Best Practices for Invoices

Simple guidelines to keep billing clear for customers and clean for your books.

1) When to Use an Invoice (vs. a Simple Payment)

Use an invoice when:

• Payment will be made later (not right now).
• You need a formal document for reimbursement/records.
• You want to track outstanding balances and send reminders.
• Payment ties to a room/resource reservation or agreement.

You can usually skip invoices and just record a payment when:

• The person is paying immediately and doesn’t need an invoice.
• It’s a one-time, low-risk donation/purchase with no follow-up needed.

2) Naming Customers / Clients

Tip: Be consistent—use the same customer name each time for clean reports.

3) Choosing Due Dates & Terms

• 30 Days works well for most cases.
• Use Immediately for deposits or pay-before-confirm scenarios.
• Reserve 60–90 Days for trusted partners (e.g., school districts) with slow approvals.

Keep to one or two common terms so expectations are clear.

4) Accounting: AR vs. Immediate Income

The “Save Entry in Accounts Receivable” in Invoice Settings controls whether unpaid invoices show up as money owed. Those entries will be saved automatically to your Accounts Receivable account.

Use Accounts Receivable (AR) when:

• You wish to maintain accurate balances and records in your primary registers which match bank statements.
• You use accrual basis accounting (recommended)
• You expect payment after the invoice date.
• You want a clear list of who still owes money.
• You’re billing organizations (schools, clubs, churches).

In this case:

Keep the Save Entry in Accounts Receivable setting checked and use your AR register (e.g., 1100 – Accounts Receivable).

Skip AR (record as immediate income) when:

• You’re generating an invoice after payment was already made (for records only).
• You’re catching up on fully settled past items.

In this case you can:

Uncheck Save Entry in Accounts Receivable in Invoice Settings and record the income directly to your bank register and income account.
If unsure: leave AR on and ask your bookkeeper.

5) Using Online Payments Wisely

• Enable Allow Online Payment in Invoice Settings for one-click, secure pay links.
• Add a short note for new payers: “You can pay securely online using the link in this invoice.”
• Encourage recurring renters to pay online to reduce cheque chasing.
• Double-check the email on the customer so the link reaches the right person.

6) Combining Invoices with Rooms & Resources

1. Create the reservation with the correct rate type (hourly/flat).
2. Use the Default Accounts in Invoice Settings to match how you want rental income recorded (e.g., Facility Rental Income and General Fund).
3. Generate the invoice from the reservation (when applicable) so room/date/purpose are clearly described in the line items and staff can easily see which invoice belongs to which booking.

Best practices:

• Include event date + room name in line items (e.g., “Gym Rental – April 12 Youth Rally”).
• If there are multiple bookings for one group, consider one monthly invoice summarizing all uses.

7) Notifications & Internal Communication

In Invoice Settings, select who should receive a notification:

We recommend:

• At least one finance person (treasurer/bookkeeper) for Invoices created, paid, and modified/voided.
• An office admin if they coordinate with customers.

This ensures:

• Finance staff can match payments to deposits; admins know when to release rooms, finalize bookings, and follow up.

8) Quick Checklist Before “Generate Invoice”

• ✅ Customer & contact are correct
• ✅ Due date/terms make sense (Immediately / 14 / 30 days, etc.)
• ✅ Fund & Register match where the money should go
• ✅ Line item text clearly states what they’re paying for
• ✅ Amounts, quantities, totals reviewed
• ✅ Attachments included (agreements, quotes) if needed
• ✅ “Generate and Send” is checked/unchecked on purpose