How do you track overdue payments from clients effectively?

Late payments have become a real hassle lately.

I typically rely on a spreadsheet to mark invoices, but I often forget to follow up until it’s too late. I’m looking for a solution to better track who owes what and when I should reach out.

Automated follow up emails work way better than manual tracking. Most invoicing software lets you set these up to go out automatically.

Here’s what I do:

  • Send first reminder 5 days after due date
  • Second reminder at 15 days
  • Final notice at 30 days with project suspension warning

The key is making it automatic so you don’t have to remember anything. I used to chase payments like crazy but now the system does it for me.

Also started asking new clients about their payment process during onboarding. Some companies have weird approval chains that take forever. Knowing this upfront helps set realistic expectations.

One thing that surprised me was how many clients actually appreciated the reminders. Turns out they just forgot or the invoice got buried in email.

I just call them after a week or two.

Set calendar reminders for each invoice you send. I add one reminder 3 days before the due date and another 7 days after.

This really cut down my stress since I wasn’t scrambling to remember who owes what.

I also included a note in my invoices: “Payment due in 30 days, late fee of 2% applies after that.” Most clients pay on time now because they know there’s a consequence.

For clients who are always late, I switched to upfront payments or 50% deposits. Lost a few clients but my cash flow improved.

I put a simple note in my phone for each invoice with the due date and check it every Monday morning.

When something is overdue, I send a quick email asking when they plan to pay. Most clients respond within a day or two with either payment or an explanation.

For repeat offenders, I just require payment upfront now. Saves me from having to chase anyone down.

I just stop doing work for them until they pay up. Pretty simple.