Invoicing Best Practices

Sift Media
Share this content

Adult Sea Otter (Enhydra lutris)  in Morro Bay, CA - This is one of my better photos Invoicing customers is a critical function of most organizations and good invoicing practices result in better collections of receivables. Organizations that fail to invoice in an efficient manner are missing an opportunity to improve cash flows and increase collection rates. Accelerating payment on customer accounts is essential for improving cash flows of an organization and for minimizing the opportunity cost associated with financing customer accounts. When collections cycles continue to get longer there is also an increasing risk of doubtful accounts. Using simple invoicing best practices such as the following, can help accelerate turnaround time on customer payments, reduce doubtful accounts and avoid unnecessary mail delays or float due to incorrect addressing. Best practices: 1. Include a windowed or pre-addressed return envelope with the invoice. 2. Include a detachable remittance advice with the invoice for the customer to return with the payment. 3. Send first invoice requests 30 days prior to the due date of the invoice. 4. Send the follow up second request within 15 days of the due date of the invoice. 5. Send invoices in multiple mediums, preferably electronically and by fax as well as by mail. 6. Review the accounts receivable aging weekly and send past due notices and make any follow up calls as soon as accounts enter past due status. For tips on improving efficiency and reducing risk, signup for the Controlzkit newsletter here.


Please login or register to join the discussion.

Mar 16th 2017 10:15

Implementing the right invoice is vital in business to deliver our services and brand. Once we have decided the invoice process then make sure every invoice is accurate and complete with correct contact information and amounts. Therefore, I found business envelopes as an efficient tool to manage invoices professionally and in good manner. I recently ordered business envelopes engraved with my company’s logo and signature from It really looks good and helps in promoting our business too.

Thanks (0)