How you present an invoice is very important. Most AP departments prefer to pay from an original invoice because payments made against copies of invoices represent a significant portion of duplicate and fraudulent payments. Some AP departments often have policies requiring payment from an original invoice and others have strict processes to follow when paying from a copy that requires additional research and delays payment.

Smudged numbers can cause payment delays and errors. An invoice's information is only as good as the equipment that produces it.

If your company sends paper invoices, present your invoices on white paper using black ink. Do not use colored paper, even if you are tempted to make your invoice distinctive. It does not help get your invoice processed more quickly, and in fact, slows payment if invoices are scanned electronically and the equipment cannot read invoices printed on colored paper. In addition, white paper is less usually expensive and will save you money.

Invoices should be clearly marked "INVOICE."

If incorrect or untimely invoices are sent, it has a negative impact on a company's cash flow. Incorrect invoicing is the biggest reason customers do not pay on a timely basis, so distributing correct invoices helps improve your company's cash flow.

To obtain cash, companies must send invoices quickly and accurately. Invoice as soon as the work is complete. Ensure all documentation is collected and organized before an invoice is issued. The invoice process should begin as soon as the work order is fulfilled.

A contract or sales agreement may specify payment terms, such as when the invoice will be sent and when it is expected to be paid. Otherwise, a sale is considered to occur when a product's title of ownership is transferred to the customer or delivery of services to the customer is completed. If a company's financial records are maintained in accordance with Generally Accepted Accounting Principles (GAAP), sales are recorded once a service or product is delivered. So, invoicing should occur at - or as soon as possible after - this point.

A transaction is considered earned and revenue may be recognized when the following four conditions are met:

• There is persuasive evidence that an arrangement exists, such as a contract, sales agreement or purchase order.
• The fee charged is fixed or determinable.
• The delivery or performance has occurred.
• Collectability is reasonably assured.