Creating And Sending Invoices Through Appfolio: A Step-by-Step Guide

Appfolio is a powerful property management software that streamlines many aspects of running your business, and invoicing is no exception. Properly managing your invoices is crucial for maintaining healthy cash flow, tracking revenue, and ensuring accurate accounting. This guide will walk you through the process of creating and sending invoices through Appfolio, helping you leverage its features for efficient billing. Whether you're invoicing tenants for rent, charging owners for services, or billing vendors, this guide will provide the necessary steps to get the job done right.

We'll cover everything from accessing the invoice creation screen to customizing your invoice templates and understanding the different delivery options. By the end of this guide, you'll be confident in your ability to efficiently manage your invoicing process within Appfolio, saving you time and improving your overall financial management. Let's dive in!

1. Accessing the Invoice Creation Screen

The first step in creating an invoice is navigating to the correct section within Appfolio. There are a few ways to do this, depending on who you're invoicing:

  • For Tenants (Rent or other charges):

    • Navigate to the specific property and unit.
    • Click on the "Tenant" tab.
    • Select the relevant tenant.
    • Click on the "Charges" tab.
    • Click "Add Charge" to create a new invoice item. This will be added to the tenant's ledger.

  • For Owners (Management fees, maintenance costs, etc.):

    • Go to the "Owners" tab.
    • Select the relevant owner.
    • Click on the "Charges" tab.
    • Click "Add Charge" to create a new invoice item. This will be added to the owner's ledger.

  • For Vendors (Services rendered):

    • Go to the "Vendors" tab.
    • Select the relevant vendor.
    • Click on the "Bills" tab.
    • Click "Add Bill" to create a new invoice item. This will be added to the vendor's ledger.

The key takeaway here is to start from the specific entity (tenant, owner, or vendor) you need to invoice. This ensures the invoice is correctly associated with their account.

2. Entering Invoice Details

Once you're on the "Add Charge" or "Add Bill" screen (depending on who you're invoicing), you'll need to fill in the necessary details. This is where accuracy is paramount. Here's a breakdown of the key fields:

  • Date: This is the date the invoice is issued. Appfolio typically defaults to the current date, but you can adjust it as needed.
  • Due Date: This is the date the payment is expected. Setting a clear due date is crucial for timely payments. Appfolio allows you to set a specific date or calculate it based on a number of days from the invoice date (e.g., Net 30).
  • Description: Provide a clear and concise description of the charge. For rent, you might write "Rent for [Month, Year]". For maintenance, be specific about the service provided (e.g., "Plumbing repair - Leaky faucet in bathroom").
  • Account: Select the appropriate general ledger account for the charge. This ensures proper categorization of your income and expenses for accounting purposes. Common accounts include "Rental Income," "Management Fees," and "Maintenance Expense."
  • Amount: Enter the amount being charged. Double-check this field to avoid errors.
  • Tax (if applicable): If the charge is subject to sales tax, select the appropriate tax rate. Appfolio allows you to configure different tax rates based on your location and the type of service.
  • Property (if applicable): For charges related to a specific property, ensure the correct property is selected. This helps with property-level reporting.
  • Attachments (Optional): You can attach supporting documents, such as receipts or contracts, to the invoice. This can be helpful for providing additional details or documentation to the recipient.

Tip: Use clear and consistent descriptions to make it easier for your tenants, owners, or vendors to understand the charges.

3. Customizing Invoice Templates (Optional)

While Appfolio provides default invoice templates, you can customize them to reflect your brand and include specific information. This can enhance professionalism and improve communication.

  • Navigate to Settings > Custom Fields & Templates > Invoice Templates.
  • You can create new templates or edit existing ones.
  • Customize the header, footer, and body of the invoice. You can add your company logo, contact information, and payment instructions.
  • You can also customize the fields that appear on the invoice. For example, you might want to add a field for "Property Address" or "Unit Number."

Important Note: Customization options may vary depending on your Appfolio subscription level.

4. Previewing and Saving the Invoice

Before sending the invoice, take a moment to preview it to ensure everything is accurate and visually appealing.

  • After entering all the invoice details, click the "Preview" button (if available) or "Save."
  • Review the invoice carefully, paying attention to the amounts, descriptions, and dates.
  • If you notice any errors, click "Edit" to make corrections.
  • Once you're satisfied with the invoice, save it.

5. Sending the Invoice

Appfolio offers several options for sending invoices:

  • Email: This is the most common and convenient method. Appfolio can automatically email the invoice to the tenant, owner, or vendor. You can customize the email message to include a personalized greeting or additional information.
  • Portal: If your tenants or owners have access to the Appfolio portal, they can view and download their invoices directly from the portal. This is a secure and efficient way to deliver invoices.
  • Mail: You can print the invoice and mail it to the recipient. This option is less common but may be necessary for some individuals.
  • Text Message: Appfolio allows you to send payment reminders via text message, which can be helpful for encouraging timely payments.

To send the invoice via email or through the portal:

  • Go to the tenant's, owner's, or vendor's profile.
  • Find the invoice you want to send.
  • Click the "Send" or "Share" button (the exact wording may vary).
  • Choose the delivery method (email or portal).
  • Customize the email message (if sending via email).
  • Click "Send."

6. Tracking Invoice Status and Payments

After sending the invoice, it's important to track its status and record payments. Appfolio provides tools for managing this process:

  • Invoice Status: You can track the status of each invoice (e.g., "Sent," "Viewed," "Paid," "Overdue"). This helps you identify outstanding invoices and follow up with recipients.
  • Payment Recording: When a payment is received, record it in Appfolio. This ensures that the invoice is marked as paid and that your financial records are accurate.
  • Reporting: Appfolio offers various reports that provide insights into your invoicing and payment activity. You can generate reports to track outstanding balances, identify late payments, and analyze your revenue streams.

Common Mistakes to Avoid:

  • Incorrect Dates: Double-check the invoice date and due date to avoid confusion.
  • Inaccurate Amounts: Verify the amount being charged to prevent disputes.
  • Missing Descriptions: Provide clear and concise descriptions of the charges.
  • Failure to Track Invoice Status: Regularly monitor the status of your invoices to identify outstanding payments.
  • Not Recording Payments Promptly: Record payments as soon as they are received to maintain accurate financial records.

Conclusion

Creating and sending invoices through Appfolio is a straightforward process that can significantly improve your property management efficiency. By following these steps and avoiding common mistakes, you can ensure accurate billing, timely payments, and healthy cash flow. Remember to leverage Appfolio's customization options to create professional-looking invoices that reflect your brand. Regularly tracking invoice status and promptly recording payments are also crucial for effective financial management. By mastering the invoicing features within Appfolio, you'll be well-equipped to manage your financial operations with confidence and ease. Take the time to familiarize yourself with these features, and you'll reap the benefits of a streamlined and efficient invoicing process.