When it comes to bookkeeping, cash flow is everything. If your invoices are unclear or your collections process is weak, you’ll end up chasing payments instead of focusing on growing your business. Whether you’re using QuickBooks, a Fractional CFO, or handling finances yourself, these six steps will ensure you get paid on time—without the hassle.

1. Make Your Invoice Crystal Clear

Not all invoices are created equal. If your customers have to squint, decipher strange fonts, or guess where the due date is, you’re making it harder for them to pay you. Here’s how to fix that:

• Keep it readable – Your logo might look great, but don’t let fancy fonts get in the way of clarity.
• Highlight key details – Your invoice number, invoice date, and due date should be clear and positioned in the upper right-hand corner.
• Spell out what you sold – What’s obvious to you might not be to your customer’s AP department. Make descriptions simple enough that a fifth grader could understand them.
• Include an “Attention” contact – If your invoice isn’t addressed to the person who made the purchase, it might disappear into a corporate black hole.
• Make payment easy – Provide multiple payment options, including a customer portal, online payments, and the classic “Make check payable to…” with a clear remit-to address.

A well-structured invoice removes guesswork and speeds up your payments.

2. Collect Your Money (It’s Yours, After All)

It’s your money—you have every right to collect it! Don’t feel awkward about following up. Cash is king, and if you’ve delivered as promised, you should get paid.

That said, keep it professional. If a payment is late, don’t take it personally—it’s just business. Make the collection call, send a polite reminder, and be persistent. The more proactive you are, the better your cash flow.

3. Send Statements Regularly

Statements serve as a friendly nudge to your customers, ensuring they stay on top of their payments.

• Establish a routine, such as sending statements on the 15th of every month—no exceptions.
• Send statements even if an invoice is only a few days old; it keeps the customer informed.
• Statements help customers reconcile their books, request missing invoices, and avoid disputes.

Your statements should follow the same best practices as invoices—easy to read, clear payment options, and a contact person in case of questions.

4. Offer Early Payment Discounts & Late Fees (Strategically)

Want to encourage faster payments? Consider offering an early payment discount or applying late fees—but do it smartly.

• Example: If your terms are Net 30, offer a 5% discount for payments within 14 days.
• On the flip side, apply late fees after 45 days, but communicate them clearly in your contracts.
• If you charge a late fee, don’t just deduct it from an account—send a formal invoice with an invoice number.

No one likes penalties, so use them as a last resort. But when necessary, ensure transparency in communication.

5. Automate, Automate, Automate

Automation is your best friend in bookkeeping and collections. Set up your system to:

• Auto-generate and email invoices (who still sends paper invoices anyway?).
• Send statements automatically on a set schedule.
• Issue polite past-due reminders before penalties kick in.
• Notify customers of approaching early payment discounts.

For example, schedule an email four days before the early payment deadline reminding them of the 5% discount. Then, send another two weeks before the late payment penalty kicks in. Make it painfully easy for them to pay—include payment links, addresses, and clear instructions.

6. Build a Customer Portal

A customer portal saves everyone time by giving your clients self-service access to:

• Invoices and statements
• Payment options
• Contracts and support cases

With an intuitive portal, your customers can quickly retrieve what they need, reducing the number of emails and calls your team has to handle.

Final Thought: Be Nice

In the wise words of Dalton from Roadhouse (yes, Patrick Swayze’s character): “Be nice.”

Collections don’t have to be aggressive. Clear invoices, proactive reminders, and well-structured automation will keep your cash flow healthy—without straining customer relationships.

Implement these best practices, and watch your bookkeeping, QuickBooks reports, and Fractional CFO’s job become a whole lot easier!