You now have a solid and organized accounts receivable system. You’ve established firm sales and credit policies. Now it’s time to create your invoice.
Every invoice should include the following:
- The product or service sold
- A breakdown of expenses involved (if relevant)
- The amount due
- The due date
Reflecting your organized accounting system and your policies, your invoices should be clear, professional, and straightforward. Place your company logo on every invoice. Consider indicating on the invoice a small percentage discount for payments that are made promptly, before the specified due date.
The way you craft the wording on an invoice can bring certain advantages. According to Mitch Solway, vice president of sales at FreshBooks, an online bookkeeping and invoicing company, “Think carefully about the actual wording on the terms you apply on your invoices. Being polite and asking for payment within 21 days seems to get our customers paid a lot faster than terms such as ‘due on receipt’ or ‘due immediately.’”
By communicating with your customers in a very human way, as opposed to employing a cold “just business” approach, you create respect and a positive rapport which, in turn, will foster speedier payments.
In this three part series “Setting Up Your Accounts Receivable System” we have conveyed the same theme that has consistently appeared in our most recent articles: structure, diligence, communication, and consistency are your most powerful tools for cultivating productive customer relationships and ensuring that your cash flow is not adversely impacted.
The Jayaram Law Group routinely and successfully assists its clients in their business-to-business (b2b) collection needs. We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.
If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting www.jayaramlaw.com.