Best Practices for Invoice Formatting and Delivery

Best Practices for Invoice Formatting and Delivery
A clear, accurate, and professional invoice not only speeds up payment but also reinforces your agency’s credibility. This guide outlines best practices for formatting and delivering invoices in Momentum AMS to maximize clarity, compliance, and payment turnaround times.

1️⃣ Standardize Invoice Layout

Consistent Branding – Ensure your agency’s logo, colors, and contact information are included on all invoices.
Clear Header Information – Always include invoice number, date issued, due date, and policy number(s).
Logical Line Item Structure –
- If Combine All Receivables and Payables is checked, taxes and fees are merged into a single total amount due.
- If unchecked, taxes and fees are shown as separate, itemized receivables and payables, allowing for detailed line item display on the invoice.
- Both options are acceptable; it’s a matter of agency preference. Most agencies show the breakdown on quotes but use the total on invoices to avoid confusing the insured.
Totals & Balance Due – Clearly display total amount due and any remaining balance after payments or credits.
Payment Instructions – Specify mailing address, online payment links, and accepted payment methods.

2️⃣ Include Required Legal and Compliance Details

Add any state-required disclosures for taxes, surcharges, or financing arrangements.
Include your license number if required in your jurisdiction.
If late fees apply, display the terms (e.g., “Late fee of 1.5% per month applied to balances over 30 days past due”).
For premium finance invoices, note that the remaining balance is financed and include the finance company’s contact details.

3️⃣ Leverage AMS Data for Accuracy

Generate from a Transaction – Always generate invoices from a properly created transaction to ensure receivables and payables align.
Link to the Policy – Verify the correct policy is associated to pull accurate coverage, premium, and billing type details.
Auto-Fill Features – Use prefilled data for carrier/MGA, fees, and taxes to reduce manual errors.

4️⃣ Optimize for Customer Clarity

Plain Language Descriptions – Replace abbreviations or internal codes with customer-friendly terms.
Break Down Taxes and Fees – Show each fee/tax individually so the insured understands what they’re paying for (if not using combined totals).
Highlight Due Date & Balance – Make these fields visually stand out.
Optional Notes Section – Add brief explanations for unusual charges or adjustments.

5️⃣ Deliver Invoices Effectively

Preferred Method First – Send invoices using the insured’s preferred communication method (email, portal, or physical mail).
Email Attachments – Always send as a PDF to preserve formatting.
Client Portal Access – Upload to the insured’s Momentum AMS client portal for secure access and recordkeeping.
Integrated Payment Link – If using a payment partner (ePayPolicy, Simply Easier Payments, Tranzpay, etc.), embed the link in the invoice email.
Confirmation of Delivery – Document invoice delivery in AMS notes and apply a tag (e.g., Billing – Invoice Sent).

6️⃣ Follow Up Promptly

Send a friendly reminder 5–7 days before the due date.
Follow up 1–3 days after the due date for unpaid balances.
For overdue invoices, include late fee reminders and offer payment arrangements when applicable.

Best Practice Tip

Create a default invoice template in Momentum AMS with your agency branding, fee structure, and standard payment instructions. This ensures every invoice is consistent and professional without having to manually reformat each time.