How To Invoice Someone in Canada
February 17, 2022
Canada is the United States’ neighbor to the north, which means there’s plenty of overlap between economies. In particular, many U.S. businesses find customers in Canada, and Canadian customers choose American products and services for their accessibility and excellence. And while there’s a strong partnership between the two countries, there are still hiccups in the invoicing process.
Knowing how to invoice someone in Canada is a bit different than invoicing someone domestically—even with the similarities between North American economies. Any time money moves across borders, there are additional factors to consider. Such is the case for U.S. companies sending invoices to Canadian customers and clients.
If you’re thinking about prospecting business north of the border, make sure you know how to invoice someone in Canada. Here’s a closer look at the process and some of the implications to be aware of.
Information needed to generate an invoice
No matter where in the world your customer lives, they’re entitled to an information-rich invoice. What does that mean? Really, it’s about putting all of the pertinent details of a transaction into the invoice, so recipients can read, review, audit and pay it with peace of mind. For starters, most invoices should contain the following data:
- The issue date, payment due date and NET terms
- Sender and recipient names and contact information
- A unique and identifiable invoice number (for auditing)
- The full amount due for the products or services being invoiced
- A description of the scope of work being invoiced
- Approved modes of payment and/or ways to pay the invoice
It’s also important to be mindful of currency when sending an invoice to someone in Canada. There may be some currency conversion involved, since the Canadian Dollar (CAD) is valued differently than the United States Dollar (USD). It’s best-practice to adjust the invoice for CAD and note the exchange rate, although you can also send a discounted USD invoice to account for the conversion burdened by the recipient.
Use data capture technology for paper invoices
One of the best things about having a customer base in Canada is that they’re so close. If you need to send a paper invoice, you can; however, it’s often best for both parties to send a digital version. This requires a platform like Veem, which can instantly digitize a paper invoice using data capture technology. Drop an image of the invoice into the platform and watch as the data is extracted and reformatted into a digital invoice that’s ready to be sent in seconds. Digital invoicing makes it easier to send, receive and pay an invoice, and there’s always a digital record for auditing purposes.
Create pay links and payment requests
Another important part of sending an invoice to someone in Canada is actually getting it to them. Here again, Veem offers a simple solution: Pay Links. These links are individualized, secure links that take recipients directly to their hosted invoice, where they can pay instantly. No more sending attachments or using portals—instead, just drop the Pay Link into an email or text message and send it right to the recipient in a payment request.
The other great thing about Pay Links is their transparency. Senders can see when a recipient last viewed the link, even if the invoice remains unpaid. This is great for recordkeeping and provides great peace of mind when it comes to doing business with someone in Canada.
Don’t forget to integrate!
The last—and most important step—for businesses sending invoices to customers in Canada is to make sure they have the integrations in-place to sync digital payments up with their bookkeeping and banking software. Once Canadian customers pay, businesses need to ensure the money gets to the right account and that the transaction appears correctly in the accounts receivable process. Automations ensure this happens accurately and in real-time. It’s an all-important step in ensuring the predictability and manageability of international cash flows.
Using Veem to invoice someone in Canada
Sending an invoice to someone in Canada is easier than you think, but what makes doing business north of the border even more fruitful is convenience. Using Veem, businesses can quickly create and send invoices, and recipients can just as easily view and pay them. It’s a win-win solution that’s rooted in convenience and simplicity. The result? Invoices that are easier to track and audit, with payments that are on-time and in-full.
Ready to create, customize and manage your invoices like never before? Schedule a demo with Veem today and learn how to make invoicing the easiest part of doing business abroad.