Here’s Your Checklist For Effective Invoices
Of course, I assume the invoice shows the amount due, and the items purchased. But that’s just the beginning… >>> 1. Does the invoice include a specific due date? <<< An invoice isn’t a suggestion-but an invoice without a due date can certainly be mistaken for one. Make sure your customers understand exactly when payment is due. “Payable on receipt” is usually less effective than a specific due date. >>> 2. Does the invoice tell the customer exactly how to pay? <<< Be explicit. Tell the reader of the invoice exactly how to respond. Here’s a good example: “Make checks payable to XYZ Corporation, and mail to XYZ Corp World Headquarters, 1 Widget Plaza, Peoria, ILL 61606, or pay online at widgetsareus.com” >>> 3. Does the invoice include a phone number the customer can call if they have questions? <<< Don’t make it hard for your customers to pay you. Include a phone number (that’s answered by a live person, if possible.) >>> 4. Does the invoice include your payment terms? <<< The invoice is a great place to remind the customers of the payment terms they agreed to at the beginning of your business relationship. Most bookkeeping and accounting software allows you to include this item in your invoice template. >>> 5. Does your invoice include a description of the penalty for late payment? <<< You can remind customers that there will be consequences for late payment. (And, believe it or not, you can do it without being snarky or threatening.) Happy invoicing, P.S. Sometimes it takes more than perfect invoices to keep cash flowing. Is your business is feeling the pinch from the down economy? If the banks aren’t making loans, why not give us a call at 954-510-0328? (The good news: unlike most banks, we’re still lending.) Bob Levin |
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