Clients regularly pay late, and it’s really impacting my cash flow. Right now, I’m just using spreadsheets to keep track of everything, but I’m curious if automated invoicing makes a difference.
Have you seen any improvements in payment speed after making the switch? Also, how do you keep tabs on expenses while forecasting cash flow when income can be so spotty?
The real game changer wasn’t automated invoicing - it was switching to net 10 instead of net 30. Sounds crazy short but people actually pay faster.
I also require ACH for repeat clients now. Checks take forever and people “forget” to mail them. ACH hits automatically on the due date.
For expense tracking during bumpy cash flow, I do the opposite of most advice. Don’t forecast what might happen - just track what already happened. Every Monday I update what came in, what went out, and what’s still owed.
I keep a rolling 12-week view in my spreadsheet. Shows exactly when I’ll be tight so I can push collections harder or delay expenses.
One thing that really helped - I stopped taking clients who haggle over payment terms. If someone pushes back on net 10 or wants net 60, they’re telling you they plan to pay late. Walk away.
I just call people when they’re late. Works fine.
Automated invoicing speeds up payments, but it’s not magic. Late fees made a huge difference for me - clients actually pay on time when there’s a penalty.
I keep expenses simple. Every Friday I update one spreadsheet - takes maybe 20 minutes. Billing smaller amounts more often beats sending one big invoice monthly. Cash flow is way better.
Been there with the late payments. What actually worked for me wasn’t just automated invoicing - it was getting ruthless about follow up.
Here’s what I do:
For expenses and cash flow, I gave up trying to be fancy. One simple rule - never spend money I don’t already have in my account.
I keep three months of expenses saved because income’s unpredictable. When a big payment hits, I immediately move money into separate buckets for taxes and emergency fund before I spend it on anything else.
Forecasting is honestly just guessing most of the time. I assume every client will pay 2 weeks later than they say. Usually I’m right.
Just invoice when you’re done and keep it moving. Can’t control when people pay.
You’re not charging enough to cover late payments. I build a buffer into every quote because people always pay late. Invoice the day you finish - don’t wait. For cash flow, skip the fancy forecasting. Know your monthly burn rate and keep 90 days of expenses banked. Two late payments? They’re on prepay from now on. No exceptions. Automated invoicing helps with reminders but won’t fix flaky clients.
Automated invoicing helps, but it won’t fix late payers by itself. What actually worked for me was putting clear payment terms on every invoice and setting up auto reminders.
For cash flow, I keep it simple:
Spotty income sucks. I started asking for 50% upfront on bigger projects - that made a huge difference. Also invoice the second you finish work, not at month-end when you finally remember.
Spreadsheets work great if you actually stick with them. Usually it’s a discipline problem, not a tools problem.