Sales Invoices and Collecting What’s Owed
With their new venture under way, the first thing Mary did was to
give Tom a notebook so that he could record how much time he laboured
for each customer.
There were materials Tom had to buy to complete
his jobs such as nails and timber and paint.
Whenever Tom bought these items he wrote the name of the customer on the receipt/invoice so Mary knew which customer to on-charge the costs to.
As soon as Tom told Mary a job was complete Mary produced a sales invoice
ensuring to include the markup prices on items Tom had purchased.
She printed the sales invoices, checked them carefully, and
posted or emailed them out, placing copies into her organised filing system.
Sometimes, a customer would phone in and order parts only.
Mary would arrange for the parts to be delivered to the customer with a delivery docket.
A few days later, she would prepare the sales invoice and email it to the customer, and at the end of the month she would send a statement of account to them.
Mary kept a sharp eye on customer payments because she wanted to be sure to maintain efficient accounts receivable procedures...
...unfortunately, not every customer paid on time but Mary had a print out of accounts receivable collection tips which gave her some good pointers on how to go about the not so pleasant task of chasing down the money.
They were well on their way to getting a good grip on bookkeeping basics.