Overview

Invoicing is the process of informing your customers how much they owe you and how they can pay you.

Customer Payments is the method of accepting that payment into your business checking account: cash, check, direct deposit, ACH, credit card, venmo, zelle, to name a few.

Customer Payment platforms involving merchant service accounts that allow you to accept credit cards and ACH payments are not needed if you can get customers to pay you via cash, check, or direct deposit (giving them your bank routing and checking account numbers).

Your Invoicing and Customer Payment platforms can be:

  1. As low-fi as you emailing out monthly PDFs to your customers with instructions that you like to receive payment via direct deposit to your business checking account number and bank routing number. This is often the best approach for many Collective members.

  2. Or it can be as hi-fi as a third-party platform that specializes in estimates, contracts, or time tracking (veem.com, honeybook.com, harvest.com, melio, etc.)

  3. You can also use QBO's or Xero's built-in invoicing and customer payment platforms.

  4. Customer payment platforms are not needed if you can get customers to pay you cash, check, or direct deposit.

No matter what platforms you use, its important to remember a few key elements:

  1. Collective does not provide invoicing services. Invoicing is self-managed by the member.

  2. Your accounting software is a great database for income and expense transactions used to generate profit and loss and balance sheet reports. Reports used by you to view the performance of your company over time, and used by the accounting and tax teams to provide guidance and file annual 1120s business tax returns.

  3. If you need a great database for invoices, invoice line item detail, customer information, etc. then its best to use a third party invoicing platform

  4. Do not integrate your third-party invoicing platform with your accounting software. Resist any prompts urging you to integrate them. The only "integration" you need is the money from the invoices being deposited into the business checking account that is connected to your accounting software.


Xero

If Collective is using Xero as your accounting software please follow these directions.

Step 1: Because invoicing is turned off in Xero by default, you will need to send an email to [email protected] requesting for the invoicing functionality to be turned on.

Invoicing Platform

Customer Payments Platform

We HIGHLY recommend using Xero's Stripe integration for receiving payments from customers.


QuickBooks Online

If Collective is using QuickBooks Online as your accounting software please follow these directions.

Invoicing Platform

Customer Payments Platform

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