The Difference Between Unpaid and Overdue Invoices
Unpaid Invoices
Unpaid invoices are invoices that you have sent to your customers that have not been paid yet. Unpaid invoices are also classified as “outstanding”. This does not mean that they are overdue.
Overdue Invoices
Overdue invoices are invoices that you have delivered to a customer, which haven’t been paid and are past the due date. Also called “past due”, these outstanding balances can clog up your cash flow and restrict you of much needed capital. In fact, 82% of businesses that fail do so because of cash flow problems.
Tips for Getting Invoices Paid Quicker
Provide Estimates:
Providing a customer an estimate can make for a more frictionless payment. Giving your customer a tangible number makes it easier for them to budget, with a greater transparency of payment terms, since there were very clear expectations set forth from the start.
Invoice Right Away:
When you invoice right away, you help ensure there are no miscommunications. Sending an invoice immediately shows that you take your work seriously – and so should your customer. In addition, the fact that you just finished providing a service to your customer means that your customer will still have you and your business fresh in their memory. Providing an invoice shortly after service greatly increases the chances of being paid sooner.
Online Payments:
Our society has rapidly evolved, with 8 out of 10 Americans now preferring online shopping. With COVID-19, the way we interact with other businesses has also changed. Companies that were able to accept online payments have a greater likelihood of being able to stay afloat longer. As a business owner, it is crucial that you adapt to current trends to meet your customers needs, and to make it easier to get paid. Global society is now moving towards contactless payments. In fact, contactless payments have increased by 150% since March 2019.
Automate Invoice Follow Ups:
Sometimes you don’t have time to chase overdue invoices. With automated messaging, you can have your software send out messages to remind your customer when a payment is due or when a payment is overdue. As a business owner, this can provide time-saving benefits that can allow you to pursue higher grossing activities, which can allow you to further grow your business.
Why Do Clients Not Pay Their Invoices on Time?
There are several reasons that clients may not be paying their invoices on time. One of the most common reasons for lack of timely payment can boil down to miscommunication. Often you may have an overdue invoice and when you manage to reach the customer their claim is “I never received the invoice” and often, they may not be wrong.
Another common explanation for not being paid on time can be due to the acceptable payment methods. If you only offer options to pay via credit card and the business only operates with physical checks, this can delay the payment process.
Collecting Payments from Late-Paying Customers
Normally, when attempting to collect payments from late paying customers you would have to go through a cat and mouse game where you have to attempt to reach the customer. This can involve sending mail, phone calls, or a face to face conversation. If there is no resolution, then you have to go through the tedious tasks of finding legal assistance in order to make sure to get paid. Wouldn’t you like to find an easier way to collect on your overdue balances?
Biller Genie
Stop chasing down those overdue invoices. Biller Genie makes it easy to reduce those outstanding balances. Biller Genie’s powerful features allow you to automate your invoice process from bill presentment to payment and reconciliation, with no new software to learn. In other words, Biller Genie’s e-invoicing solution takes care of sending out invoices and other communications while making the payment process smoother than ever.
Automated Reminders
With the Invoice Messenger, you can send out communications on a custom schedule of your choosing. You simply create the invoice and The Genie will send out the invoice, or other messaging, to your customer, automatically.
Seamless Software Integration
Biller Genie’s automated platform is meant to enhance your current invoicing process, not change it. The Genie seamlessly integrates with your preferred accounting software, such as QuickBooks, Zero, and AccountingSuite. In minutes, The Genie connects to your accounting system and synchronizes customer data which allows you to begin sending out communications right away.
Automating Your Accounts Receivable
Bill Presentment
With Biller Genie you can automatically send out invoices with your branding, electronically or using paper mail. Paper mail is an excellent tool to use when you need to escalate messaging when payment is past due. Simply select your preferred invoice template, customize your reminder schedule and let Biller Genie do the rest.
Add Late Fees
There are some customers that are repeatedly late on making payments than others. In those particular cases, getting paid on time may require some encouragement. By adding late fees to an overdue invoice, you are encouraging positive payment behavior, by adding a penalty to a late invoice. You can attach your terms and conditions to every invoice to set clear payment conditions.
Customer Portal
Your customers have a secure and easy-to-use portal, complete with your branding, where they can make payments at any time. Customers can log-in and view their invoices, along with their payment history. They can also store payments methods, such as ACH, which encourages self service, providing a convenient and memorable customer experience.
Getting Paid
Customers can make payments with a variety of payment options, which increases your chances of being paid on time. Customers can pay using credit card, or ACH at any time. For customers that require further assistance, you can even allow payment plans. Once a payment is made, Biller Genie will reconcile it back into your accounting software, closing out the invoice, reducing the time you spend on busywork.
Collect Unpaid Invoices Faster and Easier with Biller Genie
With its combination of advanced features, Biller Genie automates your entire accounts receivable process, giving you back precious time to focus on growing your business. The Genie gets subscribers paid up to 15 days faster, reduces overdue balances by 40% and reduces your administrative work by 10-20 hours per week. We wish to take away the headaches involved in accounts receivable and improve your cash flow. Click here to learn more.