Reporting and Operations

Sending Invoices


Amy Kriz, CPA

American Petroleum Institute (API)
Size of Organization: 

Invoices may need to be prepared for a number of reasons. Some organizations sell books or newsletters for a fee. Others require registration for meetings or bill for dues. In any event, all invoices should be reviewed by a person other than the preparer before mailing.

The invoice should include the following information:

• The nonprofit organization’s name, address and contact information, including a phone number and email address.
• The recipient’s name and contact information.
• Invoice number – this is a unique identifier used to track the invoice.
• Invoice date and if applicable, payment due date.
• Indicate what the invoice fee regards, such as a service fee, purchase of goods, registration fee, etc.
• Invoice amount.

If the organization is on an accrual basis, invoices should be recorded in the general ledger when they are prepared. At this point in time, the debit is to accounts receivable (an outside party owes the organization money) and the credit is to revenue.

When the cash is received, the receivable is reduced, and cash is increased on the books.

Copies should be kept of all invoices.

An aging list should be kept. In this manner, the amount of time it takes for an invoice to be paid can be tracked. Further, collection efforts can be started in a timely fashion.
If it is later determined that an amount will not be collected, the invoice and corresponding revenue should be written off. All amounts written off should be approved in writing by management