you can be ready to write invoices promptly based on the products sold or services given.
Allow your clients a few days before following up on an invoice. At least three business days is sufficient. If your client has already pledged to pay you on a specific day, send a polite reminder email a day before the date. For reminders or follow-ups, email is often the preferred medium. If you do not receive a response to your email, only then may you call the customer.
But before interacting by email or text, always ask for permission from your customers. Never call or text without asking first. Even if digital communication appears to be the norm in today’s on-demand environment, it’s just polite. Begin the conversation by asking the customer if they would like to get appointment reminders via text or a text alert letting them know exactly when their electrician is due to arrive. When the job is finished, the technician can email them a link where they can promptly pay open invoices online.
4. Set Up a A Standard for All Your Technicians
By describing the particular facts you want included, you can instruct all of your technicians to adopt the same approach for preparing an electrical invoice. Explain what information you want captured on each invoice. However, make sure you don’t make the task too complex or difficult.
Keep it simple for your technicians by using a mobile app that allows them to simply click through the numerous options. To this end, Field Promax is an ideal solution for creating accurate estimates in the field. With the integrated mobile app, technicians, can simply click on items, create invoices, edit them if necessary, even add items from the job site without requiring to contact the back office, and finally, send the invoice for electrical work directly to the customer as soon as the job is done.
5. Be Prepared to Accept all Kinds of Payment
Most successful home services businesses accept payment in any form, and the more convenient it is for the customer, the better. Some customers prefer to pay in cash alone, while others prefer to pay with a credit card for larger electrical jobs. You may accommodate both by employing mobile-optimized electrical contractor software like Field Promax that allows your employees to process invoices and credit cards while on the job, as well as photograph any cash they get.
Final Thoughts
To leverage the best invoicing practices, make use of e-invoicing and mobile apps in your electrical contractor business.
There are several free electronic invoicing programs available today. Explore the various options and select those that best meet your requirements. They not only make billing easier, but they also make your paperwork look more professional.
The software solutions will also save you time and assist you in keeping track of consumer payments. Human error is inescapable in traditional paper-based systems, no matter how meticulous you or your technicians are. Electronic invoicing, on the other hand, will ensure that you do not overlook any vital facts.
Complete correctness gives you more reputation, which helps you acquire the trust of your clientele. Meanwhile, contractor invoicing apps let you create and send invoices via text or email. However, they will not just assist you in invoicing more swiftly. You’ll be able to construct material and service templates because many electrical jobs have common charges. Because you won’t have to write everything from start to finish for each invoice for electrical work, you’ll save a lot of time on paperwork. As a result, you’ll be able to produce and send invoices more quickly.
