Whether you are a healthcare provider billing a patient for treatment, a plumber sending invoices after home repairs or a restaurant receiving bills for food and beverages, invoices and payments are part of your business.
Why is invoice tracking important and how do you effectively track payments? You will find the answers to these questions below along with best practices for invoice management.
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What Is Invoice Tracking?
Invoice tracking is the monitoring and management of incoming and outgoing invoices so that your business can have a healthy cash flow and good relationships with clients and suppliers.
The Importance Of Invoice Tracking
Invoice tracking is not just about data entry — it helps you manage your company financially, achieving smooth operation.
Ensures Consistent Cash Flow
A clear record of invoices shows when payments are due. This allows you to plan the time when you have funds available, avoiding cash flow interruptions.
Reduces Late Payments
Tracking invoices allows you to chase up on overdue payments, reduce the risk of unpaid bills and keep good relationships with business partners.
Simplifies Tax Preparation
An organized record of invoices and payments saves time and reduces the risk of errors when you need to claim deductions, report income and respond to tax audits.
Supports Growth
A good invoice tracking system gives you a clear view of outstanding payments, helping you expand, take on new clients and invest in new opportunities.

Efficient invoice tracking reduces late payments and maintains consistent cash flow
How To Track Invoices & Payments
To track invoices and payments, you need a process that covers both what you owe and what you’re expecting to receive.
Follow each step to ensure accuracy, timely action and control over your transactions.
1. Gather All Invoice Details
Collect all incoming and outgoing invoices. Check if they have the key invoice details — invoice number, issue date, due date, payment terms and total amount.
2. Log Invoices In A Central System
Use accounting software, spreadsheets or a financial database.
For clarity, label invoices as “accounts payable” (incoming) and “accounts receivable” (outgoing).
3. Set Up Payment Schedules
For incoming invoices, create a payment calendar and schedule bills by due dates.
For outgoing invoices, align follow-ups with due dates so clients make payments on time.
4. Monitor Payments
Track payment statuses by marking invoices as “paid,” “pending,” or “overdue.” Update statuses as payments are made or received.
5. Reconcile Records
Check payments against bank statements or payment confirmations to ensure all transactions are accounted for.
6. Handle Discrepancies Promptly
If you notice payment discrepancies, such as partial payments, incorrect amounts or missed deadlines, reach out to suppliers or clients to resolve.
Want to learn more about invoices and payments? Read our articles about invoice processing and invoice management for retail businesses.
Best Practices For Tracking Invoices & Payments
Do you have an efficient invoicing and payment tracking system? Check out the best practices below and see which ones you can use in your business.
- Centralize your invoices: Collect incoming and outgoing invoices in one place so you can manage payments easily and don’t miss important information.
- Customize your invoices: Use a template for all invoices to reduce errors and help clients understand the charges, payment terms and due dates.
- Send invoices fast: Don’t wait to send your invoices out. The sooner an invoice gets to the client, the sooner they can pay.
- Log incoming invoices: Log all supplier bills as soon as possible and schedule payment to avoid late fees.
- Automate payment reminders: Use invoicing software and set reminders. For outgoing invoices, configure reminders to notify clients when payment is due, or if they haven’t paid. For incoming invoices, set up alerts so you don’t miss due dates and are charged late fees.
- Track payments in real time: Have a system where you can view outstanding balances at a glance.
- Use clear payment terms: Inform partners of your payment terms — due dates, penalties for late payments and discounts for early payments.
- Backup invoice data: Store digital invoices so your business is protected from data loss and is compliant with regulations.
- Use reporting: Generate reports about recurring late payments or cash flow gaps. Analyze trends and plan steps to improve your financial stability.

To track invoices and payments, use a centralized invoice system and automate payment reminders
Track Invoices & Payments With doForms
Managing invoices and payments doesn’t have to be difficult if you have the right tools.
One such tool is doForms, a mobile forms solution that makes invoice tracking faster and smarter.
You can use doForms in various business sectors, including healthcare, government and education or for international organizations.
With doForms, you can:
- Generate and send invoices directly from smartphones or tablets so you don’t have to go back to the office and can speed up your billing and payment cycles.
- Scan and upload supplier invoices with a phone’s camera, log payment due dates and set reminders.
- Monitor updates of payments in real time for instant cash flow problem awareness.
- Automate payment reminders on the go and manage them anytime, anywhere, without being tied to a desktop system.
- Generate reports directly from the app to see financial information such as cash flow and late payments.
- Boost productivity by automating data entry, follow-ups and invoice tracking.
- Save on paper and contribute to sustainable workflows and positive company image.
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How To Track Invoices & Payments: Things To Remember
To avoid common pitfalls when tracking invoices and payments, keep the following in mind:
- Set clear payment terms
- Send invoices promptly
- Organize records by status
- Track due dates for incoming and outgoing invoices
- Reconcile payments regularly
- Use invoicing software
- Communicate with clients about delays or disputes
- Monitor cash flow frequently
- Secure and back up your invoice data
Invoice Tracking: FAQs
How can mobile forms simplify the invoice tracking process? Here is more information.
What happens if you have inadequate invoice tracking?
Poor invoice tracking can lead to unpaid bills, overdue invoices, cash flow concerns and strained client/vendor relationships.
Can I track my invoices without using software?
Yes, you can track invoices using spreadsheets or manual records. However, specialized software or mobile solutions simplify the process, reduce errors and save time.
Can mobile forms help with invoice tracking?
Yes, doForms helps you handle invoices and payments on the go, make updates in real time, automate payment reminders and store financial information electronically. At the same time, you also cut down on paper costs and save time.
How can mobile forms help reduce late payments from clients?
With doForms, you can use automated reminders for past-due or outstanding invoices. This way, you can notify clients of their obligations.
How can I reduce administrative work with doForms?
doForms help you automate different tasks such as data entry, payment reminders and report generation. In addition, you can store invoices on a single platform, which reduces the time for manual processes and paperwork.
Are mobile forms secure for invoice tracking ?
Yes, doForms uses advanced encryption and two-factor authentication for authorized access to protect financial information.
How do I handle overdue payments?
First, send a polite reminder. If you still don’t get the payment, call or send an email and offer flexible payment options. For persistent delays, consider penalties or collection services.
Can I send recurring invoices to clients automatically?
Yes, doForms allows you to automatically send invoices on a scheduled basis —weekly, monthly, etc. — if you are offering ongoing services or subscriptions.
How do I prevent mistakes in my invoices?
To prevent mistakes, use invoice templates from your invoicing software or mobile form tool. Additionally, automate calculations and review invoices before sending them to clients.
Can I track invoices on my phone?
DoForms allows you to create, send and track invoices directly from your phone. In addition, you can receive real-time payment updates.
How do payment terms relate to invoice tracking?
Payment terms show when payments are due. Tracking invoices ensures you stay on top of deadlines and maintain a steady cash flow.
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