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Your customer needs to know what methods they can use to pay. Do you accept checks? Can the customer pay by credit card, cash, or other payment processing system? If the only way the customer can pay is to come into your store in person, let them know that. Other options include mailing in a payment (either check or credit card number), calling in a payment (credit card number), or paying online. Your customer needs to know when they need to pay the invoice by. Include a due date prominently on your invoice. You can even include it more than once. One place to include it is down near the total amount due, but at the top is also a good option. Payment should always have a due date with a consequence if not met (for example, interest charged on late payments). You might also include an incentive for early payment (like a 2% discount if paid in ten days), since most small businesses have constant cash flow problems. You should also discuss whether you have a payment plan option. You can include the information with the letter, or write something like, "If you can't pay your bill all at once, call our office to set up a payment plan." Once you're done creating the invoice, send it to your client. It will let your client know they need to pay what is owed you. Make sure to make your company's name prominent on the outside of the envelop. Invoices should be coordinated with accounting system. An invoice, once written, becomes an asset of the company (Accounts Receivable) and should be properly recorded. If you use accounting software, you may have the option to let the software create an invoice for you. Services like PayPal also have built-in invoice creation. . If you don't get a response from the customer after sending your invoice, try making a phone call to make sure the invoice was received. Another option is emailing the client a reminder. It's important to have a well-defined and standardized collections process so that you can more easily collect on your invoices. You can also send out reminders through the mail. How many you send out before a "final payment" notice is up to you. It's important to reiterate you have a payment plan option if you're willing to let the client pay it out over time. Once you've sent out as many as you're willing, you can send out the "final payment" notice that lets the client know you're turning it over to a lawyer or collection agency. To establish a system, try having specific collection actions spaced out regularly across your collections period. For example, try sending notices after the balance has gone unpaid for 15 days, 30 days, 45 days, and so on. Each can specify how many days are left until payment and what actions will be taken if the balances goes unpaid. Try sending at least one notice by certified mail, so you know the client received it.
Add payment options. Include a due date. Send the invoice. Collect on your invoices