When customers owe your business money for a product or service received, it’s common to prepare and send an invoice to give them the information they need to pay it. Sending detailed invoices in a timely manner is one of the most important things your accounts receivable department can do to ensure prompt payment of outstanding invoices. Below are several tips for what to include on an invoice to avoid having customers claim they didn’t understand the terms. This is a common reason for delayed payments or even refusal to pay an invoice.
Most Important Things to Include on an Accounts Receivable Invoice
Although every company formats its invoices slightly different, it’s important to include the following information at a minimum:
- Names and complete, accurate mailing addresses for both your company and the company receiving the bill.
- The date your accounts receivable department prepared the invoice.
- A detailed description of the goods or services for which your company is requesting payment.
- Name and contact information for at least one person familiar with the deal from each organization.
- Specific terms of the invoice, including payment due date, consequences of late payments, who to contact with questions, and any special savings for paying early.
- Next to the description, indicate the number of items ordered and the quantity of each.
The person creating the accounts receivable invoice shouldn’t hesitate to contact the customer if he or she doesn’t have all the necessary information to complete it.
Other Tips to Consider
Creating a unique invoice identification number allows for easier tracking within your company’s internal systems. This is the best way to prevent mixing them up. An invoice number also makes a simple reference point when customers call your company with questions. Adding a message box to the invoice thanking customers for their business is a nice extra touch that can help customers feel that your business truly does appreciate them.
Need additional tips to manage your business finances more efficiently? Schedule an appointment with an Acquisition Capital consultant today.
