A late invoice might be ignored by your clients, who may no longer view you as a priority. You’ll want to send the invoice to your customers immediately after you have delivered your goods or your services are complete. Remember, an invoice is nothing more than a payment request. Getting paid on time starts with sending an invoice on time. You’ll want to send your invoice to the company’s accounting department to ensure that the right person receives your invoice. But in larger organizations, your client may have a staff member in charge of billing and payments. If your customer is a sole proprietor, then you’ll be dealing with them directly. While you don’t have control over how your customers respond to your invoices, there are some strategies you can use to get paid promptly. The best way to prevent your outstanding invoices from becoming overdue is to get paid as soon as possible. If you do, you’ll be alerted to customers who have exceeded their due date. This distinction is why it’s important to keep track of your invoices. An outstanding invoice refers to an invoice that has been sent to a client who has not yet paid their balance.Īn outstanding invoice only becomes a past due invoice after the payment due date. While the terms are related, it’s important to understand that an outstanding invoice is not necessarily the same as a past due invoice. How can you avoid the pitfalls that come from outstanding and past due invoices? This article offers tips that can help you get paid on time and keep your business running smoothly. If you’re a small business owner, getting paid on time is essential to your financial health and success.
That same study also showed that 82% of companies fail due to poor cash flow management. Bank, small businesses are owed an estimated $825 billion in unpaid invoices. Many small businesses indeed fail, but the blame doesn’t entirely lay with their owners.
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