Just finished a project and got paid. Now I’m wondering about the best way to mark invoices as paid for my records. Do you guys update the original invoice or create a separate document?
Trying to figure out a system that’ll make tax time less of a headache. What’s worked for you?
I use a basic spreadsheet to track everything. One column for invoice numbers, another for amounts, and one for payment dates.
When a client pays, I update the spreadsheet right away. Makes it easy to see what’s paid and what’s still open.
For the actual invoice, I just write ‘PAID’ on it and file it away. Simple, but it works. Keeps everything clear for tax time without any fuss.
I’ve tried a few different ways over the years. Here’s what’s working for me now:
Original invoice: Keep it as-is in my records.
Payment tracker: Simple spreadsheet with columns for:
Receipts: I send these to clients after payment, showing:
This setup keeps things straightforward for me and my clients. Come tax time, I’ve got all the info I need without digging through a mess of altered documents.
Bonus tip: I set calendar reminders to check my payment tracker every month. Helps me stay on top of any stragglers without having to constantly think about it.
I just write paid on the paper and stick it in a folder. Works fine for me.
I just scribble ‘PAID’ on the invoice copy and file it away. My spreadsheet’s got the dates and amounts. Works for me and keeps the taxman happy.
I update the original invoice PDF. Just open it, slap a big red PAID stamp on it, and add the payment date. Takes 30 seconds tops.
For tracking, I keep a simple spreadsheet. One tab for invoices sent, another for payments received. Each row has the client name, invoice number, amount, and date. Makes it super easy to see what’s outstanding and what’s come in.
Come tax time, I just hand over the spreadsheet and the stamped PDFs to my accountant. She loves it because everything’s clear and organized.
Took me a few years to figure this out, but it’s been working great for the last 3-4 years now. Keeps things simple and I always know where I stand financially.
I keep it dead simple. Original invoice stays as is. Got a basic spreadsheet with client, invoice number, amount, and paid date. That’s all you need.
For the client, I send a quick receipt when they pay. Just the basics: invoice number, amount received, date.
Come tax time, I hand my accountant the spreadsheet and a folder of invoices. Never had an issue.
Don’t overcomplicate it. As long as you can see what’s paid and what’s not, you’re good. Just pick a system and stick with it.