What is the difference between a past-due invoice, an overdue invoice, and an outstanding invoice?įrom the time that you send an invoice to the time that it’s paid, it’s considered an outstanding invoice. Past-due invoice is just a label you place on an invoice when the circumstances demand it - a label that can be very useful when monitoring your company’s financial performance, because you need to know what you’re still owed. Regardless, this isn’t a special type of invoice. Look for some example invoices - or businesses creating invoice templates - to build up a basic understanding. If you’re completely new to the freelancing world (or you’ve only done informal projects with cash payments) then you should get familiar with the format. It should also have an outline of the penalties the client will incur by failing to meet those terms: you may charge a certain sum for each week after the due date with no payment, or even reserve the right to stop all work for that client with no notice. What is a past-due invoice?Īs I noted in the intro, a past-due invoice is an invoice that was sent out to a client but hasn’t been paid past the due date.Īn invoice will usually involve a summary of the charges, a list of payment options, and a set of terms detailing when and how the payment should be made. We’ll also set out some example scripts to use in order to effectively get paid for your past-due invoices as quickly as possible. They worry about being too forceful, or too agreeable - too passive, or too proactive. When something has gone wrong, someone desperately needs to right the ship.įor most people, though, past-due invoices can be extremely delicate matter to approach. You need emergency fallbacks for when those clients don’t seem overly eager to justify their sluggish response times. In the end, you need to chase the clients responsible. If you’re a freelancer, then there’s an excellent chance that you’ve had your difficulties with a past-due invoice-most likely on far too many occasions. Unfortunately, despite all of this, late payments remain quite common across all disciplines and fields. With the proliferation of easy online payment tools, how is it freelancers still have to battle with past-due invoices? They need only to dig up the past-due invoice, pay it using whatever payment method they prefer, and move on. What’s more, it shouldn’t be that hard for a client to pay what they owe. You’ve reached an agreement, and done the work. It’s the principle of the matter that really grates. There are plenty of things in the business world that are more frustrating than dealing with a past-due invoice, but few that are more irritating. What is the difference between a past-due invoice, an overdue invoice, and an outstanding invoice?.
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