How to Keep Track of Invoices and Payments

To keep track of invoices and payments, organize invoices in a centralized place (such as invoicing software). Always assign unique invoice numbers so each one is easy to identify. When you receive a payment, immediately match it against the correct invoice to mark it as paid. For partial payments, record the amount received and leave the balance open until it’s fully settled. At the end of each week, reconcile your invoices and payments against your bank statements to make sure nothing is missed.

Use a Centralized Invoicing System

The first step in tracking invoices and payments is centralization. Instead of juggling spreadsheets, paper records, or multiple apps, use accounting software or an invoicing platform that brings all records together.

Benefits of centralization:

• Real-time visibility into paid and unpaid invoices.
• Reduced risk of duplicate entries.
• Easier reporting and analysis of cash flow.

Example: A roofing contractor using QuickBooks or DepositFix can see all invoices sent, pending, and paid in one dashboard.

Number Invoices Consistently

Consistent invoice numbering makes tracking easier and prevents confusion when matching payments.

Tips for effective numbering:

• Use sequential numbers (e.g., INV-1001, INV-1002).
• Add prefixes for different clients or projects (e.g., ROOF-2025-001).
• Avoid reusing numbers, even if an invoice is deleted or canceled.

Set Clear Payment Terms

When invoices include explicit due dates and terms, tracking becomes much easier. Clients know what to expect, and you can plan around cash inflows.

What to include in payment terms:

• Due date (e.g., Net 15, Net 30).
• Accepted payment methods (ACH, credit card, check).
• Late payment fees or interest charges.

Example clause: “Payment is due within 30 days of the invoice date. Late payments are subject to a 2% monthly fee.”

Match Payments to Invoices Promptly

Whenever you receive a payment, record it immediately and link it to the corresponding invoice. This prevents discrepancies later during reconciliation.

How to match payments:

• Use the invoice number as a reference in customer payments.
• Match bank deposits to specific invoices in your accounting software.
• Mark invoices as “Paid” as soon as the transaction clears.

Monitor Overdue Invoices

Unpaid invoices can slip through the cracks if not monitored. Use automated reminders or reports to stay on top of them.

Strategies for tracking overdue invoices:

• Run an Aging Report weekly to see which invoices are outstanding.
• Send reminder emails before and after the due date.
• Call clients directly if invoices remain unpaid after reminders.

Reconcile Regularly

Reconciling ensures that invoices and payments in your system match your bank statements. This step prevents missing payments and catches errors early.

Reconciliation checklist:

• Compare all cleared payments to recorded invoices.
• Investigate discrepancies (e.g., partial payments, overpayments).
• Adjust records with credit memos or write-offs if necessary.

Generate Reports for Insights

Reports give you an overview of how well you’re managing invoices and payments.

Key reports to use:

• Accounts Receivable Aging Report → shows overdue invoices.
• Cash Flow Statement → tracks payment inflows.
• Customer Payment History → helps identify slow-paying clients.

Example: Invoice Tracking Workflow

Bonus Tip: Keep Track of Invoices and Payments with DepositFix

If you want to automate payment collection and invoice tracking, DepositFix integrates with your CRM and accounting systems. You can send invoices, accept ACH or credit card payments, and even pass transaction fees to customers—all while automatically marking invoices as paid.