If your business relies on paper-based invoicing, you donât need me to tell you about the inconvenience of printing, mailing, and waiting to get paid. Despite the hassle, many businesses still rely on printing and mailing invoices â youâre not alone. However, more and more shops are switching to online invoicing platforms to eliminate the expense of paper, printing, mailing, and administrative costs — and get paid faster!
If you’re ready to try an easier invoicing process, one simple and popular new solution is Square Invoices — because yes, in addition to the free mobile card reader and mobile POS, Square offers a fairly robust invoicing platform that syncs seamlessly with the rest of Square’s features.Â
We’ve already reviewed Square Invoices, so I recommend that you check out the review for a more detailed look at how Square stacks up against some other options.
In this post, we are going to dive into Square Invoices and show you how to use the platform! From setting up a one-time invoice to setting up recurring invoices and creating deposit requests and reminders, youâre going to find out everything you need to know about using Square to send and receive payments.
But first, I know the most important question will always be “how much does it cost?”
How Much Does Square Invoices Cost?
The good news is that Square Invoices is entirely free to use. You can send unlimited one-off invoices, recurring invoices, scheduled invoices, and any other type of invoice, and youâll only incur payment processing fees at the time your customer pays you.
When your customer opens your invoice and pays you online with their credit card, youâll pay 2.9% + $0.30Â for processing costs. If you use a saved Card on File from your Customer Directory to process an invoice payment, youâll pay 3.5% + $0.15.
Thatâs it. Square doesnât charge any monthly fees, service fees, or any other fees beyond the processing costs. A transparent pricing model and fully secure, PCI compliant payment processing are what makes Square a leading choice for businesses that need a simple, cost-effective solution. Â
So letâs find out how to use Square Invoices to save time and get paid faster!
How To Send A Square Invoice
To send an invoice with Square, youâll need to set up a Square account. The setup process doesnât take long, and Square only asks for necessary personal information â no credit checks required! Once youâve got an official Square account, you can access everything you need right at your dashboard. The same tools are at your disposal whether you access Invoices from your Square POS app or the Square Dashboard at your computer. Note that for this post, we are creating an invoice from our Square Dashboard â and here it is in the screenshot below.
As you can see, I donât have any outstanding invoices. If I did have outstanding invoices, the blue box labeled Invoices would display the dollar amount. From this tile, I can quickly send a new invoice by selectingÂ Send an Invoice.
1. Fill In Customer Information & Invoice Details
When you first open the form to build an invoice, itâs very straightforward to plug in the details. Add your customerâs name, email address, and a message. The default message for the invoice is, âWe appreciate your business,â but you can certainly start from scratch here and add a more dynamic message. The possibilities here are endless, from inviting them to consider a new service or promoting an upcoming event or discount. You know what they say, âAlways Be Closing.â
Keep in mind that Square Invoices also syncs with your customer directory, so if you’re invoicing a past client, you can pull their name and information from the directory. If this is the first time you’ve sent this customer an invoice, this process will create an entry in your database.
I want to mention the Invoice Method line briefly. This line refers to the delivery method. Square Invoices send the invoice via email as a default, but you can also select Share Invoice Manually in the drop-down and Square will generate a link. You can send the link to your customer via text message, social media account, or any other type of messaging platform.
2. Set Payment Terms For One-Time Invoice
Working our way down the Invoice Details, letâs look at the Frequency. In the drop-down, you can choose One-time or Recurring. In the next section, Iâm going to peel back the layers of recurring invoices. But first, letâs focus on a one-time invoice and the Send line in the image below.
This step is important for obvious reasons. When you think about customer behavior, remember that the fresher the value is in their mind, the more likely you are to get paid. Send the invoice as close to the deliverable as possible, and choose your due date carefully.
3. Set Up Recurring Invoice Schedule
As you can see in the image below, you have some flexibility when it comes to when and how you enable recurring invoices with Square. You can choose to send immediately, or choose a set time block such as in seven days or at the end of the month. You can also select a specific date.
