Collecting accounts receivable is no easy task; it takes a combination of organization, persistence, and patience. Every communication you send to your customers either gets you closer to or further away from being paid. Asking for payment is not easy though, and many times collectors find it to be ineffective. You’ll be amazed at how much more effective your communications can become when you utilize proven invoice follow-up best practices. It all depends on how you approach the customer, the information you provide, and your timing.

GETTING STARTED

Make sure you are following up as often as you should be. If you’re sending your invoices out via email, you should be following up with every customer to ensure they received the email. You should also be following up the day the invoice goes past due. Remaining in constant contact with your customers helps to create a relationship. Once you have formed a relationship with your customers, they are less likely to want to pay you late and cause a rift in that relationship.

SAYING THE RIGHT THING

Always remain calm and professional, this is the last line of contact your customer has with your company and it is very likely your collections processes will make a difference in whether or not they choose to work with your company again in the future. Be polite, yet firm. Let your customers know what is owed, when it is/was due, sales terms, and how they can pay. Remember to always attach a copy of the invoice in question to any written communication in case they misplaced the original. As the invoice becomes more and more overdue, you will need to send a different type of letter, change your tone on the phone, include different information and increase the pressure without burning bridges; this is a tough balancing act.

8 INVOICE FOLLOW UP BEST PRACTICES

Here are 8 best practices for crafting an effective follow-up email or letter for an unpaid invoice, designed to help you speed up payments and ensure you get paid on time, every time.

  • When sending a letter or email, always include the name of the customer, address, invoice date, amount due, and description of the product purchases of services delivered.
  • When possible address the communications to a specific person, not just a company
  • Mention the fact that the customer accepted the responsibility to pay when they signed for or ordered the product/service.
  • Never imply that the invoice was deliberately ignored by the customer- give them the benefit of the doubt with phrases such as “overlooked invoice”, “prior communications not given to you” or other statements that give the customer the option to save face.
  • Use an urgent tone that indicates the need for this issue to be resolved but be careful you do not push too hard until that becomes necessary
  • If your letters always look the same and like every other letter that comes across your customer’s desk or into their inbox, it will be that much easier for them to ignore it. By using different, yet professional, formats, font, logos,etc. your communication will stand out from other letters and make your customer give it a closer look.
  • Remind your customers of past promises made and that they agreed at the time of purchase to pay by a certain date.
  • Set a limit for a reply to the letter telling the customer that you would like a response by a given date.

What else can you do to get paid in a timely manner?
Check out our 17 tips whitepaper.