The Web of Overdue Invoices
Lya Kimbrough, MBA | Lookout Bookkeeping
There’s nothing creepier than invoices that never seem to get paid. They start out innocent enough—“Net 30” sounds reasonable, right? But before you know it, 30 days turns into 45, 60, 90… and suddenly your cash flow is tangled in a sticky web of overdue invoices.
When money you’ve earned isn’t flowing in, it doesn’t just slow growth—it drains your energy and makes it harder to plan ahead. You can’t pay bills, invest in new opportunities, or even breathe easy when you don’t know when the next payment is coming.
Let’s face it: chasing down late payments can feel awkward. You don’t want to sound pushy, but you also can’t afford to be the “nice ghost” that never follows up.
Here’s how to escape the web before it wraps you up:
1. Spin Stronger Threads Up Front
Your best defense against overdue invoices starts before you send the first one.
Set clear payment terms and expectations right in your contract or proposal.
- Be specific: “Payment due within 15 days of invoice date.”
- Add a late-fee policy, even if you rarely enforce it, as it signals that you take payment seriously.
- For recurring clients, offer auto-billing or ACH draft to keep things seamless.
When you set the tone early, you show professionalism and avoid awkward follow-ups later.
2. Make It Easy to Pay
Sometimes payments are late simply because it’s inconvenient to pay.
Integrate payment links directly into your invoices (QuickBooks, Gusto, and others make this simple). Accept digital options like credit card or ACH transfer; no one should have to mail a check in 2025.
The easier you make it, the faster the money moves.
3. Automate Reminders — Before It Gets Awkward
Automated email reminders are like friendly spiderlings keeping your web tidy.
Send a nudge a few days before the due date, again on the day it’s due, and another one a week after. Keep the tone light and professional. Automation keeps you from chasing payments manually and helps your clients stay accountable without the tension.
4. Track Your Aging Report Monthly
Your aging report is your financial flashlight; it shows who owes you and how long it’s been outstanding. Make it a habit to review this every month so you can follow up early, not months later when the trail’s gone cold.
Bookkeeper tip: Color-code your aging report by time frame (0–30 days, 31–60, 61–90+) so you can see patterns at a glance.
5. Nurture the Relationship, but Protect Your Boundaries
When a good client is occasionally late, approach it with curiosity, not accusation. Sometimes it’s a missed email or a cash-flow issue on their end.
But if late payments become a habit, it’s okay to pause work until invoices are caught up. You’re running a business, not a charity—and protecting your cash flow means you can serve all your clients better.
Bottom Line
A healthy business has steady cash coming in, not cobwebs collecting in accounts receivable. Don’t let overdue invoices trap your growth—keep communication clear, systems automated, and follow-up consistent. Looking for a system to send proposals & collect monthly payments easily? Look no further than Anchor—my favorite system for monthly payments. Check them out at this link. Disclosure: Yes, this is a referral link. You will receive a $50 credit when you sign up through my link, and I will receive the same.
Want to read more about money on the blog? Check out this post on What Your Financial Reports Are Trying to Tell You (If You Know What to Ask).
