How to Bill a Client in 2024: A Step-by-Step Process

More than 66% of businesses say that it takes more than 5 days to process an invoice. So, billing a client isn’t just about sending an invoice. It’s about creating a smooth process that builds trust.

So, when you have a clear system in place, everything runs more smoothly, and you spend less time chasing payments.

So, how do you bill a client?

1. Set clear payment terms before you start
2. Prepare a detailed and professional invoice
3. Automate invoicing for a seamless client experience
4. Send invoices at optimal times
5. Track payments and invoice statuses
6. Use recurring billing for subscription services
7. Follow up on late payments

By following these steps, you’ll make payments smoothly, reduce delays, and maintain strong client relationships. Let’s explore each step!

How to Bill A Client Within 7 Simple Steps

With a simple and organized billing system in place, you’ll get paid faster and build better relationships with your clients. Let’s walk through the steps to make billing easy and stress-free!

Step 1: Set Clear Payment Terms Before You Start

Before starting any project, set clear payment expectations. This helps establish trust and transparency, ensuring you and your client are aligned on terms and avoiding any confusion later on.

What to Include in Your Contracts:

• Project Deliverables: List your services clearly in the service catalog with detailed descriptions, pricing, and units. Embed it on your website for a seamless client experience, making browsing and ordering simple and efficient.
• Revisions and Extra Features: Specify the number of revisions included and the costs for any add-ons or upsells. This way, clients know extra features come with additional charges, keeping expectations clear and manageable.
• Payment Schedule: Clearly outline whether you are paid upfront, in installments, or upon project completion. Specify your pricing structure, whether a one-time fee or a subscription.
• Accepted Payment Methods: List every option you accept, including ACH transfers, credit cards, and international gateways like PayPal, Payoneer, and Wise. This makes payment easier for clients, no matter where they are.
• Late Fees and Penalties: Include a clause in the terms and conditions about late payment fees to encourage timely payments (e.g., 5% per week).
• Cancellation Terms: Describe what happens if either party needs to cancel the project, including any fees or partial payments required.

Example: Onboarding a new client? Start with a clear contract outlining deliverables, payment milestones, and terms like 50% upfront and 50% on completion. This ensures transparency, avoids payment delays, and builds trust.

Build your invoices to reflect these terms. With tools like Agency Handy, embed payment schedules directly into templates to keep everything crystal clear.

Step 2:  Prepare a Detailed and Professional Invoice

A clear invoice means faster payments. If your client is confused or has unanswered questions, it can delay the process. To avoid this, make sure your invoices are detailed and easy to understand.

With Agency Handy, creating custom invoices is quick and simple. You can add your logo, colors, and notes for a professional look. Plus, invoice tracking helps you stay updated on payments—whether they’re sent, paid, or still pending.

Invoice Must-Haves:

• Business Information: Include your company name, address, and contact details.
• Client Details: List their name, address, and company (if applicable).
• Invoice Number: Use a sequential numbering system for easy reference.
• Date of Issue and Due Date: Include the date when the invoice was sent and when payment is due. 
• Detailed Service Descriptions: Be specific. Instead of “Design Services,” write “Logo design and three revisions completed on [date].”
• Payment Terms: Add the terms you agreed on, like due dates and any late fees.
• Payment Options: Include bank details, payment gateway links, or credit card payment instructions.
• Additional Details: To complete your invoice, you can add discounts, VAT or taxes, and even a digital signature.

Pro Tip: Use Agency Handy’s templates to customize your invoices. Add your logo, business name, and colors for a polished look. Features like “Add Discount,” “Include Tax,” and “Attach Payment Links” make your invoice professional and complete.

Step 3: Automate Invoicing for a Seamless Client Experience

Manually sending invoices can be tricky. It often leads to delays or missed payments. Automating the process makes everything easier for you and your clients.

With Agency Handy, invoicing happens automatically. Clients get detailed invoices right on time. You don’t need to worry about deadlines or follow-ups. Instead, you can focus on your work and enjoy faster payments.

How Agency Handy’s Automation Speeds Up Your Payments

• Instant Invoice Creation: Invoices are sent as soon as work starts or a project phase ends. There’s no need to do it manually, keeping the process smooth and quick.
• Scheduled Invoices: For ongoing projects, set them up to send automatically. This keeps your income steady and predictable.
• Accurate Billing: Service details are added automatically based on the client’s order. This keeps things clear and avoids confusion.
• Easy Payments: Each invoice includes a “Pay Now” button. Clients can pay instantly, cutting the wait time.
• Real-Time Tracking: Invoice statuses update automatically. You can see if they’re sent, paid, or still pending—all in one place.

Step 4: Send Invoices at the Right Time

Timing is key when it comes to sending invoices. If you send one late on a Friday, it might get lost over the weekend. But a Monday morning? That’s a much better time to grab attention.

