Avoid Collection Problems with Action Invoices
June 2008
Having the money you're owed sitting in someone else's bank account can seriously interfere with your business' cash flow. If many of the clients or customers you invoice are slow payers, maybe it's time to look at your invoices; they could be contributing to your collections problem.
Does the invoice you're sending out encourage action or inaction? For example, many invoices are simply marked, "Payable upon receipt". Invoices so labeled are saying to your customers or clients, "Pay me when it's convenient for you," instead of "Pay me now." Those inclined to be slow payers will find the built-in excuse especially convenient; we've all heard the line "The cheque's in the post!"
Worse, some invoices have boxes such as "current", "30 days", "60 days", "90 days", and "over 90 days" that broadcast the aging of the account that's due. Using an invoice that's formatted this way is also broadcasting to those inclined to be slow payers that you're willing to serve as a creditor; there's no reason to pay you right away.
Instead of using invoices that encourage inaction, use invoices that encourage prompt payment. All of the invoices you send out should state a specific date of payment, such as "Due on November 30, 2001", rather than "Payable upon receipt", or "Due in 30 days".
People are much more likely to pay attention to a specific payment date, and you eliminate the possibility of misunderstanding.
Don't let your invoices contribute to collection problems and make your prompt payers feel as if they're being unfairly treated. Using invoices stating specific dates that payment is expected will help get the money you're owed flowing into your bank account.
Any changes you need to make can be achieved easily with Diamond’s stationery design tool. You can create professional and effective invoices quickly and easily.
Before you start make sure you take a backup of your existing stationery formats - the easiest way is to copy the existing stationery formats to a different non functioning company. Then using the Stationery Design menu option, select the stationery you want to amend, use the label tool to add messages, and the OLE control to add pictures.
You can see what your finished item will look like at any time by selecting Print Preview from the view menu.
There is a ‘Stationery Design’ section in our online help file, which should answer any questions you may have. But if you would like some more help or training on how to get the most out of our stationery design tool please give us a call.
If you would like more information please contact Margaret on 0845 223 2170