August 7, 2019
There are many ways to send an invoice. These are two of the most effective methods of invoicing to make sure you are getting paid on time.
Sending out the invoice as close to the time of the order speeds up payments and eliminates a number of potential problems. Issues regarding the charges can be addressed immediately, rather than getting put off to the side. You can immediately double check that everything which was charged was received / performed. The transaction is fresh in everybody’s mind so there is a smaller chance of forgetfulness on one side or the other.
This is a friendly follow up which addressed the same issues as the first method. When you ask for proof of receipt of the invoice the next day if digitally invoicing, it forces customers to acknowledge the invoice has been received and is processing or to tell you right away they need it resent. It’s always amazing how many important emails get caught in a spam filters, overlooked or how bills get stuck in a approval loop.
Calling shortly thereafter if you don't get a response is also extremely effective, if you catch them, you can ensure that your client understands and accepts the charges as well. This minimizes any confusion and risk of clients paying late because they feel there is a discrepancy in the charges with what they received.
Following up on accounts receivable is probably not the reason you got into business (unless you’re in the AR business) and it can take valuable time away from other important tasks. But it is necessary. The better the accounts receivable process you have in place, the more time and cash you have to make your own business thrive.
Get free invoice and accounts receivable templates and suggested workflows at Armatic.com.
BY Alyssa LeBlanc
BY Max Golovnia
BY Alyssa LeBlanc
Armatic Co-founder and CRO