Coworking is becoming an increasingly popular option for professionals who want the benefits of working from home without distractions. If you’re one of the many people starting a coworking business, you’ll need to learn how to invoice efficiently.
Since people from different professions use coworking spaces differently, it can be tricky to track who owes what. Here’s how you can manage coworking invoicing with ease.
What are Coworking Invoices?
Coworking invoices are simply bills that space owners send to their customers. These can be weekly, monthly, or even annual charges, depending on the arrangements you’ve made with your clients.
The most important thing to remember when creating coworking invoices is to be clear and concise. Include all the relevant details, such as the amount owed, the due date, and your contact information.
You should also include a detailed description of the services rendered. This will help avoid any confusion or misunderstandings down the road.
Elements of a Coworking Invoice
Now that we’ve covered the basics, let’s look at some of the features you should include in your coworking invoices. Don’t forget that an invoice is a legally binding document.
This means that you need to be very careful about what information you include and how you word it. With that in mind, here are some of the key features to consider:
Title and Number
Every invoice should have a unique title and number. This will help you keep track of payments and ensure that each invoice is accounted for.
The title can be anything you want, but we recommend something like, “Coworking invoice for [month].” The number should be the next number in sequence from your last invoice.
For example, if your last invoice was numbered “100,” your next one should be “101.” This will help you avoid any confusion or overlap.
Another important element of any invoice is the date on which the services were rendered, and the date the bill was issued.
It’s key to be as accurate as possible here, as the date can affect the statute of limitations (the time frame in which you can legally collect a debt).
In most cases, you’ll want to use the date of service. However, it may make more sense to use the date of invoice issuance in some cases. This is especially true if you’re sending invoices out monthly or annually.
Description of Services Rendered
As we mentioned earlier, you must include a detailed description of the services rendered.
Tip: Write down and document all the details. This will help avoid confusion or misunderstandings later on.
Be as specific as possible, and include any relevant information, such as dates, locations, or space details. If you charge hourly, include how many hours the space was booked.
If you’re including expenses, such as office supplies or equipment, itemize them separately. This will make it easier for your client to understand the charges.
It might seem obvious, but it’s worth mentioning because it’s the most significant part of every invoice. Include the entire amount due, as well as any applicable tax details.
The due date is the deadline for your customer to pay the invoice. In most circumstances, you should allow them 14 days to pay. You can, however, change this based on your agreement with the customer.
Regardless, be sure to include the due date on the invoice so there’s no confusion about when payment is due.
Your Contact Information
Last but not least, be sure to include your contact information on the invoice. This will make it easy for your client to get in touch if they have any questions about the charges.
Include your name, email address, and phone number. You may also want to include your mailing address if you’re sending invoices by mail.
Wow! It is not simple to create an invoice. But don’t worry; we’ve got you covered. Save time and avoid errors by automating invoices with CoWello.
Core Principles of Billing for Shared Spaces
Now that we’ve covered the basic elements of coworking invoicing, let’s take a look at the core principles of billing for your space. These principles are:
An automated billing system helps you save time and avoid errors. It also enables invoice tracking and payments to stay on top of your finances.
Make sure to comply with local laws and regulations. This includes requirements for issuing invoices and collecting and remitting taxes. Failure to do so could result in legal complications.
A well-organized billing system helps you keep track of your finances and avoid mistakes. This means having a clear understanding of your invoicing process and keeping accurate records of all payments.
Inaccurate invoicing can lead to confusion and misunderstandings between you and your clients. Which in turn could lead to delayed payments or even legal complications.
This includes the ability to adjust prices, add new services, and offer discounts. By being flexible, you can make sure that your billing system meets the specific needs of your coworking space.
How to Manage Coworking Invoicing
Using an automated billing system via management software is one of the best methods to handle coworking invoicing. This will make the entire process easier for you and your team, as well as help to prevent any mistakes.
There are many benefits of using a management software for your coworking space. These include:
Invoicing software can help you get paid faster by automating the invoicing process. Your invoices will be sent out on time, and you won’t have to chase late payments.
Your CoWello App’s member dashboard is color-coded to show when members are approaching due date and haven’t paid. You’ll also be notified when payments are made.
Another benefit of using invoicing software is that it reduces the amount of paperwork you have to deal with. That’s because all of your invoices and payments will be stored electronically.
Invoicing software can also help to improve the accuracy of your invoices. This is because you can enter all of the relevant information into the software, and it will generate the invoice for you.
This means there is less room for errors and you can be confident that your invoices are correct.
When you store your invoices electronically, you can be sure they are safe and secure. This is because the software is password-protected, so only you will have access to your invoices.
Financial management and auditing are important aspects of any business. By using invoicing software, you can keep track of all your financial transactions in one place.
This will make it easier for you to spot any irregularities, and you can be sure that your accounts are up-to-date. This is important if you ever need to provide evidence of your income or expenses.
Invoicing is not only an important element of running a successful coworking space, but it is also a legal necessity that no management wants to deal with. Streamlining your billing process using coworking management software can help you guarantee the information and format are correct. Not to mention, it will save time and money in the long run.