Further Details on Statement of Account
The sub-total is the sum of all the invoice amounts due minus credits.
Then the interest can be added on – calculated on overdue payments from the previous month.
This ends up with the final total due by the customer. Make the final total stand out in a bold or larger font.
- Comments - The comments section can be used for a personalized message by the seller to the customer such as 'thank you for your business!'.
- Due date - enter the date you expect the total due to be paid by.
- Payment type – It is important to let the customer know when payment is expected. Give them options of type of payment you accept, like direct banking (be sure to include your full bank account number), check/cheque, credit card.
- Interest percentage – also often called 'finance charge'. Remind the customer how much interest will be charged on overdue payments. Go to accounts receivable collections to learn how to calculate interest charges.
Entering your business name and address on the remittance
makes it convenient for the customer – it means they don't have to
do it and they can simply pop it into a window envelope to be posted
in your customer's name on the right so that when you receive the remittance you know which customer it's from when you open the envelope.
Note: many customers will pay by direct banking but will post the remittance so you know exactly what they are paying, but some customers will not use it which can be a nuisance if they only pay a portion of each invoice leaving you not knowing which invoices to allocate their payment against – ring them in this instance.
Customer Cut Off Dates
business customers have a cut off date (such as 5th of
the month) beyond which any invoices you send will not be included
in their current pay run but held over for the next month's one.
be sure to process all your invoices as soon as the month has ended
and issue your statement of account right away.
Once a statement of account has been sent to the customer, do not then go back and amend an invoice unless it has been discussed with the customer so they are aware of any issues.
If you have to amend an invoice, send the customer both the amended invoice and an amended statement of account showing the new balance.