Whether you’re running a family bakery or an online retail shop, you will encounter bills at some point. A bill shows that a certain amount of money is owed for a product or service already given. Many businesses still issue them the same way they did decades ago, in print with an official letterhead, a list of the items or services, and a total charge. Others now issue them digitally. Either way, the bill is meant to say, “Here’s the amount owed and here’s why.”

Below, we’ll explain how a bill differs from an invoice, how to create a professional bill, common challenges, and how to follow up on unpaid bills.

What’s in this article?

• How is a bill different from an invoice?
  
• What details should a bill include?
  
• How do you create a professional bill?
  
• What are the common challenges of making a bill?
  
• How does Stripe simplify billing?
  
• How do you follow up on unpaid bills?
  

How is a bill different from an invoice?

“Bill” and “invoice” are words that might tend to be conflated. While they share many traits, the context decides which term is used. Generally, bills are used in B2C transactions to request payment, while invoices are more common in B2B settings. Businesses usually send bills to arrive around the time payment is due. Meanwhile, an invoice can have longer payment terms, such as net 30 or net 60, which specify how many days the client has to pay. Invoices tend to be more detailed than bills since B2B transactions often have more accounting and legal requirements.

What details should a bill include?

An effective bill isn’t lengthy, but it’s thorough enough to prevent misunderstandings. Here are some details that are often included.

Business and contact information

• Your logo and business name
  
• Your phone number and email
  
• Business address (physical or online)
  

Date of issuance

• The date you issue the bill
  

Summary of products or services

• Short, simple descriptions of each item
  
• Quantity, if relevant (e.g., number of products)
  
• Cost per unit or hourly rate, if applicable
  

Amount owed

• Any applicable taxes or fees
  
• The total amount due
  

Payment instructions

• Accepted payment methods (e.g., credit card, bank transfer)
  
• The payment due date
  

Additional notes

• Any relevant disclaimers (e.g., late payment fees)
  
• Thank-you message or short expression of appreciation
  

Keeping these elements consistent helps make your bills look organized and credible. They also quickly inform your customers of what happened and how much is due without forcing them to hunt for basic information.

How do you create a professional bill?

A tidy document can reduce the chances of confusion and speed up payment. Here are some tips for how to create a polished bill that helps you get paid on time:

• Avoid stiff or vague language: Concise item labels and direct statements can help reduce back-and-forth later on.
  
• Be friendly: Getting a bill can be unpleasant, but a small courtesy—such as a “Thank you for your business” message—can go a long way toward keeping relationships positive.
  
• Use branding elements: If you have a recognizable logo or some other type of branding, place it at the top.
  
• Pick a clean, readable font: Don’t opt for anything too stylized that might be hard to scan at a glance.
  
• Organize information in neat sections: Create a header for your business details, then follow with a section for charges, and end with the total amount.
  
• Offer multiple payment methods: Many appreciate the option to pay online, especially if it’s as simple as clicking a link.
  

What are the common challenges of making a bill?

Those who draft bills every day know that it isn’t always straightforward. Below are a few common mistakes and practical tips on how to avoid them.

• Incorrect or missing information: A single misplaced decimal point can change a total by hundreds of dollars, and a spelling error can cause your bill to be sent to the wrong person. Double-check all details before sending.
  
• Confusing layout: When details are scattered, your customer might not know how to pay or why certain fees appear. Group related items together and emphasize the total near the bottom.
  
• Billing delays: Some businesses wait too long to bill. This delay can lead to awkward follow-ups and leave the customer confused about the payment’s timeline. Send the bill as soon as possible after delivering a product or finishing a project.
  
• Unclear payment deadlines: If you want payment by a certain date, clarify the deadline up front. Some businesses prefer to be flexible, but it’s good practice to give a due date.
  
• Overlooked unpaid bills: It’s easy to miss a single overdue payment when you’re juggling many customers. Using organized accounting tools or a payment platform can help you monitor at a glance who has paid and who hasn’t.
  

How does Stripe simplify billing?

Businesses of all sizes use Stripe to manage payments, handle subscriptions, and implement recurring bills. Even if you need to send only a few bills a month, Stripe can reduce some of the manual work and potential errors. Here’s how Stripe can help:

• Automated billing: Stripe can automatically generate bills and email them to customers on your behalf. This means you don’t have to spend time manually creating and sending them.
  
• Easy payment collection: You can collect payments via credit card, digital wallet, Automated Clearing House (ACH) transfer, and more. When customers view the electronic bill, they can settle immediately without a complicated checkout process.
  
• Recurring billing: Stripe supports usage-based and recurring charges for subscription businesses. Automating this function is much simpler than manually sending a new bill each month.
  
• Smart reminders: Stripe’s tools can schedule reminders for overdue accounts automatically. These give customers a helpful nudge to pay without requiring you to send a separate email each time.
  
• Bill tracking: Stripe shows you which bills have been sent and which ones have been settled. Real-time updates can help make it simpler to track progress and spot overdue payments.
  
• Security measures: Stripe focuses heavily on online security. Its system handles sensitive customer data, so you don’t have to store it on your own servers.
  
• Customization options: You can add your own branding elements (e.g., logo, color scheme) and customize the messaging so it matches your business tone. This ensures each bill feels consistent with your business’s identity.
  

How do you follow up on unpaid bills?

Even with a solid billing strategy, some payments will be late or overlooked. Perhaps your customer is out of the office, or the email containing your bill ended up in a spam folder. Sending a follow-up note—a short, friendly message that references the bill date, amount, and how to pay—is often enough. This can be simply an email that says, “We noticed this bill is still open. Please let us know if you have any questions.” This example keeps the messaging polite, and it prompts the customer to act if they forgot.

Here’s how to structure your reminders for maximum effect:

• Initial reminder: Send a short email or message a few days before the due date or soon after it passes.
  
• Second reminder: If you don’t receive a response after a set period (often a week or two), send another email or letter with a clear subject line. Reference the due date and offer to make a quick call if they have been having issues with payment.
  
• Phone call: If your reminders go unanswered, a phone call can be faster.
  

You can also improve revenue capture and reduce involuntary churn with Stripe’s Smart Retries and recovery workflow automations. Stripe recovery tools helped users recover over $6.5 billion in revenue in 2024.