Effective Invoicing

• Making the invoice clear - customers usually post invoices onto the system the day they arrive at the office. Some of them start counting the day invoices hit the accounts payable department. This is a very widespread practice that allows customers to linger with payment. To avoid confusion over the due date it is advisable to state it clearly on the invoice (e.g by bolding the due date)
• Information that needs to be included on invoices:
  • Address: company name, correct address, department , contact person
  • Description of products delivered
  • Purchase order number
  • Sales order
  • Order date
  • Buyer's name
  • Order handler
  • Payment terms
  • Method of payment

Billing is an important function that has impact on the company outcome. If it's done effectively, collection will come in faster increasing investment income or decreasing borrowing expenses. It is very often skipped over when companies are seeking best ways of increasing their effectiveness and cutting costs (a solution to the problem would probably be an electronic billing widely discussed and seen as a common tool in corporate industry).