{"id":7144,"date":"2020-09-10T19:24:05","date_gmt":"2020-09-10T23:24:05","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=7144"},"modified":"2026-01-16T05:15:17","modified_gmt":"2026-01-16T10:15:17","slug":"8-ways-to-get-invoices-paid-without-any-awkward-conversations","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/8-ways-to-get-invoices-paid-without-any-awkward-conversations\/","title":{"rendered":"8 ways to get invoices paid without any awkward conversations"},"content":{"rendered":"
\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
\n\t\t\t\t\t

\n\t\t\t\t\t\t8 ways to get invoices paid without any awkward conversations\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t

\n\t\t
\n\t\t\t
\n\t\t\t
\n\t\t\t\n\t\t
\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tOwen Sweeney<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n\n\n

How long does it take for your customers to process your invoices and pay for your goods or services?  <\/span>And how many awkward conversations do you have to have along the way? <\/span>It\u2019s estimated that around 350 billion invoices are issued around the world each year.<\/span><\/p>\n\n\n\n

Sage\u2019s own research reports that more than 1 in 10 are paid late. The research also found that across the world, the most common excuse given for late payments is\u2026 no reason at all.<\/p>\n\n\n\n

How to avoid difficult conversations<\/h2>\n\n\n\n

As any business owner or finance professional knows, this can lead to tricky and often awkward phone calls or emails when a payment is overdue.<\/p>\n\n\n\n

According to the same Sage research, for most businesses the biggest barrier to chasing payments is protecting the relationship with the customer or client.<\/p>\n\n\n\n

\u201cIt\u2019s difficult for small businesses to chase invoices,\u201d says Sue Keogh, owner of Sookio<\/a>, an award-winning digital marketing agency.<\/p>\n\n\n\n

\u201cWhen my business was smaller, somebody defaulted on an invoice for a lot of money. And I still haven\u2019t received it. I\u2019ve told my team that if ever I get the money then we\u2019ll go off to an expensive hotel and drink Champagne all day.\u201d<\/p>\n\n\n\n

The worst aspect was that chasing the invoice took her away from her business. She says: \u201cI took them to court. It was mentally draining. This is why it\u2019s good to avoid these things happening in the first place.\u201d<\/p>\n\n\n\n

There are ways to sail the choppy waters of invoice payments for smaller businesses. Below are eight tips that should make those awkward conversations easier to navigate \u2013 or possibly remove the possibility of them ever arising in the first place.<\/p>\n\n\n\n

1. Create an \u201caccounts@\u201d email address<\/h2>\n\n\n\n

Most tips below revolve around a simple concept: use a professional mindset and approach when dealing with your business finances. Sometimes this can mean separating it from your day-to-day activities.<\/p>\n\n\n\n

Most larger businesses have a separate credit control department. Why not emulate this?<\/p>\n\n\n\n

OK, so your business might consist of only a few people (or just yourself), but you can set up an email address such as invoicing@example.com or accounts@example.com to give the impression you have a separate section of your business devoted to your finances.<\/p>\n\n\n\n

\u201cThis means you can continue your nice cozy relationship with the client via your usual email address,\u201d says Keogh.<\/p>\n\n\n\n

\u201cAnd use your invoicing or accounts address for strict finance discussion.<\/p>\n\n\n\n

\u201cI\u2019ve even heard of some businesses creating a fictional accounts person to use in the signature of that email account.<\/p>\n\n\n\n

\u201cBut in any event, when using this email account, you should always write in the style of somebody in charge of finances and thereby keep things professional.\u201d<\/p>\n\n\n\n

Additional email addresses are easy to set up, and in most cases are free to operate. If you don\u2019t know how to do so, speak to your internet service provider.<\/p>\n\n\n\n

Most email clients such as Microsoft Outlook can be set up with more than one email account \u2013 but you should take care to select the right one each time.<\/p>\n\n\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t\t

Free Interactive Guide: Manage your cashflow and keep customers happy<\/h2>\n\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t

Learn how to stay on top of your cash, get your invoices paid all without sacrificing your customer service<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tAccess the interactive guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"Woman\t\t\t<\/div>\n<\/div>\n\n\n\n

