How to Invoice Your Electrical Customers (Free Template)

Invoicing is essential to virtually every business, but for contractors and service providers—and especially electricians—there’s a specific process for turning completed work into a paid bill. And it should come as no surprise that this process begins and ends with prompt and effective electrical customer invoicing.

Our step-by-step guide to invoicing electrical customers will help you understand why invoicing is crucial, how to set clear payment terms from the outset, what information to include on an invoice, and how to track payments and take action if payments are not received on time. 

The importance of invoicing electrical customers

When it comes to invoicing, it goes without saying that prompt, accurate, detailed, and official invoices are essential. Keep in mind that an invoice that’s formatted and sent promptly not only reflects the professionalism of your business and leads to faster payment but also serves as a necessary legal record of the services your business has provided. It’s also an essential piece of the puzzle for accurate financial reporting and estimated tax payments.

Here’s a step-by-step guide designed to walk you through how to invoice your electrical customers.

1.    Clarify all payment terms from the beginning

While all businesses function a little differently, one thing is certain: electricians and electrical companies must be clear about payment terms when an estimate is provided, if not sooner. When work begins, ensure that your clients and customers understand the payment schedule, including the payment methods your business accepts, the exact payment due date, and any potential late fees or additional charges that may apply if payment is not received on time.

While it’s good business to discuss these terms verbally if and when appropriate, all such terms should also be included on the invoice. Having a customer sign an estimate beforehand is highly recommended. That estimate, too, should consist of payment terms and other relevant details.

2.    Choose an invoicing method

The best way to create, send, and manage invoices depends on the size of your business, your technological preferences, and what works best for your customers and your accountant. 

Manual invoicing means using a platform like Microsoft Word, Excel, or Google Docs or Sheets to generate simple invoices. Invoice templates may even be available on these platforms, which you can customize with your electrical company’s name and logo. 

While manual invoicing may seem like the easiest and least expensive option, manual invoices may lack the professionalism your business desires. Beyond the look and feel of manual invoices, many electrical companies find that manual invoicing is prone to human error and difficult for record keeping over time. Invoicing is essential for your bottom line, but if it’s not streamlined, it can quickly become an administrative burden for your business. Generally speaking, the larger your electrical business grows, the more challenging it becomes to manage manual invoices. 

Many electrical businesses opt for invoicing software or accounting software like QuickBooks to send invoices. These methods are a better option for most businesses—they’re easy, automated, and often come with a slew of benefits such as digital payments. However, many businesses still find it challenging to keep their invoicing processes separate from the rest of their workflows. After all, invoicing often relies heavily on accurate inventory and service data.

Sortly eases this burden by connecting your inventory management workflow directly with your invoicing workflow, thanks to our built-in invoicing feature. You can easily create an invoice in Sortly, connect that invoice to existing inventory data, and even sync that invoice with QuickBooks Online, making it the best of both worlds.

3.    Include the correct details on the invoice 

Regardless of how you decide to invoice your customers, it’s essential to create an invoice that’s detailed enough to protect your business from any potential disputes. Your invoice should include:

• Key business details, including the business name and logo, address, phone number, and, if applicable, a license number.
• Key customer details, including the customer’s name and billing address, and the site where work was performed
• A unique invoice number
• An invoice date and due date, plus payment terms

You’ll also want to include a detailed description of work, which should be broken down into line items. Include labor, permits and fees, any equipment fees, rental fees, or subcontractor fees, plus details about all the materials used. Inventory software like Sortly makes it easy to track materials usage on the job. 

Finally, you’ll want to include the job’s subtotal, taxes, and grand total. Additionally, at the bottom of the invoice, include payment instructions if they aren’t provided in an attached letter or email. The best practice is to include both in an email or note and on the invoice itself.

Don’t forget to include any terms and conditions at the end of the invoice as well. For electrical companies, these terms and conditions often pertain to warranty information for materials and equipment, and the amount of time the electrical company will stand by and repair work.

Free Ebook: Track Supplies & Consumables Like a Pro

This easy, comprehensive guide can help you:

• Create an inventory list for supplies and consumables
• Automate reordering with alerts and expiration reminders
• Perform inventory audits for consumable inventory

4.    Invoice customers right away

As soon as work is performed and completed, invoices should be sent to customers promptly. Alternatively, if you’ve established a schedule of milestones with your customer, you’ll want to send invoices as soon as those milestones are met.

Some electrical companies also like to send payment reminders. Typically, electricians don’t send such notices until the customer misses a payment. At that point, it’s widely considered appropriate to send a friendly reminder within the first week. By week two, that message can be firmer. And finally, after a month, it’s certainly worth picking up the phone to touch base with a customer.

Keep in mind that most payment oversights are mistakes, and once you contact your customer, it’s likely you’ll be paid promptly.

5.    Maintain good invoicing records

Regardless of how promptly your customers pay invoices or what sort of invoice management system your business decides to use, you should archive all invoices (either digitally or physically) for as long as necessary. Ask your business accountant about the recommended duration to keep invoicing records.

Sortly’s invoicing makes record-keeping simple and practical. Beyond just generating invoices, it automatically captures your inventory data. This is invaluable for businesses that require both internal tracking of supplies and materials, as well as detailed, itemized lists on customer invoices.

Electrical Customers Invoicing Template

If you’re not ready to use software to create an invoice for your electrical customers, this download can be a good place to start. It’s yours to customize, too! 

About Sortly

Sortly is an inventory management solution that helps you track, manage, and organize your inventory from any device, in any location. We’re an easy-to-use inventory software that’s perfect for businesses of all sizes. Sortly builds inventory tracking seamlessly into your workday so you can save time and money, satisfy your customers, and help your business succeed.

With Sortly, you can track electrical inventory like supplies, parts, tools, equipment, and anything else that matters to your business. It comes equipped with smart features like barcoding & QR coding, low stock alerts, customizable folders, data-rich reporting, and much more. Best of all, you can update inventory right from your smartphone, whether you’re on the job, in the warehouse, or on the go.

Whether you’re just getting started with inventory management or you’re an expert looking for a more efficient solution, we can transform how your company manages inventory—so you can focus on building your business. That’s why over 15,000 businesses globally trust us as their inventory management solution.