Chasing invoices: how to get paid on time without feeling like a nag

Ask any Australian small business owner what their biggest source of stress is and chances are they won't say the BAS - they'll say waiting to get paid.

You did the work, you sent the invoice but that cash just isn't hitting your bank account. This isn't just an admin annoyance; it’s a cashflow crisis waiting to happen, making it harder for you to meet your own obligations like paying suppliers or that quarterly super bill.

So, how do you fix it without feeling like you're harassing your clients? The secret is to take the emotion out of the follow-up process and let your systems do the work.

Step 1: Set the Ground Rules Before the Invoice

The time to talk about money is before the job even starts.

• Be Explicit: Clearly state your payment terms on every quote and contract. Are you '7 Days from Invoice'? '14 Days'? ‘COD? Make it known.

• Don't Fear the Late Fee: It's common practice. Clearly state that overdue invoices will incur a late payment fee. You might never have to charge it but it adds necessary weight to your terms.

Step 2: Stop Being the Chaser (Use Your Software)

This is where you save yourself time and stress. Modern accounting software (like Xero or MYOB) is built to be your polite but firm debt collector.

Set up an automated follow-up sequence to manage your accounts receivable:

When: 1 Day Before Due

A friendly email notification with the invoice attached. "Just a quick heads-up that this invoice is due tomorrow”.

When: 1 Day Overdue

A firm, clear notice. "We noticed Invoice # 123 is now overdue. Please arrange payment as soon as possible”.

7 Days Overdue

A final reminder mentioning your terms. "We need to receive payment for this invoice immediately to avoid further action or late fees”.

By automating this, you remove the emotional labour. Your client gets a professional, timely reminder and you get your books cleaned up without having to make that awkward phone call.

The Bottom Line

A clean accounts receivable report is a clear view of your business's health. You're not "nagging," you're enforcing professional business terms. If you're consistently getting paid late, it’s not a bookkeeping issue - it’s a process issue. Set your rules, set your software and get back to doing the work you enjoy.

This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.