About the course
This course covers the entire invoicing process: from issuing invoices through to follow-up, payment reminders and, where necessary, debt collection.
Prerequisites and target audience
The course is designed for small and medium-sized businesses looking to strengthen their invoicing and cash flow routines. Participants should be familiar with basic accounting concepts and have an understanding of invoice requirements to get the most out of it. Accountants, finance managers and business owners will gain practical tools that can be implemented straight away.
What you will learn
- Invoice setup and legal requirements
- Payment terms, due dates and part payments
- Payment reminders, late payment fees and interest
- Direct Debit, e-invoicing and payment references
- Routines for follow-up and write-offs
The course connects theory with practical examples, so you understand how to document claims in your accounts and how to follow the rules under the Late Payment of Commercial Debts Act when recovering outstanding amounts.
Module structure
- Invoice basis and sending: Templates, line items and control routines before sending.
- Follow-up after the due date: Notifications, payment arrangements and documentation in your accounting system.
- Debt collection and write-offs: Working with debt collection agencies, statutory interest and accounting for bad debt.
- Automation: Using invoicing software, an invoice reader and bank integration.
Tools and templates
- Standard invoice template compliant with UK bookkeeping rules
- Payment reminder letters and debt collection notices with correct statutory rates
- Reports for monitoring overdue trade receivables
- Checklists for reconciling against bank statements and the sales ledger
Practical reminder sequence
| Step | Days | Action |
|---|---|---|
| 1 | 0 | Invoice issued with 30-day payment terms |
| 2 | 30 | First payment reminder with late payment fee |
| 3 | 44 | Formal debt collection notice |
| 4 | 58 | Referral to debt collection agency |
Rates and calculations
| Element | Rate | Notes |
|---|---|---|
| Late payment fee | £70 (invoices over £1,000) | Fixed statutory compensation under the Late Payment of Commercial Debts Act |
| Statutory interest | Bank of England base rate + 8 percentage points | Applied from the day after the payment due date |
| Debt collection costs | Stepped scale based on principal debt | Follow the debt collection fee schedule |
The table shows standard rates. The course provides guidance on how to document calculations in your accounts and communicate clearly with customers to avoid disputes.
Automation and system support
We show how cloud-based systems handle sending, payment reminders and payment matching. In Nexbal, quotes, invoices, credit notes and reminders go out as PDF by email, in sterling or foreign currencies, and payments are matched from uploaded bank statements. You will also learn how open APIs, Direct Debit and payment references help maintain a steady cash flow.
Next steps
- Bookkeeping and VAT: see Accounting Course
- Payroll and reporting: see Payroll Course
- Year-end and filing: see Year-End Course