Invoicing Process for Contractors: From Job Complete to Paid
Cash flow is the lifeblood of every contracting business. Yet many contractors leave thousands of dollars on the table due to inefficient invoicing. This guide walks you through the complete invoicing process - from the moment a job is marked complete to the money hitting your bank account.
The Cost of Slow Invoicing
Before we dive into the process, let's understand why invoicing speed matters so much. Every day between job completion and invoice delivery is a day you're not getting paid. And every day after invoice delivery is another day of uncertainty.
Step 1: Complete the Job Properly
Good invoicing starts before the invoice is even created. The information you capture during the job directly affects how quickly you can invoice and how likely the customer is to pay.
Before Leaving the Job Site
- Document all work completed with detailed notes
- Take before and after photos
- Record all materials used with quantities
- Log accurate labor hours
- Get customer sign-off on completed work
- Note any additional work discussed or recommended
Step 2: Create the Invoice Immediately
The biggest invoicing mistake contractors make is waiting. The longer you wait to invoice, the longer you wait to get paid. Ideally, the invoice should be created within hours of job completion - not days or weeks.
The Same-Day Rule
Research shows that invoices sent within 24 hours of job completion get paid an average of 13 days faster than invoices sent a week later. The customer remembers the work, appreciates the promptness, and pays sooner.
What Every Contractor Invoice Needs
A professional invoice isn't just about looking good (though that matters). It needs to contain all the information required to get paid without back-and-forth questions.
- Your business information: Company name, address, phone, email, and license number
- Customer information: Name, service address, billing address (if different)
- Invoice number: Unique identifier for tracking and reference
- Dates: Service date, invoice date, and due date
- Line items: Detailed breakdown of labor and materials with quantities and prices
- Totals: Subtotal, tax (if applicable), and grand total
- Payment terms: When payment is due and any late fees
- Payment methods: How the customer can pay (online, check, etc.)
Step 3: Send the Invoice the Right Way
How you deliver the invoice affects how quickly it gets paid. Email is the standard, but there are best practices that make a difference.
Email Best Practices
- Clear subject line: "Invoice #1234 from [Your Company] - Due [Date]"
- Brief message: Thank them for their business and summarize the work
- Prominent pay button: One-click access to online payment
- PDF attachment: For customers who want to download or print
Consider SMS Notification Too
Many customers respond better to text messages than emails. A quick SMS notification that their invoice is ready (with a link to view and pay) can speed up payment significantly. See our guide on two-way SMS templates for effective message examples.
Step 4: Make Payment Effortless
Every obstacle between the customer and payment costs you time and money. The easier you make it to pay, the faster you get paid.
Credit/Debit Cards
Highest convenience, fastest payment. Yes, there are processing fees (2-3%), but getting paid in 2 days vs. 30 days is worth it.
ACH/Bank Transfer
Lower fees (0.5-1%), but slower (3-5 days to clear). Good option for larger invoices.
Pro Tip: Offer Payment Plans
For larger jobs, offering a payment plan can make the difference between getting paid and not getting paid. A customer who balks at a $5,000 invoice may readily agree to three payments of $1,700. Better to get paid over time than not at all.
Step 5: Automate Reminders
Chasing payments is uncomfortable and time-consuming. Automated reminders do the follow-up for you, professionally and consistently.
Recommended Reminder Schedule
- Day 0Send invoice with payment link
- Day 7Friendly reminder that invoice is still open
- Day 14Reminder that invoice is due soon (or past due)
- Day 21Firm reminder with late fee notice
- Day 30+Final notice before collection action
Step 6: Track and Manage Receivables
You need visibility into your outstanding invoices at all times. An aging report shows you exactly who owes you money and how long it's been outstanding.
Key Metrics to Track
- Days Sales Outstanding (DSO): Average number of days to collect payment
- Current (0-30 days): Invoices within normal payment window
- 31-60 days: Invoices needing attention
- 61-90 days: At-risk invoices requiring personal follow-up
- 90+ days: Seriously delinquent, may need collection action
Common Invoicing Mistakes to Avoid
Waiting too long to invoice
Send the invoice the same day the job is complete, or within 24 hours at most.
Unclear line items
Vague descriptions like "plumbing work" invite questions. Be specific: "Replaced kitchen faucet (Moen Model 7185SRS)"
No online payment option
Making customers mail a check adds days (or weeks) to payment time. Accept cards and ACH.
No follow-up system
Hoping customers will pay isn't a strategy. Automate reminders or you'll forget.
Not tracking receivables
If you don't know who owes you money, you can't collect it. Use an aging report.
How JobWright Streamlines Invoicing
JobWright's invoicing features automate the entire process from job completion to payment:
- One-click invoice from job: All job details (labor, materials, notes) flow automatically into the invoice
- Professional templates: Your logo, colors, and branding on every invoice
- Online payments: Stripe integration for credit cards, debit cards, and ACH
- Automatic reminders: Set up once, never chase payments manually again
- Client portal: Customers can view and pay all invoices in one place
- Aging reports: See exactly who owes you money and for how long
Ready to Get Paid Faster?
JobWright includes professional invoicing, online payments, automatic reminders, and aging reports for just $99/month. Start your free trial and see how much faster you can get paid.
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