Every business has an overdue account. Few draw first.
There are two kinds of business: those that chase invoices systematically, and those that fund their customers for free. Here's how to be the first kind.
Every dollar sitting in an overdue invoice is a dollar you earned, delivered on and can't spend. Accounts receivable is where profit goes to wait — and where too many good businesses quietly bleed cash while staying too polite to say anything.
The real cost of late payers
Late payment isn't just annoying; it's expensive. It forces you to fund your own operations while your customers hold your money. Left unmanaged, it pushes otherwise-profitable businesses into overdrafts, missed BAS payments and stress.
Build a chasing system
- 1Invoice the moment work is done, with clear due dates and payment methods
- 2Send an automatic reminder before the due date, not just after
- 3Follow a fixed cadence of reminders — friendly, firm, final
- 4Escalate consistently so nobody learns that ignoring you works
Systems beat awkwardness
The reason invoices go unchased is usually discomfort, not laziness. A documented, automated process removes the emotion — the system chases, not you.
Preventing late payment
- Agree payment terms in writing before you start work
- Offer easy, instant payment options
- Consider deposits or progress payments for larger jobs
- Track your debtor days so you know the trend, not just the anecdotes
Sources & further reading
This guide is general information for Australian businesses and is not personal tax, legal or financial advice. For advice specific to your circumstances, speak to a registered tax agent, accountant or the relevant authority.
Frequently asked
Quick answers.
- How soon should I chase an overdue invoice?
- The moment it's overdue — and ideally with a friendly reminder just before the due date. Consistency matters more than aggression.
- Can a bookkeeper manage receivables for me?
- Yes. A good bookkeeper can run your entire reminder cadence, keep your debtor ledger clean and flag problem accounts before they become bad debts.
Ready when you are
See what SQEZE can do for your business.
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