Wording for Reminder Invoices

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.

Great question, @Anonymous

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:

Frustrated by Late Payments? Some Tips for Tracking Down Your Dollars

Make Every Invoice Work Faster and Better Than Ever Before

The Mighty Invoice: How to Put This Powerful Tool to Work

There are links to more resources from within these pieces as well. I hope there are some ideas in there that help you out!

Hi 

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

---10 ------5-----3----1-------0--------(-3)----------(-10)----------------------(-20)--------------------------

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

Regards

Megan

I deal with this all the time as a small distributor selling to other small independent businesses. I don't think there's a one size fits all approach here.  Some customers respond to email, some to fax some to snail mail and some need a phone call or personal visit.  The least fun side of small business!

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@WineGuy wrote:

I deal with this all the time as a small distributor selling to other small independent businesses. I don't think there's a one size fits all approach here.  Some customers respond to email, some to fax some to snail mail and some need a phone call or personal visit.  The least fun side of small business!

 

@WineGuy you bring up a really good point. Clients do have preferred forms of communication. How do you keep track of who responds faster to what? Do you make notes and, if so, where do you keep them for future reference?

Hi Emily.  Our company keeps a master aging spreasheet with notes as to what action has been taken to collect.  After many years of dealing with a lot of the same usual suspects you get to know what needs to be done.  Fax is fast and cheap but not a lot of people use it anymore.  Email is not always reliable, people and addresses can change often.  When in doubt we snail mail.  It's slow, tedious and costs money but you know it's harder for them to ignore an invoice copy stamped "Past Due" in bright red ink.   I leave the delicate task of phoning/personal visits to the sales reps who call on the accounts.   They are most likely to get to the right person without killing the account.  Fun fun!