5 Tips for Making Overdue Invoicing More Efficient


For a small business, the last thing you need is to chase clients over unpaid invoices. Not only is it uncomfortable, but it also takes up a lot of your time. Unfortunately, this is almost unavoidable due to one reason or another.

No matter how uncomfortable it makes you, invoicing is a critical part of any business. According to the entrepreneur, proper invoicing and follow-ups facilitate cash flow and open your business to more significant success. Here, we learn some tips on how you can write an overdue invoice letter that will get you paid.

What are the Tricks?

There is no one-size-fits-all formula for making your clients pay on time. However, by following the tips provided here, you stand a better chance of having your clients pay for every coin they owe you. The tips include:

  1. Strive to follow up at the Right Time

As you continue to do business with your clients, you can have a rough idea about how particular clients behave when it’s time to pay their dues. If a specific client regularly pays late, make a point of following up with them the day after an invoice is due.

This is not limited to the “bad clients”, though; it is important to follow up with each of your clients to avoid doubt or forgetting.

Other methods of following up on an overdue invoice are by sending a due invoice letter on days when your invoice is likely to face little completion from other clients and emailing your clients with a “friendly reminder.”

  1. Embrace Automation

Automated invoice processing relies on automation software that extracts invoice data, moves information to the account payable system, and completes the processing of invoices in the shortest time possible.

Today, most small businesses rely on invoice automation because it saves time, reduces errors that can lead to delayed payments, collects data, gives better insights, and facilitates transparency. You do not have to worry about overdue invoices with good invoice automation software as the software will follow up on your behalf. This gives you time to attend to other issues.

  1. Make Sure the Details on Your Invoices are Correct

One of the biggest reasons small businesses have many unpaid invoices is that they fail to capture all the critical details of what is supposed to be paid. In some cases, the client might be willing to pay on time, but since a detail or two is missing, he ends up not paying until clarifications are made.

Some of the details to include in an invoice include:

  • The date and invoice number
  • Amount owing
  • Your contact information
  • Reminders of previous letters
  • Payment terms
  1. Use Appropriate Language

The type of language you use when following up on an invoice that is ten days due is not the same language that you will use when the invoice is more than 90 days unpaid. For the first 15 days, the client might have genuinely forgotten about the unpaid bills. However, the more time passes, the higher the chances that the client will not pay.

  1. Offer an Alternative Payment Plan

As a small business manager, you need the money from your clients for your business to make any meaningful steps. Offering an alternative payment plan to that client that seems to be struggling with making payments is better than waiting only to receive nothing at all. Empathizing with your client is one way of ensuring that you get paid.

Other tips for making overdue invoicing more efficient include:

  • Setting and sending automatic reminders.
  • Asking for help from professionals.
  • Utilizing digital tools.

The Key Takeaway

Overdue invoices harm small businesses in different ways. Fortunately, as a small business owner, you can minimize this by offering alternative repayment plans, using the correct language, embracing automation, and always following up on time.

On the other hand, you can hire a professional to do it for you. At DOAAR, we are committed to helping small businesses grow by offering professional management services, using advanced technology to integrate our services, and striking strategic partnerships.

Learn more about our services today by reading our blogs and following us on Twitter.