Now, keep in mind to only go for this approach if it’s sensible in terms of the price of the purchase. Worried you won’t get paid on time? Consider requesting a partial advance deposit as a safety net. It’s always best to think long term: the small fee of integrating credit card payments will cost way less than having to hire an attorney or taking up your late bills to court in the future. Opening up to as many payment options as possible gives your clientele more reason to pay you back right on schedule. Some clients prefer paying by cash, check, or online payment systems, while others would rather go for a direct bank deposit. The good news: there are certain actions you can take, to lower your chances of getting these late payments. The bad news: some clients will pay you late. How to Get Paid on Time for Outstanding Invoices That’s why it’s so important to track outstanding invoices properly, so they don’t become past due in the future. So in short, an outstanding invoice turns into a past due one when payment is late. Now a past due invoice is also an unpaid invoice, but it refers to an invoice that has passed its payment deadline. Outstanding invoices and past due invoices are often used interchangeably, but actually, these words mean two separate things.Īn outstanding invoice, as previously mentioned, is used when an invoice has been delivered, is waiting to get paid, but the payment due date has not come yet. Difference Between Outstanding and Past Due Invoices During the days that the buyer has not yet sent the cash, the invoice is referred to as an outstanding invoice. Payment terms dictate when the client is required to pay back the business.įor example, a payment term of net-30 means that the buyer has 30 calendar days to pay for the products and services they purchased. The time period it remains outstanding depends on the payment terms of the invoice. Track Outstanding Invoices with Accounting SoftwareĪn outstanding invoice is a term used for a sales invoice that has been sent to a client and is now waiting to get paid.How to Get Paid on Time for Outstanding Invoices. In this guide, we will be explaining these precautious actions you can take, along with any other questions you might have regarding outstanding invoices. If you’ve ever had the unfortunate luck of dealing with unreliable clients, you’ve probably dealt with cases where an outstanding payment has become overdue.Īs frustrating as that situation may be, there are some measures you can take to prevent outstanding invoices from turning into bad debt. When you issue an invoice and are on the wait for payment, this invoice is referred to as an outstanding invoice.
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