5 QuickBooks Invoicing Tips for Faster Payment

Shrewd accounts payable departments (and there are many out there) are just looking for ways to delay payment on YOUR invoice which allows them to hold on to THEIR cash longer.

To improve your cash flow and help minimize the potential for a delay in payment (unfortunately, we can't eliminate the potential completely!), make sure the invoices you send out of QuickBooks contain:

1. The correct mailing address for your customer - many businesses have a dedicated PO box they use for vendor invoices. Make sure to inquire at the time your customer places their order what the correct mailing address is. As you have probably discovered, this one small detail can doom the chances for a prompt payment.
   
   Better yet - e-mail the invoice directly to the person responsible for payment. It gets there faster and you save on postage, paper and printing costs too!
   
   
2. Your payment terms - it is amazing to me how many invoices I receive that don't have any reference to payment terms on them. If you are expecting payment in net 15 days, make sure your invoice reflects that. At a minimum, this sets your expectations in writing (your customer can't claim "you never told us what the terms are"!). Many businesses also include a field for "due date" that puts the expected payment date clearly in black and white.
   
   
3. The correct remittance address for your business - while your invoice may look really pretty having the corporate logo on it and all, it may not be functional if it is missing your mailing address. If the accounts payable department has to look up a mailing address, it's just one more reason for them to "do it later" - and you know what that means.
   
   
4. Customer purchase order # and/or other special information - in many cases, if your invoice doesn't have the purchase order number in it, consider the invoice dead on arrival. Same goes for other special wording or identification that your customer has requested. Make sure to read their purchase order carefully when received or ask upfront so you know what information they are requesting to appear on your invoice.
   
   
5. The correct pricing, quantity and description of the items being sold - if your invoice details don't "match" those contained in your customers' accounts payable system, your payment is very likely going to get derailed. I worked with a client recently that was doing work for a very large company - if their invoice description did not match the purchase order letter for letter (even if it was wrong on the purchase order!), it was not paid. A few extra seconds checking invoice details before sending them out can save you extra days or weeks when it comes to getting paid.
   

Great news! QuickBooks provides the customization tools you need to ensure the invoices you send out have the information necessary to improve your odds of being paid on time. I'm thinking of putting a webinar together on the topic of customizing invoices in QuickBooks. If you're interested, please post a comment below.

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Scott Gregory is a specialist with QuickBooks Pro, Premier, and Enterprise software. In a prior work life, he was also the CFO for a $15 million business. Connect with Scott at Bottom Line Accounting Solutions.

Comments

[Ariel]

This is why i visit you site daily. Great read thanks. Incidently http://www.rapidmediafire.com has a similar topic.

[business invoicing software]

Thanks for the tips, I will try your tips in our business, you see, im only novice in quickbooks, so i'm still searching some tips in making faster transaction and more accurate.

-kim