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Best Practices for Online Invoice Payment Processing

For many business owners, the process of sending out invoices and chasing payments is a stressful responsibility. Most small businesses are understaffed and don't have personnel dedicated to managing their invoicing process. But there are ways to make the online invoice payment process smooth and simple. In this article, we will review the top five tips all small business owners should follow to successfully manage online invoice payments.

5 invoicing essentials for small businesses 

  1. Itemize all charges 
    It is important to include a detailed description of each item when you send out invoices. This means including an item or service name, SKU (if applicable), number of units (whether that’s a product, or a time period for consulting services), price per unit, and total price. Your document should clearly articulate exactly what your customers purchased and what they owe. Check out this article to learn more about payment terms on invoices.
  2. Include details about the terms of payment 
    If you want to receive payments on time, it’s essential that you clearly articulate the timeline and due date on your invoices so that your customer is aware of your expectations. Typically, 30 days is a standard timeframe, but some businesses may expect a 14-day payment turnaround. As part of this, ensure that the invoice issue date is clearly marked, as well as the payment due date. Include an individual invoice number on each document to make it easy to reference when reviewing your books or communicating with customers about missed payments.
  3. Provide online invoice payment options 
    While mailing checks was a standard payment method in the past, today’s online payments landscape means that small businesses should offer this option. Most people like the convenience of paying online, and you'll ensure you get paid faster by providing online payment options for your customers. By enabling online invoice payment processing, your business makes it easier for your customer to pay when they receive the invoice, and for you to get the funds faster as a result. Whenever possible, opt for an invoicing program that connects directly with online invoice payment options, like Modern Receivable
  4. Communicate professionally 
    The entire invoicing process must be handled with a high level of professionalism. Include a friendly note with your email when you send the invoice and follow up with a thank you email upon receipt of payment, including a confirmation for your customer to keep on record. Plan to send out periodic reminders if you don’t receive a payment. Consider automating those reminders to keep them professional and timely. Platforms like Modern Receivable provide templates for email and SMS communications that you can customize to meet your needs.
  5. Keep it clear and simple 
    As a general guideline, keep the invoicing process clear and simple for your customer. Make sure the document itself—including the wording and formatting—is easy to understand. Choose a layout and fonts that match your branding but that won’t obscure the essential details of your request. 

Automate your receivables and invoices 

Make it easy to process online invoice payments, send out reminders, organize invoices, follow up with customers, and track receivables by using our automated software. With Modern Receivable, take the stress out of the invoice management process and let our service ensure you get paid on time.