2. Know who\u2019s who \u2013 and who controls payments<\/h2>\n\n\n\n

It might seem sensible to invoice the individual who requested your services. But this can introduce delays.<\/p>\n\n\n\n

They might sit on the invoice for a while before passing it to their manager, who then sits on it, before passing it to accounts payable.<\/p>\n\n\n\n

And if there\u2019s then a query with the invoice, it might be returned to you at that point \u2013 making you reissue the invoice and go through this waiting period all over again.<\/p>\n\n\n\n

\u201cRight at the start find out who handles paying invoices at the business,\u201d says Keogh, adding that this is about more than simple expediency: \u201cYou want a good relationship with the person you\u2019re working with.<\/p>\n\n\n\n

\u201cBut handling invoices isn\u2019t their highest priority. By discovering the processes of the business your work for, you\u2019re removing any potential for friction. You make life easier for both them and you.\u201d<\/p>\n\n\n\n

Having this conversation can be intimidating, especially for smaller businesses. But doing so as early as possible when you start with a new customer or client gets it out of the way, and can be incorporated into general questions about the work you\u2019re doing.<\/p>\n\n\n\n

\u201cDon\u2019t hold back,\u201d advises Keogh. \u201cIf an invoice isn\u2019t paid on time, you\u2019re bankrolling somebody else\u2019s business. And that isn\u2019t fair.\u201d<\/p>\n\n\n\n

3. Sync with payment runs<\/h2>\n\n\n\n

As part of your inquiries discussed earlier, try to find out when the business undertakes payment runs.<\/p>\n\n\n\n

Some smaller businesses might process invoices on an as-needed basis, but larger businesses are likely to do so only once a month. This introduces delays because once invoices are processed, that\u2019s when they apply their 30-day terms.<\/p>\n\n\n\n

Something as simple as dating an invoice in the previous month can mean you don\u2019t have to wait as long for payment.<\/p>\n\n\n\n

For example, if you\u2019re sending out an invoice on 1 June, and use that as the date, then the invoice might not get paid until late July \u2013 it will be processed as part of June\u2019s payment run, and then paid once the terms are complete in July.<\/p>\n\n\n\n

However, if you date the invoice 30 May then the business will probably process it as part of May\u2019s payment run, which might mean payment arrives in June.<\/p>\n\n\n\n

This trick can also influence when you should chase an invoice.<\/p>\n\n\n\n

\u201cI find large businesses often do a payment run on a Friday,\u201d says Keogh. \u201cSo, it makes sense to chase an invoice at the beginning of the week, so you\u2019re well in time.\u201d<\/p>\n\n\n\n

The payment run is often set to run automatically on Friday, often in the absence of staff responsible for it, so chasing any later in the week runs the risk of not only missing out on the run but also being unable to contact people who may be out of the office for various reasons.<\/p>\n\n\n\n

4. Invoice immediately<\/h2>\n\n\n\n

If you take your time issuing an invoice, you send an implicit message to the customer or client that you don\u2019t consider timely payment to be important either.<\/p>\n\n\n\n

\u201cPeople look for any excuse to wriggle out of paying an invoice,\u201d says Keogh. \u201cIf you invoice late, they\u2019ll put your invoice at the bottom of the pile, with the belief they don\u2019t need to pay it soon.\u201d<\/p>\n\n\n\n

Sending an invoice late certainly won\u2019t give you the strongest position should there be a requirement to contact the customer or client and chase the payment.<\/p>\n\n\n\n

Issuing an invoice later rather than earlier can also create confusion for the customer or client, in that the time that\u2019s elapsed might mean it\u2019s not obvious what the invoice relates to.<\/p>\n\n\n\n

The person controlling the purse strings may have to investigate, which adds yet more potential for delay until the payment is issued.<\/p>\n\n\n\n

How soon should you send an invoice? Try immediately.<\/p>\n\n\n\n

If you use a modern accounting software<\/a> solution complete with a mobile app, you can even do this in front of the client.<\/p>\n\n\n\n

Just completed a job or handed over some stock? Create and send the invoice there and then using a phone or tablet, and make sure the customer or client knows you\u2019ve done so.<\/p>\n\n\n\n

Following this, there can be no ambiguity about whether they received the invoice should you need to chase it up.<\/p>\n\n\n\n

