Client ACH payment checklist: 5 items before and after

Key takeaways

• Check your taxpayer details before the first payment.
• Give the client clear invoice details and transfer instructions.
• Check the posted amount before closing the invoice.
• Record partial payments and investigate differences.
• Save payment records together and check them monthly.

It is the stretch after you send it: figuring out whether the money has actually arrived, which invoice it belongs to, and whether you can prove it later. An ACH payment, the electronic bank transfer many clients use to pay a bill, skips the envelope and the paper check. That removes some problems. It also makes it easy to assume a payment is finished when it has only started, or to file it under the wrong invoice.

This checklist has five items. The first two happen before the money moves. The last three happen after. Work through them for every client payment, not only the large ones. When a client says "I already paid," or your bank statement looks wrong, or tax season arrives, you will have a clear trail instead of a pile of guesses.

This is general information for freelancers and small-business owners. It is not tax or legal advice. Your bank's rules and your accountant's advice matter more than anything here.

1. Before: collect a W-9 and a correct taxpayer ID

Start before the first payment arrives. Your client needs a few details from you to report what they paid, and a missing or wrong detail can cause trouble later. The IRS explains that when you begin to receive payments reportable on Form 1099 or W-2G, you "must furnish your TIN in writing to the payer and certify under penalties of perjury that it's correct" ( IRS, Backup withholding "B" program). TIN stands for taxpayer identification number.

In practice, this often means a form. The same IRS page notes that in some cases the payer will give you Form W-9, Request for Taxpayer Identification Number and Certification, or a similar form. When a new client sends one, fill it out completely, sign it, and return it before you invoice. If a client never sends one, ask them whether they need you to complete a W-9. It is much easier to ask at the start than to chase a missing form after the first payment has landed.

Two things matter here. First, the details on the form should match your tax records. Second, a wrong or missing number can lead to withholding. The IRS says that if a payer receives a notice that the TIN is incorrect or missing on the Form 1099 they submitted, "they must begin backup withholding immediately." That means money you are owed may be held back. You do not want to learn this from a short payment.

The IRS also describes when it sends a notice to the payer. It will issue a CP2100 or CP2100A notice if the payee's TIN is missing or obviously incorrect, which the IRS describes as "not 9 digits or contains something other than a number." It will also send one if the name and TIN on the information return do not match the IRS's records ( IRS, Backup withholding "B" program). So check two things on your form: the number has nine digits and no letters, and your name matches what appears on your tax filings. A name that is spelled differently, or a business name where a personal name belongs, can cause a mismatch even when the number is right. For a closer check, see matching your name and W-9 details.

Save the signed form in a folder you can find later. Name the file with the client's name and the year. You will want it on hand if a notice ever shows up, and you will not want to search your email for it at that point.

2. Before: put the payment details on every invoice

The second item is about making the payment easy to match. Make the invoice details clear before asking the client to pay. A good invoice does four things.

First, it shows a clear invoice number. Use one number for each invoice and never reuse it. When the deposit arrives, you want to type a single number into your search and find the record.

Second, it shows the exact amount due and the currency. If the total includes tax, say so on the line. If you accept partial payments, say that too, so the client knows whether a partial payment will close the invoice.

Third, it shows the due date. A date on the page gives both you and the client a reference point. It also makes the next step easier, because you know when to start watching for the deposit.

Fourth, it names the payment method and tells the client what to write in the payment memo. Ask the client to put the invoice number in the memo line of the transfer. Check the bank entry for that memo when matching the payment. If the client leaves the memo blank, you will still have the amount and date to work from, but the invoice number makes everything faster.

Bank details need care. Send them only through a channel you trust, and do not paste account and routing numbers into a casual chat. If a client asks you to change the account details in the middle of a job, call them on a number you already have before you accept the change. A short check like this protects you from fraud, and it protects the client from sending money to the wrong place.

Last, record the expected payment in your own tracking sheet the day you send the invoice. Write the invoice number, the client, the amount, and the due date. The sheet is the place where you will mark the invoice as paid later. Having it ready before the money moves keeps the after-steps quick.

Payment terms belong in writing too. If you charge a late fee, say so on the invoice or in your agreement, and say what triggers it. If you expect a deposit before work starts, state that. A client who reads clear terms before the first invoice is far less likely to argue about the timing of a payment after it is due. You do not need a long contract for this. A few plain sentences in your invoice footer or your email confirmation are enough to set expectations for both sides.

3. After: confirm the money landed, not only that it was sent

A client saying "I sent it" is not the same as money in your account. Treat the client's word as a starting point, then check your bank.

Timing matters here. The Rentec Direct page on online rent collection says that "ACH payments are transmitted to your bank account within 2 days; however, banks vary on how long it takes for them to show it as deposited into your account" ( Rentec Direct, Collect Rent Online). That page describes rent payments through that service; check your bank's timing for your client's transfer. The same page adds that "larger national banks often show the payment as posted or pending within 24 hours of it being transmitted" ( Rentec Direct, Collect Rent Online).

