How to set up automated invoice reminders

 

How to set up automated invoice reminders

Essential Payment Details and Payment Options

An excellent past-due notice will provide all the necessary information for a customer to pay immediately. Include the available payment options, highlighting your preferred way of receiving payment. Outline any fees associated with the different methods for transparency, as no one likes surprises. Including the invoice number gives your client a quick reference that can help expedite the payment process.

List of services provided

A quick rundown of your business's services can also jog customers' memories and facilitate quick invoice turnaround. This is especially important when your client engages with different contractors or is organising a large, complex project. It can be challenging to keep track of which team completed what and when.

This is also necessary if someone manages your customer’s finances or represents their interests. Providing the job details means everyone is on the same page and understands what the overdue invoice relates to.

Attaching a copy of the invoice itself is a simple way to refresh a customer’s memory and provide transparency. Need templates for business invoices? Try our free templates.

Due Date

The due date is an essential facet of payment reminders, as it provides a clear deadline for your client and a reference point for late payments.

If a due date has passed, include the length of time the invoice is overdue, for example: ‘one day overdue’ or ‘two weeks overdue.’

Late Fees

Overdue invoices interrupt your business's cash flow, which can have a domino effect on your budget. Late fees for overdue payments are an option to show clients that your business takes contracts and due dates very seriously, but there is room for leniency.

Your quotes, contracts and invoices should outline late fee stipulations. Transparency is key to ensuring clear communication between your business and customers.

Tools to Send, Manage, and Automate Payment Reminders

Automating payment reminders is an excellent option for any business, especially for those who interact with complex projects and clients. Industry software and accounting software offer their own features, so we’ll cover some of the options here.

Different services have strengths and weaknesses, so finding the best fit depends on your business's needs.

Simpro

Simpro’s field service management software offers various features to help optimise cash flow, such as automated invoicing, payments and payment reminders. With Simpro’s customer portal, you can provide convenient payment options for your customers and schedule automatic email and SMS reminders to prevent overdue invoices. Simpro also allows you to customise messages and apply rules to suit your needs.

Customers can also access payment options online, over the phone and even in the Simpro mobile app, meaning your business gets paid, faster. Simpro also integrates with existing accounting software you may be using, such as QuickBooks, Sage, Xero and others.

AroFlo

AroFlo is another example of software that offers robust features to help you manage payments and maintain a healthy cash flow. Its event messages functionality allows you to set up automated notifications for various events, including invoice payments.

QuickBooks

QuickBooks accounting software offers both manual and automatic payment reminders. For automatic reminders, select a preference for each customer or company and set the time and frequency. Manual reminders can be selected at any time and are accessible from QuickBooks’ desktop version.

Xero

Xero provides automated invoice reminders designed to streamline payment follow-ups. Businesses can schedule up to five email reminders for each invoice, which can be sent either before or after the due date. These reminders are customisable, allowing users to include options like attaching a PDF copy of the invoice or setting a minimum invoice amount to trigger reminders.

How to set up automated invoice reminders