Here, you can also select how often to repeat the recurring invoice. You can set the schedule for daily, weekly, monthly, or yearly invoice billing. Next, select when to stop your recurring invoices. Your options are never, after a specific number of invoices, or on a specific date. You can see in the example I set up below that Iâve ordered my recurring invoices for six months and requested payment due within seven days of receipt. Iâve also enabled Automatic Payments. If my customer approves automatic payments and saves their card, Iâve just made things even easier for myself (and them)! We will revisit the card-on-file situation and what that means for you in an upcoming section. Â
Recurring Invoices can help you get paid on time for a service- or product-based subscription, of course, but you can also utilize recurring invoices to allow your customers to pay in installments. Itâs all in how you set up expectations with your customer. Make sure to lay out what is expected as far as payment for the exchange of goods or services in the Line Item section. Â
Whether you send a recurring or one-time invoice, the next steps are the same, so keep reading to find out how to fill in all of the upcoming invoice options, starting with Line Items.
4. Adding Line Items To Your Invoice
When itâs time to add items to your invoice, youâll choose from the drop-down menu. If you donât have inventory saved, you can simply type in the product or service and the price. Iâve added in ad-hoc services and prices to my Line Items in the screenshot below.
Need to add a note next to the service? Select Customize on the line item, and you can add a simple note next to the specific product or service in your invoice. Remember, the clearer you are here, the better. Avoiding confusion by adding descriptive notes can benefit you if there is a question later on down the road.
Similarly, if you are allowing your customer to pay in installments, use theÂ Line Item section to make clear what installment is being paid and the end product or service (e.g., Installment 2 of 4 for Vegan Suede LoveSeat Couch, Color: Coral)
5. Adding a Discount & Request Deposit
Under our Line Items, we can opt to Add Discount. In the example below, I applied a 25% new customer discount to this gift basket order by manually entering it into the discount fields.
Under the total, notice that you can also Request Deposit. You can request a specific percentage upfront by adding in details here. Iâve added a request for a 50% due immediately upon receipt. Whether the purchase requires you to special order materials or you are holding an item for a customer, requesting a deposit can help reduce risk to your bottom line.
6. Fill In More Options
After you have all of the main parts of the invoice filled out, there is one last section: More Options. Here you can do even more to organize and keep on top of the invoices you send:
- Set Reminders
- Request a Shipping Address
- Allow a Customer to Add a Tip
- Allow Customer to Save a Card on File
- Add Attachments
Square Invoices automatically sets up reminders, but you can select Edit RemindersÂ (as seen to the right) and edit the frequency around the due date. If you select Tipping, your customer will have the ability to manually add the tip amount or choose a percent to add to the total.
Store Cards on File For Faster Payments
Storing a card on file can save your customer time and streamline the process for everyone. When you process a payment with a card on file, it is going to cost you a little bit more in processing costs, however. To refresh your memory, processing a Card on File payment costs 3.5% plus $0.15. If your customer sets up recurring invoices and approves automatic payments, you can see how this could benefit your business over the long run, despite the extra charge.
There are a few ways to create a Card on File for Invoices. First, you can select Card on File on the invoice, as pictured above. If you select this, your customer does all the work on their end with approval. If you are at your Virtual Terminal or at the Square Point of Sale app and want to add your customerâs card to the customer director for future billing, you can do that, too.
To add a card on file, head to the Customer Directory and manually add their credit card information. Square prompts you to print out and have your customer sign their approval to save their card on file. Make sure you keep that piece of paper in a safe place!
7. Attach Files
In addition to selecting the option for your customer to store their card on file, you can attach additional files that pertain to the order. Square lets you add up to ten files (up to 25 MB worth, total). This includes JPG, PNG, GIF, TIFF, BMP, and PDF file types. Attaching files such as contracts, mock designs, or information about the sale may help support your case if there is a chargeback issue in the future, so it pays to add as much pertinent information as you can here.
Need help drafting an agreement or documents? Square provides free professional contract templates so that you can customize and attach to invoices. Use these to spell out the details in your contract, get ahead of customer expectations, and avoid payment disputes. Square provides downloadable templates including Completion of Services, Order Forms, Improvement Agreements, Sale of Goods, and more. Visit Squareâs Build Your Contract page to find templates you may need and add to your invoices or keep on file.
8. Preview Invoice & Customize Appearances
After entering in all of the most important details of the invoice, letâs see how it will look for the customer. In the upper right-hand corner of the invoice screen, I selected âPreview.â Here is what we have so far.
You’ll notice right off the bat that the Square Invoice has a pretty large banner that is currently completely unbranded. Square reminded me through the green tutorial prompt that I can update my logo, color, and business information by heading to Account & Settings.
Letâs head there next and update the banner to reflect the brand. Adjusting these setting and information is located at Receipt under Account. Note that the settings, branding, and contact information that you apply in Receipts is also reflected in the settings and branding applied in Invoices and Estimates.
