{"id":12577,"date":"2024-07-20T18:06:58","date_gmt":"2024-07-20T17:06:58","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=12577"},"modified":"2024-07-31T08:24:05","modified_gmt":"2024-07-31T07:24:05","slug":"how-to-deal-with-unpaid-invoices","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/how-to-deal-with-unpaid-invoices\/","title":{"rendered":"How to deal with unpaid invoices"},"content":{"rendered":"

An unpaid invoice can have a severe impact on your business. If you don’t get paid on time for the goods and services you provide, your cash flow is disrupted, and your administrative burden increases. And, let\u2019s face it, you need to have an awkward conversation or two with non-paying client.\u00a0<\/span><\/p>\n

Unfortunately, late payments are more common than you might think. According to the accounting platform <\/span>QuickBooks<\/span><\/a>, over 70% of small to medium-sized enterprises (SMEs) were negatively impacted by unpaid invoices in 2023.\u00a0<\/span><\/p>\n

But what exactly happens when a client doesn\u2019t pay you on time? Keep reading to find out how best to deal with unpaid invoices.<\/span><\/p>\n

Check that you’ve prepared the invoice correctly<\/h3>\n

Before jumping to conclusions, double-check that you did your part and prepared the invoice correctly. If there are any mistakes or omissions on the invoice in question, this could delay the payment, or make the recipient unable to pay altogether.\u00a0<\/span><\/p>\n

If you have made an error, don\u2019t assume the recipient will actively reach out and tell you. Maybe they hadn\u2019t noticed either, maybe they\u2019re busy, or maybe they\u2019re just trying to avoid paying. Either way, in the first instance, check that you\u2019ve prepared the invoice correctly.\u00a0<\/span><\/p>\n

To whom is the unpaid invoice addressed?<\/h4>\n

First, make sure you\u2019ve addressed the invoice to the correct person. The person or company you\u2019ve performed a service for might not necessarily be the one who pays you.\u00a0<\/span><\/p>\n

For example, if you\u2019ve done marketing work for Mr Smith in Company A Limited, you might need to address the invoice to the accounting department, rather than Mr Smith himself. As a result, he may have forgotten to forward the unpaid invoice, or even failed to realise that he had received it at all, leaving it forever lost in his in-tray.\u00a0<\/span><\/p>\n

If you are unsure how to address the invoice, contact the client and double-check. This will allow you to send it to the correct person and avoid delays.\u00a0<\/span><\/p>\n

Have you included all of the right information?<\/h4>\n

Missing important details, or making a mistake on an invoice, could mean the recipient cannot pay you. So, check that you\u2019ve included all the necessary details and haven\u2019t made any errors. As a minimum, the invoice should include:<\/span><\/p>\n