A past-due invoice is a billing document issued by a business or service provider to a customer who has not made payment by the original due date. When an invoice becomes past-due, it indicates the payment terms specified (such as Net 15 or Net 30) have lapsed, and immediate attention is required to settle the outstanding balance.
Handling past-due invoices proactively is essential to maintaining healthy cash flow and ensuring business sustainability. Late payments often disrupt financial operations and complicate budgeting processes, making it crucial for both service providers and customers to address overdue payments promptly.
Once you discover a past-due invoice, it's good practice to reach out courteously to remind the customer of the outstanding balance, clearly listing the invoice number, original due date, detailed charges, and available payment methods. Early and consistent communication typically increases the likelihood of quick resolution.
Additionally, consider regularly updating invoicing processes to minimize payment delinquency, thus reducing the incidence of past-due invoices. If non-payment issues persist, businesses might employ stronger measures such as adding late-payment fees or partnering with collection agencies.
For a deeper understanding of managing and preventing overdue payments, check out this practical guide from QuickBooks: How to Follow Up on Past Due Invoices.
