The reality is that some clients are not going to pay your invoices on time. Why don’t my clients pay on time? Are you chasing invoices? How can you deal with unpaid invoices? The challenge is that this activity is time consuming.
After all, you have done the work. You expect to get paid. It can get pretty tricky when you have to hold this conversation with a key client. You are getting frustrated. How can you deal with invoices that remain unpaid. In this post, I will provide you with five tips to help you to deal with unpaid invoices.
Let’s try and sort this out.
When you generate your invoices, be sure that you stipulate the payment terms. Let them know that late payment will attract late fees. Enforce those late fees when necessary so they will understand you mean business.
Provide various ways to pay
Do not make it difficult for your clients to pay you. Other than the usual way to pay by direct payment to your account, do provide other options. Cheques and PayPal are other acceptable forms of payment. If you accept cheques, be sure to annotate your invoice with the mailing address. State who the cheque should be payable to.
I love using accounting tools. The good thing about them is that you can set up your system to remind your clients when the invoices are past due. This prevents you having to deal with these difficult conversations. I use Freshbooks but there are various tools on the market such as Quick Books or Xero. If you use a spreadsheet or word document to send invoices, this is not a productive way to manage your invoices.
Telephone the client
We are all busy. At times, things get missed. It is not intentional. This might be the case for your client. Give them a call to check on the status. If they are difficult to reach, keep trying to keep the pressure on.
Use a Virtual Assistant to deal with unpaid invoices
Consider using a Virtual Assistant to make calls to chase unpaid invoices. This will takes the pressure off of you especially if you find this awkward. Your Virtual Assistant will be your “Accounting Department” Manager. This is a good way of delegating this activity. This kind of delegation gives you quality time to focus on getting new clients.
What happens if things get ugly?
Refer to my previous post.
If your invoice still remains unpaid, there are a few options to try:
- Mediation Services
- Go to Court. You can make an application online
- Send an official demand for money
To find out more about these options, review the information on this UK Government site.
If you have other tips which has helped you to deal with unpaid invoices, why not share these with us by responding in the comments section.
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