How to write an invoice letter?
Once you’ve sold your product or service it is time to send an invoice to your customer. But how do you write a good and effective invoice letter?
The majority of late payments happen because of administrative issues, such as incorrect or unclear invoicing. Good communication with your customer will help you get payments to you faster and maintain cash flow. A complete and clear invoice letter is the first step in this process. On this wiki page we will give you tips on how to write a professional invoice letter.
Get paid faster and maintain your cash flow with these tips
First things first, let’s start with the definition of an invoice letter. An invoice letter is sent together with an invoice to explain the payment details and ask the debtor to complete and pay the invoice within a specified payment term.
To have a chance of an early payment, it is important to make a clear and professional letter. But how do you do that? With these tips you reduce the chance that you will be left with overdue invoices and also unpaid invoices.
Create an invoice template
Open a blank (Word or Pages) document and create a template for your invoice letter that suits your company. Use your tone of voice, company name and company logo.
It is important to be professional and friendly in order to get your customers to pay immediately.
Insert your (company) information
Start entering your company name and full address in the top left corner. The standard address format is:
CITY or TOWN
Enter the date below this information.
Insert the information of the recipient
It is important to include the specific name to whom the invoice should be sent. As a business owner it radiates professionalism if you know who will be making the payment or who your invoice or invoice reminder should be addressed to.
Start the letter with an introduction
Start your letter with a salutation by using the same name as included in the address above. You can also add a personal title here, such as, Mr., Ms., Mrs,. Miss. or Dr.
Then, write a friendly opening line. An example could be:
Dear Mr. Kamstra,
I hope that you are doing well.
Get to the point
After the introduction, you write the body of your invoice letter. Get right to the point and be as clear and concise as possible. This allows the recipient to immediately see what is expected of him or her.
If you are not, you run the risk that the recipient does not have the time to read the invoice letter and will do so at another time. This will also postpone the payment.
So, if you want to increase the chances of a faster payment, be clear and concise! An example:
Please find attached [invoice number] for [name of the project]
The payment is due on September 10, 2020. There is a 5 percent discount if you submit payment in 14 days.
If you have any questions about the invoice, please contact [name] at [contact information].
It has been a pleasure working with you.
Write the closing
Write a friendly closing line and add a comma at the end of this line. Then add your signature and name. An example could be:
Thank you in advance,
Do not forget to mention the enclosures at the end of your letter. This is how you encourage the recipient to view and take actions on these enclosures. An example of how to do this is:
Enclosure: Invoice [number]
Communication is key
By consistently bringing invoices to the attention of your customer and keeping the communication going, the payment behaviour of your customer improves. However, to send payment reminders manually is a time consuming process.
This is solved with the software of Payt.
Payt will automatically start an invoice reminder process with you in full control. From the first invoice to the last reminder. This saves you up to 80 percent of your time and you keep control over what your invoice (letter) looks like and when a customer needs to be reminded.
What makes Payt unique is the communication platform in the software. Payt keeps the communication with your customer going which ensures better payment behaviour.
You can communicate per invoice with your customer and respond appropriately if he or she has a question or comment about this particular invoice.
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