What should you check before chasing an invoice?

Check your own records first. Confirm the recipient, invoice details and agreed due date before asking the customer to act. Zoho specifically recommends these checks before payment recovery.

Accounts receivable means money customers owe your business for goods or services already supplied on credit. It is commonly represented by invoices payable within an agreed period. See the accounts receivable definition for the accounting background.

A practical preflight check

• Match recent incoming payments against the invoice.
• Subtract any part payment already received.
• Check the customer's agreed payment deadline.
• Find the invoice delivery record.
• Look for any unresolved complaint about the work.
• Identify the person who actually approves payment.

Hypothetical example: a freelance photographer sends an invoice to a restaurant manager. The manager approves the photos, but the owner handles payments. Ask who needs the invoice and whether anything is missing before sending another reminder to the manager.

For your own records, label an invoice overdue only after its agreed deadline has passed. Keep invoices that are still within their payment period in a separate view. Give each record a clear next action.

How do you write a payment reminder email?

Make the amount, invoice reference and requested response easy to find. Attach the invoice again and include your accepted payment method. These details follow Zoho's reminder checklist.

First reminder template

Subject: Payment reminder for invoice [reference]

Hi [name], I'm following up on invoice [reference] for [service]. The remaining balance is [amount], and the agreed payment date was [date]. I've attached the invoice again.

Please confirm when payment will be made. If a document or approval is missing, let me know what you need. If you have already paid, please send the payment date and reference so I can check our records. Thank you, [name].

Replace every placeholder before sending. Check the balance against your records, particularly when the customer has paid a deposit. Use a neutral subject line that someone can forward to their finance colleague.

When a promised date passes

Hi [name], we agreed payment of invoice [reference] would be made on [date]. It has not appeared in our account. Please confirm the payment status and a revised payment date by [response deadline]. If anything is blocking payment, please explain what needs resolving.

Use this second version only when that earlier agreement exists. Keep the response deadline separate from the original invoice deadline. These are suggested business messages, not formal legal notices.

For help making the subject clear, use the email subject line guide. Keep payment requests focused on the invoice rather than adding promotional copy or unrelated project questions.

What should you do when the customer does not respond?

Call after an unanswered written reminder and ask what is holding payment up. Stay calm and avoid assuming the reason. Zoho recommends a professional phone conversation at this stage.

A short call outline

1. Confirm you are speaking to the right person.
2. Ask whether the invoice has been received and approved.
3. Ask what must happen before payment can be released.
4. Agree who will do what, and by which date.
5. Send a written recap and request confirmation.

Try: “I'm calling about invoice [reference]. Is there anything stopping it from being paid?” If the answer is “soon,” ask which date you should record. Leave the call with a named action, not just reassurance.

Discussing instalments

An extended deadline or instalments may be worth considering when the customer has financial difficulties. Your own cash position matters too, as Zoho's guidance explains. Review your upcoming commitments before accepting a proposal.

Write down each payment amount and date. State the balance remaining after each instalment. Keep a proposed reduction of the debt separate from a proposal simply to pay it over time.

Where ordinary contact has failed, gather the records before deciding on escalation. Zoho recommends retaining the evidence and seeking professional legal advice before legal action. Read its escalation guidance, then check the appropriate route for your jurisdiction.

What belongs in a simple payment tracker?

I suggest one row per invoice, with a named owner and next action. Use Excel, Google Sheets or the accounting software you already have. Start with the information you need for a decision.

• Customer and payment contact.
• Invoice reference and original amount.
• Payments received and remaining balance.
• Agreed due date.
• Last contact and customer response.
• Next action, owner and follow-up date.
• Any dispute or instalment agreement.

Hypothetical example: a small marketing agency has several people speaking to the same client. Assign one person to handle payment reminders. Ask everyone else to put relevant replies in the same record before contacting the client again.

Keep a promise to pay separate from money actually received. Update the balance after checking the incoming payment. Connect this review to your weekly cash flow plan so you can decide which commitments need attention.

If you later automate the tracker, first define who checks payment status and who stops reminders. The Google Sheets workflow guide is a related starting point. Test your proposed process with a paid invoice, a disputed invoice and a partial payment before using it more widely.

Which payment terms should you agree before starting?

Agree the payment schedule in writing before doing the work. Consider an advance payment and invoice promptly at the agreed stage. These are among Zoho's prevention recommendations.

Invoice payment terms are the conditions describing when and how the customer must pay. For example, the term Net 30 means payment is due within 30 days of the invoice date. This definition appears in the payment terms reference.

Build your agreement around these questions

• What exactly is included in the price?
• Is an advance payment required?
• Which delivery stage triggers each invoice?
• What is the payment deadline?
• Who approves the work and who processes payment?
• How should the customer raise a concern?

Hypothetical example: a designer building an online shop could propose payments at agreed project stages. Before starting, ask the customer to confirm what counts as completing each stage. Choose amounts based on the actual project rather than copying an arbitrary deposit percentage.

Put these terms in your business proposal and confirm acceptance before work begins. For an ongoing service, also review the recurring billing guide. Decide who handles exceptions before scheduling routine reminders.

Do not add a surprise late fee. Zoho stresses communicating and agreeing late fee terms in advance; check local requirements before applying them. Its late fee discussion is general guidance, not a jurisdiction-specific rule.

How can you turn this into a weekly routine?

Reserve a short review and leave it with decisions. The following is a suggested routine, not a legal timetable or a universal reminder schedule. Respect any response deadline you have already given.

1. Reconcile. Check incoming payments and correct balances.
2. Prioritise. Select overdue invoices needing attention.
3. Contact. Send a relevant reminder or make the agreed call.
4. Resolve. Assign missing documents and disputes to an owner.
5. Schedule. Record the next action for every open item.

Review overdue balances, missed promises and unresolved disputes. Count actual receipts separately from expected receipts. If the same customer repeatedly needs chasing, review the terms you are willing to offer for future work before accepting another order.