A few of my clients routinely run late on paying their invoices. They are repeat customers who always pay eventually, but their inconsistency makes it difficult for me to plan ahead. Any recommendations on wording for the note on my reminder invoice? I want to convey that I appreciate their business while also reinforcing that I need these invoices to be paid on time!
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Always a tough spot to be in, especially when you're the service provider and debt collector all rolled into one, which we often are as sole proprietors.
I don't work without a deposit, and I don't deliver my images or video (my final product) without being paid the balance.
As for the wording, I struggle with that as well.
Asking for a deposit is a really smart idea, especially for project-based work. As a freelance writer/editor I've never tried it before but if I'm contracting for, say, 5 blog posts to be written on a pay-per-post basis I might send the initial invoice after I've completed the first assignment instead of all five (they all say "payment due within 30 days of receipt"). I wouldn't do this for a new client but for the ones I have in mind I think it might work. Then when they're "late" they're actually on time - haha!
Great question, @Ianbel08
Just like you, we here on the QB Community Team have wondered about wording and timing for invoices when you've got a client (or clients) from whom you need to collect. We created the following series of articles to help out with just that:
There are links to more resources from within these pieces as well. I hope there are some ideas in there that help you out!
To be honest, I actually think that some of the phrasing in your very post might be a valuable addition to anything you write. Particularly letting your customers know that it is the inconsistency that is making things difficult, and why, might just get you to a better situation for a couple of them.
Have you thought about increasing terms in exchange for a credit card or auto-payment set-up?
Its a question that we are always asking ourselves especially nowadays. One way that worked for me was -
Sir / Madam could you please instruct us on as to how and when we should collect our dues from you?
That sort of jolted them into giving the right answer stating the right time by which they would pay. Got reorders from the client too. Hope it works for all of you too.
I think the below are the two components to getting paid on time
1.Automating the task of sending email reminders.well timed email reminders are known to improve DSO's
2. The content that goes into those mails needs to be thought through
I would suggest writing on a board the timeline before and after the invoice due date in days
After this come up with mail content for each of these dates.Make sure these automated emails have one of you/your team members in cc so that they can reply back to you to have any questions cleared.
Btw we are a small software(PayorCRM) company automating the above function