5. Offer many ways to pay<\/h2>\n\n\n\n

This point is a total no-brainer in the modern day and age. Any invoice your business issues must offer as many payment options as possible.<\/p>\n\n\n\n

Try including credit card, debit card, bank transfer, PayPal, or even technologies such as Apple Pay or Google Pay. All should be offered in addition to the age-old methods of posting a cheque or arranging a bank transfer.<\/p>\n\n\n\n

\u201cBecause of the coronavirus disruption, people are just a bit more open to doing things differently now,\u201d says Keogh. \u201cBut make sure you mention on the invoice the ways they can pay.<\/p>\n\n\n\n

\u201cIf it\u2019s an electronic invoice, that\u2019s as simple as providing a link.\u201d<\/p>\n\n\n\n

If you use modern accounting methods, your accounting software should let you include a \u2018Pay Now\u2019 button in the email invoice that lets the recipient settle the invoice with just a few clicks.<\/p>\n\n\n\n

This makes it as convenient as possible for your client or customer to settle the invoice, thereby eradicating the potential for procrastination.<\/p>\n\n\n\n

Should you find yourself having to chase the payment, any awkward conversations are lessened if you can demonstrate how you\u2019ve tried hard to make it as easy as possible for your client or customer to make their payment.<\/p>\n\n\n\n

Even business-to-business (B2B) companies, some of which still rely largely on cheques or BACS, are coming around to the idea of paying electronically via more contemporary methods.<\/p>\n\n\n\n

Always ensuring your invoices offer this option is surely a step in the right direction.<\/p>\n\n\n\n

Depending on the amount of the invoice, offering a variety of payment methods means it might even be possible for the person who authorised the purchase to pay it as an expenses claim.<\/p>\n\n\n\n

This removes the need for the finance department to get immediately involved, which therefore removes further potential delays.<\/p>\n\n\n\n

6. Know when invoices are read<\/h2>\n\n\n\n

A cutting-edge feature in accounting software shows a document timeline for invoices. As well as showing exactly when you sent the invoice, it lets you know when invoices have been viewed by the recipient.<\/p>\n\n\n\n

This works in a similar fashion to the way some email applications let you know when an email has been opened by the recipient. You\u2019re even informed of the time and date the invoice was viewed.<\/p>\n\n\n\n

\u201cThe earlier your business can implement something like this, the better it will be,\u201d says Keogh. \u201cSome small businesses put it off, thinking that they\u2019re not yet big enough for this kind of accounts software. It will pay for itself quickly by reducing admin time.\u201d<\/p>\n\n\n\n

Document timelines can really help you during awkward conversations if the invoice requires chasing. If the client or customer says they didn\u2019t receive it, you can explain not only that they did indeed receive it, but even tell them exactly when they did.<\/p>\n\n\n\n

The fact that you can demonstrate the length of time since they became aware of the invoice should encourage them to settle it sooner rather than later because both you and they are aware the clock started ticking at that point.<\/p>\n\n\n\n

Additionally, now they know your invoices can be tracked<\/a> in this way, they\u2019re less likely to delay paying them in the future.<\/p>\n\n\n\n

\u201cI haven\u2019t used a paper invoice for about six years,\u201d adds Keogh. \u201cBack then, I would create them in a Microsoft Word document and then manually add it to my accounting software. But if somebody queried an invoice and I amended the document, I wouldn\u2019t have a paper trail. I\u2019d have to waste time looking through emails.\u201d<\/p>\n\n\n\n

7. Make invoices clear, accurate and attractive<\/h2>\n\n\n\n

There\u2019s a handful of details that must be included on an invoice<\/a> but, beyond this, a clear and presentable invoice is something that demands action on behalf of the recipient.<\/p>\n\n\n\n

The more professional the invoice looks<\/a>, the more professional a response it\u2019s likely to engender in the recipient \u2013 and this means the invoice is more likely to be paid on time.<\/p>\n\n\n\n

All of us are unaware of subconscious cues that dictate our actions and in our professional lives, we tend to respond to professionalism with our own level of professionalism.<\/p>\n\n\n\n

Ensure you provide the information you have to on the invoice, but make sure any information the customer or client requires is also included, such as:<\/p>\n\n\n\n