Equipment rental receipts and invoices are two key documents for your customers. Receipts are usually provided when your customer pays for their rental, while invoices are used when you agree to bill them for a rental, allowing them to pay later.
Both include key information, however, such as details of the equipment rented, the length of the rental, itemized rental rates, and the total cost.
What to Include in Your Rental Invoices & Receipts
As mentioned, each rental invoice or receipt you create should contain essential information, including your company name and contact information, as well as the customer name and contact information. In addition, you’ll want to include a thorough analysis of the rented supplies, detailing the make and model of the equipment and a breakdown of the amount due.
If multiple pieces of equipment are rented, or if there are other items purchased, such as consumables like water or cleaning fluid, each will have its own line in the invoice or receipt.
For an equipment rental receipt, you’ll include the amount paid and the payment method used (credit card or check). For invoices, you’ll include a due date for the amount owed and how the customer can pay. You can provide a link for credit card checkout or a mailing address if they choose to remit a paper check.
You’ll also want to provide any other relevant information for the order, such as the purchase order number. Make sure to print the due date on the invoice as well to clear up any confusion and prevent issues. For example, an invoice created on Jan. 1, 2023, with “due in 30 days” terms means you’d arrange a due date of Jan. 31, 2023.
Should You Offer Invoicing for Your Rentals?
Generally speaking, equipment rental invoices or receipts are provided to a customer renting your equipment.
Equipment rental receipts are typically provided once a customer pays for the rental service. You can provide an equipment rental invoice at the time of rental, but they are commonly provided (either mailed or emailed) after the rental is completed. However, invoices may be sent intermittently (such as weekly) for long-term rentals.
Say you have an excavator that’s been rented out for six months, and your customer is a state agency that has asked to be billed instead of having to pay upfront. You agree to invoice them weekly, and so every Monday, you’ll send them an invoice for the previous week’s rental period costs.
Send Out Invoices in a Timely Manner
Invoicing is a great way to get a leg up on the competition, extending credit to your customers. Though your cash inflows might be delayed, offering invoicing options signifies that you’ll open your business to more potential customers.
If your equipment rental company does decide to offer invoicing services, you’ll want to ensure you get them out promptly. Set a precise schedule for invoicing, such as the same day each week, as delays in getting invoices out correlate with payment delays.
On the other end, make sure the payment process is as easy as possible. Include information about how your customers can pay their invoices, such as a direct link to making credit card payments if you’re emailing invoices.
Getting invoices out on time is integral to managing the accounts-receivable process. Invoices are often reconciled with purchase orders and need authorization from various department heads, which can take time — another reason to get invoices out as soon as possible.
Additional reasons to be timely with invoicing include keeping your invoice amount smaller — which is more likely to be paid quickly. Multiple approvals might be needed for larger invoices, which can delay payment.
As well, some larger customers may batch their payments, meaning you might miss a payment cycle if the invoice comes in later than expected.
Consider Using an Automated Invoicing System
A good rule of thumb is to invoice your customer as soon as possible. In order to remain transparent and clear about your expectations, keep the time between when the rental was completed and when the invoice is sent to a minimum.
Providing rental receipts or invoices for each transaction or customer can be cumbersome — not to mention time-consuming. Thankfully, there’s software that can streamline the process and generate customer invoices and statements automatically. This software can speed up the billing process and remove the need for physical paperwork.
Utilizing invoicing software also means you’ll get your invoice in the hands of your customers sooner, and the quicker you get your invoices out, the faster you’ll get paid. Payment delays mean less cash inflow for you, leading to missed opportunities or additional interest spent on financed equipment.
Free Equipment Rental Invoice Template
See below for a free equipment rental invoice template that you can use for any type of rental, such as farming, construction, or cleaning equipment.
A suitable equipment rental invoice like the one below will contain details about the customer’s rental and an itemized breakdown of the costs. It’ll benefit both parties even further if it’s delivered automatically.
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If you’re interested in finding out what Quipli can do for your rental business, book a 15-minute demo with our team today.