What do you do when clients haven’t paid?

What do you do when you have clients who won’t pay their overdue invoices?

Recently, I helped a client follow up on a $3500 outstanding overdue invoice and helping clients like this is such a satisfying part of my job!

When I notice there are multiple overdue invoices in my client’s Xero, I ask if they have followed up and when the payment is expected… and often they haven’t.

Here are some of the reasons business owners haven’t asked:

“I’m worried they haven’t paid because they aren’t happy with my service”

Did they tell you this? No? – time to follow up!

“I know their business is struggling”

Have you considered offering a payment plan? They know the money is owed and will appreciate you helping them and taking the pressure off.  

“I feel embarrassed asking for the money”

Don’t be! The services and cost have already been agreed on so no need to be embarrassed. The invoice may have gone into the junk mail, or they may have forgotten to pay (I have done this myself 😬 it’s easy to do!)

Here are some tried and tested ways I have helped clients get their outstanding invoices paid on time

👩‍💻  Invoice as soon as the work is complete

Did you know that if you invoice as soon as the work is complete, the client is much more likely to pay quicker?

⏰  Set up Xero reminders

Xero reminders is a feature that is automatic, you can set and forget and choose the frequencies. I have my Xero reminders set for 3, 7, 10 days overdue and if it gets to 2 weeks overdue, I follow up with a phone call.

Tip: It’s important to make sure you’re bank reconciliations are up to date when using this feature as you don’t want Xero sending reminders to clients who have paid but the payment just hasn’t been applied to the invoice yet

📞 Pick up the phone!

Go on, do it! The client I helped last week said he was a bit hesitant to, so I called and it turns out that the client was away from the office that week and after I called, the payment was received by the end of the day.

What’s the process you use to follow up on overdue accounts? I would love to hear from you.

If you don’t want to do this yourself and need help getting paid, this is a service we offer. Email courtney@tos.co.nz to find out more


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