Invoicing Fundamentals

Invoicing your clients can be done in one of several ways.   It’s important to inquire how your client wants to be invoiced to ensure that you are invoicing them according to their contract terms.  Being non-compliant with their contract invoicing terms could lead to delayed payment.

You should also determine how they want to receive their invoices: First Class mail? Email?  Online, by entering into their own invoicing system?  Or, do they not want to receive invoices at all and prefer to pay using a 3rd Party automated system?

Invoicing Schedule Types

The invoice schedule alternatives are Daily, Weekly, Bi-weekly or Monthly on a specific day.  Clients may also prefer to receive invoices on a Fiscal Monthly schedule, such as once a month based on either a 4-week month or a 5-week month, or the client can request to be billed once services/goods are received. 

Again, it’s very important to find out how often your client is expecting you to invoice them to avoid payment delays.

Invoice Formats

Invoices should be created based upon your clients’ needs. Do they require a purchase order to be referenced on their invoices?  Do they want a breakdown by project, accounting code, etc.? This is something that should be listed in your contract (especially if a purchase order is required). It should be discussed at the outset to ensure that you deliver the invoice format that your client is expecting.  Payment delay could arise from not having your invoices formatted in the correct manner.

Want to learn about creating invoice templates? 
www.diversified-credit.com/Invoicing.php  

If you have any other suggestions for making the Invoicing process go smoothly, or perhaps an example of what can go wrong when the process doesn’t meet client expectations Let us Know Below!

The accounts receivable is one of the largest assets for any business. It is crucial that it is healthy and current.

When we say healthy we mean good sales = good receivables. Check your potential client’s credit. Can they afford to pay for your product or services? Let them prove that they are credit worthy.

When we say current we mean most of your receivables are in the current column, 70% to 80% or better.

Collecting your receivables is vital to the survival of your business. Once an invoice ages (the day after your due date) you should be contacting your customer for payment, whether it is by telephone or email. Always contact your customers when they exceed your payment terms, don’t wait until they become 30, 60 days past due.

Diversified Credit Services, Inc. is located in Woburn, Massachusetts. Our company has been providing accounts receivable services to businesses since 1991. We specialize in collecting your accounts receivable as soon as your invoices become due, we invoice/bill your customers, we apply your cash receipts including checks, ACH, wires and credit card payments and we verify bank and trade references to establish a line of credit.

Diversified Credit Services, Inc. has two other companies - Highland Collection Agency and Diversified AP Solutions.

Highland Collection Agency provides business to business debt collections. We step in when you have exhausted your internal efforts and need assistance. There is no fee unless we collect! Check out our website at www.highland-collection.com .

Diversified AP Solutions provides accounts payable processing for businesses, large and small. We receive your invoice from vendors, receive approval for payment, enter/code the invoice(s) for payment in your system, process your check run and reconcile at month end. Check out our website www.divaps.com.