“Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.” — Romans 13:8
Lesson
What You Will Learn
- Create a clear, professional invoice
- Track accounts receivable and follow up on late payments graciously
- Track bills and accounts payable and pay on time
- Record invoices and bills correctly on a cash basis
Lesson Notes
The Invoice
An invoice is a bill you send a customer. It should include: your business name and contact information, the word Invoice, an invoice number, the date, the customer's name, a description of each item with quantity and price, the total, the due date, and how to pay.
Example: Joy's Invoice #1003 to New Hope Community Center (a fictional customer): 4 dozen cupcakes × $24.00 = $96.00; 1 sheet cake × $65.00 = $65.00; Total due $161.00, payment due in 15 days. If sales tax applies to what you sell, it appears as its own line. Rules vary by state and city, so check before you start.
Accounts Receivable
Accounts receivable (A/R) is money customers owe you. Keep an A/R log with invoice number, customer, date, amount, due date, and date paid. An aging list groups unpaid invoices by how long they have been outstanding.
Joy's A/R on March 31:
- #1001 Lee · $75.00 · 45 days outstanding
- #1002 Brown · $40.00 · 20 days outstanding
- #1003 New Hope Community Center · $161.00 · 10 days outstanding
Current (0–30 days): $40.00 + $161.00 = $201.00. 31–60 days: $75.00. Total A/R: $276.00. Follow up kindly but promptly on anything past due.
Bills and Accounts Payable
Accounts payable (A/P) is money the business owes suppliers. Keep a bills list with vendor, amount, due date, and date paid. Pay on time to protect your reputation and avoid late fees. Never pay a business bill from personal money without recording it as an owner contribution.
Recording on a Cash Basis
On a cash basis, sending an invoice does not go in the cash book yet. Record it in the A/R log. When the customer pays, record the payment as sales in the cash book and mark the invoice paid. Bills work the same way: list them when received, record them in the cash book when paid.
Key Terms
| Item | Details |
|---|---|
| Invoice | A bill sent to a customer for goods or services |
| Accounts receivable (A/R) | Money customers owe the business |
| Accounts payable (A/P) | Money the business owes suppliers |
| Net 15 | Payment is due 15 days after the invoice date |
In-Class Activities
Build an Invoice
Create Invoice #1004 for a fictional customer: 3 dozen cookies at $15.00 per dozen, 2 pies at $18.50 each, and a $10.00 delivery fee. The customer already paid a $25.00 deposit. Show each line total, the invoice total, the deposit, and the balance due.
Gracious Follow-Up
Invoice #1001 is 45 days old. Write a short, kind, professional reminder to the customer that states the amount, the original due date, and how to pay. Then role-play a phone call with a partner.
Assignment: Receivables and Payables Log
Set up an A/R log and a bills (A/P) list for a sample business.
- Write two complete invoices with at least two line items each, and total them correctly.
- Enter four invoices in the A/R log, mark one as paid, and calculate total A/R still owed.
- Enter three bills with due dates in the A/P list and write the order you will pay them in.
- Explain in two sentences how you would record a customer payment on a cash basis.
Graded with the Module Assignment Rubric.
Reflection Journal
Romans 13:8 says to owe no man any thing but love. How do you want customers and suppliers to experience you when money is owed in either direction? How can you be both firm and gracious?
Prayer focus: Ask God to make you faithful in paying what you owe and gracious in collecting what is owed to you.
Weekly Reading & Devotions
Owe No Man Any Thing
Romans 13:8 says, Owe no man any thing, but to love one another. In business, money flows in both directions. Customers owe you for your work, and you owe suppliers for what you buy. Love shapes how you handle both.
An invoice is a clear, respectful way to ask for what you have earned. It lists what you provided, what it costs, when it is due, and how to pay. Clarity prevents misunderstandings and protects relationships.
Many new owners struggle to follow up on unpaid invoices. They worry about seeming pushy. But Scripture says the labourer is worthy of his hire. Asking for payment is fair. A kind, prompt reminder with the facts is both firm and gracious.
On the other side, pay your own bills on time. When Joy's supplier gave her 30 days to pay for boxes, she wrote the due date on her calendar and paid early. (Joy is a composite example.) Her reliability earned her better terms later. Faithfulness with what you owe builds a good name.
Think About It
- Is it harder for you to ask for money or to pay it? Why? ______________________
- How can you follow up on a late payment with grace? ______________________
- What system will you use to remember when bills are due? ______________________
Daily Devotions for Week 4
The Debt of Love
Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.— Romans 13:8 (KJV)
Love is the one debt we always carry. It shapes how we pay and how we collect.
Reflect: How can love shape your business dealings?
Pray: Lord, let love guide every transaction.
Do: List any bill you owe and its due date.
The Righteous Repay
The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth.— Psalm 37:21 (KJV)
Repaying what we owe is a mark of righteousness.
Reflect: Is there anything you need to make right?
Pray: Lord, make me faithful to repay.
Do: Make a plan to pay one obligation on time.
Do Not Withhold
Withhold not good from them to whom it is due, when it is in the power of thine hand to do it.— Proverbs 3:27 (KJV)
When we owe someone and can pay, we should not delay.
Reflect: Who is waiting on you for something?
Pray: Lord, help me not to withhold what is due.
Do: Practice writing a bills list with due dates.
Worthy of Hire
for the labourer is worthy of his hire.— Luke 10:7 (KJV)
Your work has value. It is right to be paid for it.
Reflect: Do you believe your work has value?
Pray: Lord, help me see my work as You see it.
Do: Write a practice invoice with clear prices.
Yea and Nay
But let your communication be, Yea, yea; Nay, nay: for whatsoever is more than these cometh of evil.— Matthew 5:37 (KJV)
Clear terms prevent confusion. Say what you mean on every invoice.
Reflect: Where do you need clearer agreements?
Pray: Lord, make my words simple and true.
Do: Write a one-sentence payment policy for your business.
Module Quiz
- 1.
Money customers owe the business is called:
- 2.
An invoice lists 2 items at $12.50 and 1 item at $30.00. The total is:
- 3.
On a cash basis, an invoice is recorded as sales in the cash book when:
- 4.
Paying bills on time protects a business's reputation.
- 5.
List five items that belong on an invoice.