Tardy invoicing puts businesses at risk from late payment finds the Better Payment Practice Group
The poll, which was held on this website asked businesses how soon they issue the invoice after receiving confirmation from the customer of receipt of goods or services. Of the 341 respondents, 11% stated that they usually invoiced two weeks or more after confirmation of receipt. A further 19% waited until the end of the month before issuing the invoice. The survey also split respondents by number of staff and found that small businesses (with 10-49 employees) were quickest to invoice, with 52% doing so within 24 hours, while medium (50-249 employees) and large (over 250 employees) firms were slowest, with 15% not invoicing for two weeks.

James Meyrick, member of the Better Payment Practice Group and Small Business Policy Adviser for the Association of Chartered Certified Accountants (ACCA), commented: “The invoice is the first part of the collection process and it is essential that it is sent out as soon as possible after confirmation of receipt of goods or services – preferably within 24 hours. By not invoicing promptly, businesses are leaving themselves open to abuse from late payment.

“Set invoices out logically and clearly, including the invoice date, description of the goods or services provided, account number, order number, amount due, date by which payment must be made, preferred payment method and the address to which payment should be sent (or account details for BACS). Always send the invoice to a named individual and it is also useful to alert the debtor of your statutory right to charge interest on late payment. The sooner the customer is aware of the amount owed and the due date, the sooner they can set the payment process in motion.”

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