With Agency Handy, you can easily draft and schedule invoices for recurring billing. Set up custom schedules, automate the process, and let the system handle repetitive tasks. This not only saves time but also ensures steady cash flow.

Best Practices for Timing:

• Recurring Projects: Pick a specific day each month to send invoices. This creates a routine and helps your clients manage their budgets.
• One-Time Projects: Send the invoice as soon as the work is complete. When the project is fresh in the client’s mind, they’re more likely to pay quickly.

Step 5: Track Payments and Invoice Statuses

Don’t let invoices vanish into the void. Always track their journey—know when they’ve been sent, viewed, or paid. Staying on top of their progress helps you act quickly if something goes off track.

Agency Handy’s real-time dashboard keeps you updated on every invoice status, so you can monitor payments, address delays, and stay on top of your finances. 

Step 6: Use Recurring Billing for Subscription-Based Services

If you’re working on long-term projects or offering ongoing services, knowing how to bill clients monthly is crucial. This makes it easier to ensure you get paid regularly without having to send invoices manually each time.

Agency Handy’s automated recurring billing feature lets you set up subscription payments with ease. Customize the billing frequency (weekly, monthly, or annually), and let the system handle invoicing and payment collection.

Step 7: Follow Up on Late Payment

Even with the best setup, payments can still be delayed. More than 81% of small and mid-sized businesses fail to get payments on time, leading to financial burdens. 

The key is to follow up professionally and politely. Stay firm but friendly, and you’ll maintain good relationships while addressing the issue.

With Agency Handy, you can set automated reminders sent at intervals you choose. For instance, follow-ups can go out 3 and 7 days after an invoice is due, or before subscription renewals. Customize these intervals to fit your needs.

Your Follow-Up Strategy:

1. First Reminder (A Few Days Late): Send a polite email.
   “Hi [Client Name], just a friendly reminder that invoice #123 was due on [date]. Let me know if you have any questions.”
2. Second Reminder (A Week Late): Mention late fees, if applicable.
   “Hi [Client], just following up on invoice #123. Please note that a late fee of 5% will apply starting [date].”
3. Final Attempt: If emails don’t work, make a phone call to express urgency politely.
4. Take Further Action: If there’s no response, consider a collections agency or legal steps. Keep records of all follow-up attempts for reference.

Why Should You Have an Appropriate Billing System? 

Chasing payments with manual invoices is frustrating for everyone. Clients expect an easy process, and a smart billing system makes it simple. It helps you build trust, get paid on time, and avoid awkward follow-ups.

Here’s why it’s important:

1. Save Time and Work Smarter

Your time is too valuable to spend on repetitive tasks. A good billing system automates most of the work, reduces errors, and takes the hassle out of creating and managing invoices. This gives you more time to focus on growing your business—or simply taking a well-deserved break.

2. Make Payments Easy and Fast

Payments should be simple, not a chore. Offering multiple payment options—like credit cards, bank transfers, or online platforms—makes it easier for clients to pay. When paying is easy, you get your money faster, keeping your cash flow steady.

3. Show Clients You’re Professional

A clean, detailed invoice says a lot about you. It shows you’re organized and serious about your work. Professional invoices build trust and set a positive tone, making the payment process smooth and hassle-free.

4. Keep Things Clear and Transparent

Clients appreciate the clarity. When they can easily view invoices, payment statuses, and histories, it avoids confusion and builds trust. A transparent billing process keeps everyone on the same page and ensures a positive experience.

5. Plan for Growth with Revenue Insights

Track your income and revenue patterns over the last 30 days using visual dashboards. Identify your top-paying clients, understand your earnings, and use these insights to grow your business with confidence.

Wrapping Up

Billing doesn’t have to be stressful or complicated. By setting clear terms, creating detailed invoices, and making payments simple, you’re paving the way for smoother client relationships and faster payments. 

Agency Handy is here to help, offering automated invoicing, multiple payment options, and revenue tracking—all in one place. Spend less time chasing payments and more time growing your business and doing what you love.

Start getting paid, stress-free!

FAQs About Billing Clients

How can Agency Handy help with billing?

Agency Handy simplifies billing with features like automated invoices, payment reminders, and a client portal. It’s designed to make getting paid easier and faster.

Should I get a signed agreement before billing a client?

Always get a signed contract before starting work. It should outline the project scope, payment terms, and other important details. This protects both you and the client and makes the billing process clearer and more straightforward.

Is it wrong to charge late fees?

Not at all. Charging late fees is a common and acceptable practice, as long as you’ve clearly communicated the policy beforehand. Just ensure you remain professional when applying them.

How do I handle a client who won’t pay at all?

If reminders don’t work, send a final notice outlining the unpaid amount and terms. As a last resort, consider a collections agency or legal action. Always keep a record of your communication and agreements.