Invoicing is a vital part of any company as that is how you get paid when you run a company. While every owner hopes that they never have to deal with late invoices but that is a reality and thus you need to have a system to deal with the late invoices so that you can still get the money you worked for and that it is not something that just gets pushed to the side. The first step in managing the unpaid invoices for businesses is to have a place to organize those that have been paid and unpaid. By having a system to at least know right off the bat how many people have paid you and what you are still waiting on is a great start. This can be done with two files so that you can just take a quick look at things. But that doesn’t help you manage the invoices that are late and for that, you need to have guidelines and figure out both the due dates for the invoices and what the penalty is for being late.
When you set these things up then the customers need to be aware of them so you will need to send them another notice with their due date and what the late fees are with your company if the customer is late in paying you for the work that you have provided for them. Thankfully there are a lot of customers who don’t want to deal with late fees and they will go ahead and pay the bill on time. On the other side though there are just as many people who don’t seem to care or get in over their head and then have stuff that they just don’t have the money for. But that does not mean that you should be punished for the debt that the customer has neglected to pay. When the customer is late feel free to give them a call letting them know that the bill is late and what the late fee is. This is a great reminder to well-hearted customers and being polite at all times goes a long way.
But at this point, you will need another folder for the late invoices and a place in your computer to keep track of the customer’s account that way if they do call you it is something that you can access quickly and without a second thought. When you have invoices that are just sitting and getting more fees attached at some point you just know that you are not going to get the money. But what you can do for the customer to still be held responsible for the debt is you can report the unpaid invoices for businesses to the customer’s credit which will affect their ability to get loans and will follow them around until they do eventually pay off the debt. By going to a creditor you are also able to get some of the money back for yourself. When you sell to a creditor or a debt collector the first thing that will happen is you will get a fraction of the bill meaning that you will only see about twenty percent of the money that is owed to you but on the other hand at least you are getting something for the work that you did and know that you don’t have to work with that customer again as it is in your file on them.