Below, I uploaded a logo and chose a background color from the available colors.
After scrolling through the sample invoice preview, I also noticed that Square had my business name, address, and phone number in the footer. If youâre like me and donât have a brick-and-mortar business location, you can adjust the details of your contact information, which is what I will also be doing in Account & Settings.
All you have to do to disable location display is toggle âShow Location.â The only contact details displayed on my invoices now are my business name, and contact phone number. Just how I like it!
9. Send Invoice
Here is our finished invoice. Note that we selected that the customer can save their card on file. Additional authorization is all ready for them to click right below Billing Information.
As I scroll down in the invoice, you can see that Iâve added a short note, itemized products, and the discount. Also remember that for this order, I required a deposit before assembling the baskets. When viewing the invoice, the total balance and the due date for the deposit are laid out clearly, as seen in the screenshot below.
And that’s it! The invoice ready to send to the client.
Track Invoices & Follow Up With Customers
If you deal primarily in custom orders, or you have multiple clients, it’s quite likely you have several outstanding invoices at any given time. The good news is that with Square Invoices, you don’t need to hope you’ve remembered to enter an invoice in your spreadsheet so nothing slips through the cracks.
In the Square Dashboard,Â you have many options to sort and search for invoices. You can search for and view every invoice youâve sent by customer ID, invoice ID, invoice title, or customer email. You can also sort invoices to only display sent, outstanding, paid, scheduled, draft, and unsuccessful invoices. The other way you can sort your invoice view is by a specific date or a date set.
By selecting only to view outstanding invoices, you know who you may need to follow up with this week. Following up is easy â you simply select the invoice. As you can see in the screenshot below, a vertical screen appears to the right of your dashboard when you select the specific invoice. Here you can view the recent activity, and track when (or if) your client saw the invoice and any action taken with it.
At the bottom left, you can select Remind and draft a quick reminder message to send to your customer. Need to record a payment received by cash or check? No problem, you can manually add the amount by selecting Record Payment under the Payment Schedule section.
Pay Off The Invoice With Square POS
If your customer is standing in front of you or will be heading in to see you, the free Square POS app is a great way to take their payment. For one, if you swipe, tap or dip the card with a connected reader, you can process the payment at 2.75% rather than 2.9% + $0.30.
Here is the next payment screen. You can record partial or full payment or charge a swipe, tap, or dip a card on your connected device.
While we are here, I want to remind you that the Square POS app has all of the same invoice functionalities as far as processing payments, tracking, and yes â even setting up and sending invoices.
Sending An Estimate
Iâm happy to report that Square recently started supporting estimates. If you havenât quite closed the deal yet with your customer, or you provide a service-based business, sending an estimate is an essential step. You can access Estimates within the Invoices section.
I filled in the details of a bathroom remodel estimate below. The same branding and delivery methods apply to estimates as they do to invoices, so if youâve already set that up, you’re all set! Head back to the previous section in this tutorial,Â Preview Invoice & Customize Appearances, for a refresh on how to update logo and colors if you haven’t yet.
As you can see, the process is nearly identical to send an invoice and an estimate.Â
Is Square Invoices Right For You?
As far as making your life easier as a business owner, Square delivers when it comes to simplicity and ease of use. As far as getting paid, invoicing a client is a bit more expensive when it comes to processing credit cards, but you can send an unlimited amount of invoices for free, record check or cash payments, and get the simple tracking and reporting tools with no added fees.
If you compare Square Invoice to paper printing, mailing, and waiting, itâs no contest â Square wins hands down. But Square does have its limitations. If you are looking for advanced reporting features, integrated expense tracking, and live bank feeds, you may want to shell out some more money for a premium solution like FreshBooksÂ (read our review). Check out our Invoicing Software Comparison chart to see different options available.
That being said, I like that Square seems to be listening to their user base when it comes to improving functionality and offering more solutions, as evidenced by the recent addition of estimates this year. All in all, with Square you have everything you need to send an invoice or a deposit request and easily track activity for follow-up. If you are ready to give it a shot, set up a free Square account and start sending invoices!
Want to know more about Square? Again, don’t forget to take a look at our Square Invoices Review, and for a better look at everything Square can do for you, check out our complete, in-depth Square review!
The post How To Use Square Invoices To Ensure You Get Paid On Time appeared first on Merchant Maverick.