Read those two quotes together. A payment can be sent and not yet visible. It can show as pending before it shows as posted. And the speed depends on your bank and the client's bank, so you cannot predict it from one example. Your practical rule should be simple. When a payment is due, wait for the timing window to pass before you chase it. If the window has passed and you still see nothing, then contact the client with the invoice number, the amount, and the date they sent it.

When you check, look at your bank app or statement, not only at a notification. Pending entries can change, so note the status you see and check again. Do not mark an invoice paid just because a pending entry appears. Mark it paid when the entry is posted to your account with the right amount.

Keep a short note of what you checked and when. A line such as "Checked Monday, showed pending, posted Tuesday" is useful later if a question comes up. Writing it down takes almost no time, and it can save a lot of digging when a client asks what happened.

If the window has passed and nothing has posted, follow up in a calm, specific way. Skip the vague "Just checking in." Instead, write something like this: "Hi, I have not yet seen the payment for invoice [invoice number] for the full amount on my account. Could you check the transfer status on your end? If it went out, could you share the date and any confirmation number your bank gives you?" A message like that gives the client an easy next step and gives you the details you need to trace the payment. Keep the tone friendly. Most delays are simple, and a clear question gets a faster answer than a frustrated one.

4. After: match the deposit to the invoice

Once the deposit posts, match it to the invoice. Open the bank line, find the invoice number in the memo if the client included it, and compare the amount with the invoice total. If you do not see a memo, match by client name, date, and amount.

When the amount matches exactly, mark the invoice paid in your tracking sheet. Write the date the money posted to your account, not the date the client said they sent it. Those dates are often different, and your records should show the one that matches your bank.

When the amount is short, do not guess. Ask the client what was taken out or what they meant to send. Sometimes a bank or transfer service deducts a charge before the money arrives. Sometimes the client paid a different invoice, or paid less on purpose. Write down what you learned. If the difference is a fee you did not expect, decide with your accountant how you want to record it.

Partial payments need their own handling. If a client sends part of an invoice, record the amount they actually sent, then show the remaining balance on the invoice. Do not mark the whole invoice paid because some money arrived. Send the client a short note that shows what has been received and what is still open. This keeps your tracking sheet accurate and makes the next payment easy to match. If the client tells you they will pay the rest on a set date, write that date next to the open balance so you know when to look again. See handling deposits and partial payments for related invoice tracking.

When the amount is over the invoice total, check whether the client paid two invoices at once or sent an extra amount by mistake. Do not spend it or assume it is yours until you know. Contact the client, explain what you see, and ask how they want it handled.

When a payment matches more than one invoice, split the record. Use separate lines in your tracking sheet, one for each invoice, and tie each line to the same bank entry. This keeps your totals honest and makes each invoice easy to close.

If you use accounting software, check how it handles matching bank entries to invoices. The principle does not change: the bank entry is the proof, and the invoice is the claim. Your job is to make the two agree and to write down any gap between them.

Illustrative example: a partial payment

An illustrative invoice totals 500, and the posted payment is 330. Record the posted amount and keep the invoice open for the balance.

5. After: save a confirmation and keep the record

The final item is the one people skip. It is also the one that matters most when someone asks questions months later.

Send the client a short confirmation once the payment posts. Include the invoice number, the amount received, the date it posted, and the payment method. A confirmation does two jobs. It tells the client their account is settled, and it gives you a dated statement of the transaction in your own words. If the client disputes the payment later, a confirmation tied to the bank entry is a strong place to start.

A simple tracking sheet helps more than most people expect. One row for each invoice is enough. Use columns for the invoice number, client name, invoice date, due date, amount, payment method, date the money posted, the amount received, and a notes column for anything unusual. Add a column for the W-9 status if the client needs one. When you open the sheet, you can see at a glance which invoices are open, which are partly paid, and which still need a form. The sheet does not replace your bank statement. It tells you what to look for in it.

Save the records in one place you can find. A simple folder for each client works well, with subfolders or file names for each year. Keep the invoice, the confirmation, a copy or export of the bank entry, the signed W-9, and any notice you receive. Store copies in a second place as well, such as a cloud drive or an external drive, so a lost laptop does not erase a year of work.

Run a short monthly check. Compare your tracking sheet with your bank statement. Look for invoices that should be paid but are not marked, for deposits that do not match any invoice, and for any open items where you are still waiting for a form or a reply. Fix small gaps now. A missing W-9 is easy to chase in the same month. The same gap found a year later can be a much bigger job.

Pay attention to tax paperwork throughout the year, not only in the spring. If a client tells you a name or taxpayer number has changed, update your records and ask for a new W-9 before the next payment. If you receive a notice about a mismatch, respond promptly and check that your details match your tax records. The IRS notice process is set up to flag problems, and a quick fix is far better than a surprise hold on a payment.

Today, open your next invoice and check its payment details before sending it.

Related guides: ACH and PayPal limits on invoice payments: 6 to know · Federal prompt payment: 3 clauses to match your contract · Invoice approval checklist: 6 checks for billing teams.

Questions about payment records

How long should I keep payment records?

Decide how long you will keep these records, and check that decision with your accountant. Tax rules and business needs differ, so do not pick a number from a blog post. What matters is that you keep what you need for as long as you may need it, and that you can find it quickly.