A simple routine for getting paid on time

A simple routine to get paid on time

Most late payment is not a refusal to pay. It is an invoice that was unclear, sent late, sent to the wrong person, or forgotten. A small, repeatable routine fixes most of that. This one has five steps.

1. Agree the terms before the work. On the quote, state the deposit, any stage payments and when the balance is due, in words the customer can check.
2. Invoice when the stage is done. Use the same layout every time: your business name, the customer, the job, the invoice number, the date, the due date, the lines, the Tax A and Tax B lines you typed from the official source, the total, and how to pay.
3. Send it to the right person. Ask at the start who should receive the invoice, and keep that name and email in your records.
4. Keep one list of unpaid invoices, with customer, amount, date issued and due date. Look at it on the same day each week, and mark invoices paid when the money arrives.
5. Follow up in a set pattern: a friendly check before the due date, a short reminder on the due date, a second reminder that asks for a payment date, and a final notice that states the amount and due date.

Worked example: a staged kitchen job (made-up figures)

A $5,000 job before Tax A and Tax B is split into a $1,000 deposit to book, $2,000 after rough-in and $2,000 on completion. Each invoice goes out when its stage is done, with the due date written on it.

The customer's partner pays the bills, so you add their name to your records. The due date passes with no payment. You send the short reminder, then the second reminder asking for a date. The customer replies with a date and pays. You mark it paid. Nothing dramatic happened. The routine did the work.

Keep wording short and calm

Keep each message short, polite and factual, and do not threaten. If you stated a late fee in advance, repeat it exactly as it was on the quote. What you do after a final notice depends on the amount, your contract and your province, so ask your accountant or a legal professional. Customers who pay late often hire you again, and a calm routine protects the money without ending the relationship.

Back up each invoice line. Log your hours in the timesheet and your materials, trips and other costs in the expense and mileage log, so every line on your invoice has a record behind it.