Invoicing and Accounts Receivable: Get Paid on Time

The Invoicing Golden Rules

1. Invoice immediately: Same day as service, ideally on-site
2. Make payment easy: Link to pay online, multiple options
3. Be clear: What was done, what's owed, when it's due
4. Follow up: Systematic reminders, not random

What Every Invoice Needs

PROFESSIONAL INVOICE: Your business name and logo Your contact info Invoice number (INV-001, INV-002...) Invoice date Due date Client name and address Vehicle info (year, make, model) Service description: - Full Detail - 2022 BMW X5 - Ceramic Coating - Gtechniq Crystal Serum Amount: $1,450.00 Payment terms: Due upon receipt Payment methods accepted: □ Credit/Debit Card (link to pay) □ Check payable to [Business Name] □ Venmo @BusinessHandle Thank you for your business!

Payment Terms

Residential Clients

Due upon receipt or Due on completion

For most residential work, payment at time of service is standard. No net-30 needed.

Commercial Accounts

Net 15: Payment due within 15 days Net 30: Payment due within 30 days (dealers, fleets) Consider: 2% discount if paid within 10 days (2/10 Net 30) Late fee: 1.5% per month after due date

Large Jobs ($1,000+)

Use deposit + balance structure:

• 50% deposit to schedule
• 50% balance on completion
• Or: 50% deposit, 50% before vehicle leaves

Following Up on Late Payments

DAY 1: Invoice sent DAY 3: "Friendly reminder" if unpaid DAY 7: Second reminder DAY 14: Phone call + firm email DAY 21: Final notice, mention late fee DAY 30+: Collections consideration

Day 3 Reminder (Friendly)

"Hi [Name], just a quick reminder that invoice #[XXX] for $[amount] is due. You can pay easily using the link below. Let me know if you have any questions!"

Day 14 Reminder (Firm)

"Hi [Name], I wanted to follow up on invoice #[XXX] for $[amount], which is now [X] days past due. Please arrange payment at your earliest convenience. If there's an issue, let me know so we can work something out."

Day 21+ (Final Notice)

"Hi [Name], invoice #[XXX] for $[amount] is now significantly overdue. A late fee of [X%] has been applied per our terms. Please remit payment within 7 days to avoid further action. I'd prefer to resolve this directly — please reach out."

Preventing Late Payments

• Collect at completion: For residential, best practice is payment before you leave
• Card on file: Auto-charge after service
• Deposits: Reduces balance owed, increases commitment
• Clear terms upfront: State payment expectations before work begins

When to Write Off or Escalate

After 60-90 days of non-payment:

• Small amounts ($100-200): Often not worth the time. Write off and don't serve again.
• Medium amounts ($200-1,000): Small claims court is an option ($50-100 filing fee)
• Large amounts ($1,000+): Consider collections agency (they take 25-50%)