Guide · Getting paid
How bookkeepers can get their own clients to pay on time
Chasing your own clients for payment takes the same kind of time as chasing them for documents. A fixed fee, an invoice that is easy to pay, automatic reminders and a clear rule for late payment do most of the work. This guide shows how to set them up.
Most firms surveyed deal with late payment
95%
of accountants and bookkeepers surveyed experienced late payments; overdue invoices averaged 31 days late.
Australian survey commissioned by Ignition, a billing software vendor.
Every reminder you write by hand is time taken from client work, and every late payment is cash your firm is waiting for.
Four habits that get you paid on time
Bill the same way every month
A fixed monthly fee on a fixed day is easier for clients to plan for than a different amount at a different time.
Make paying easy
Add the payment option your software supports to every invoice, so the client can pay from the email in a minute.
Remind automatically
Set reminders once, before and after the due date, so nobody has to remember to send them.
Agree what happens when payment is late
Put payment terms and the late-payment rule in your engagement letter, for example that work pauses after a set time.
Automatic reminders in QuickBooks Online and Xero
QuickBooks Online
Turn on automatic invoice reminders in your sales settings and write the wording once. Reminders can go before and after the due date, but only for unpaid invoices that were emailed from QuickBooks Online, so send your invoices from there.
Xero
In the Sales menu, select Invoices, then Invoice Reminders, and turn on emailing customers. Xero's default reminders go out for overdue invoices, and you can add a reminder before the due date and edit the wording. Reminders only go out for invoices marked as sent, to customers with an email address in their contact record.
A reminder you can copy
Subject: Invoice (number) is due (date)
Hi (first name),
A friendly reminder that invoice (number) for (month) is due on (date). You can pay it online here: (payment link).
If you've already paid, thank you, and please ignore this note.
(your name)
Common mistakes
Invoicing at different times each month.
Clients can't build a routine around it.
Reminders that depend on memory.
They go out late or not at all.
No rule for late payment.
Without one, chasing is personal and awkward.
Doing more work for a client who doesn't pay.
It tells them payment is optional.
Questions
Should I charge a late fee?
That is a business and contract decision for your firm. If you do, put it in the engagement letter and apply it the same way to every client.
Should I bill in advance?
Billing at the start of the month for that month's work removes the wait for payment. Whatever you choose, say it in the engagement letter.
What if a client is always late?
Talk to them once, point to the agreed terms, and decide whether the client still fits your firm.
Want invoicing and reminders set up for you?
The Automated invoicing and payment reminders Fix Pack configures recurring invoices and automatic payment reminders, and enables an online payment option where your software supports it.
See what chasing payments costs your firm.
The free Snapshot takes about 3 minutes and works from your own answers.