When a transactional record is processed for the sale of your products or services you would want to include payment terms. An outline stating the procedure of payment that the buyer must follow. It’s crucial that payment of terms is included when sending out an invoice and clearly written because this influences how fast your client will pay up.
What to include on your list of payment of terms
Stating the due date of payment ensures clients pay what is owed at the right time. If a payment due date is not suitable you can opt to put in a net date instead. This shows clients how much time they have to pay from the time the invoice was received.
Net 30 means a customer must pay the total invoice amount by the date 30 days from when the invoice is sent. 30 days are not mandatory, you can choose a net of 60 or 20. It would be advisable to apply a shorter net date because it guarantees faster payment. In addition to the net date, you can give clients a grace period. This is additional time to make a payment without any interest. This period depends on your inclination and what you think is best for your company
Recurring payment invoices are for ongoing services and are typically the same each month. An example of this might be a membership or subscription-based service, as their services are provided every month and are the same amount each month. Recurring invoices help to guarantee your business is generating and keeping track of cash flow each month.
For businesses with clientele outside the country adding various currency options to your payment of terms would be a good step to reflect exchange rates so your customers can choose their preferences. You can still add currency for Domestic transactions. However, since the currency used by the buyer and seller is the same, the invoice currency is assumed to be the Kwacha in Zambia.