You open two envelopes in the office. Both have invoices for exactly the same amount. Dated the same date and with the same trading terms. Both are for services. Neither service is more important to you than the other. The only difference is the phrasing next to the amount due.
Invoice #1 says “Nett 30 days” or “Strictly 30 days” somewhere on the invoice. (“Strictly” … really?)
Invoice #2 boldly states “This invoice is due and payable on or before 15 November 2014”.
Answer these two questions. Quickly.
1. When’s payment due for Invoice #1?
2. When’s payment due for Invoice #2?
Easy to answer the second one wasn’t it? So, make it easy for YOUR customers to pay YOUR invoices by being sure to put these on your invoices
• a specific pay-by date.
• your bank BSB and Account Number.
• any other payment options (if any – have you considered accepting PayPal?).
• an invoice and/or account number (clearly displayed).
• a contact phone number.
In many instances, your invoice is the first time you’re asking for money. So it’s really important to be very clear about
• how much is due,
• when it’s due by and
• how easy it is for your account customers to pay it.
Life’s much harder if you don’t.