What is Past Due Invoice, and How Can You Automate It Using Invoice Automation Software?

Well, we know that you have done all the hard and smart work to complete that big project. But, unfortunately, it is 4 days past the due date, and you have not received your payment. But to keep your cash flow healthy, you end up chasing your clients. So, what is the possible solution for this?

Well, you can make invoices Online with automated invoicing software. We totally understand that asking for money is not an easy thing to do, but luckily there are methods to make the process easy and make your customers pay you in a timely manner. And one such method is downloading the online billing software for small businesses.

Not only does automated invoicing software expedite payment processes, but you can also use it to manage company’s accounting for free.

What Is a Past Due Invoice?

With every invoice, there comes a specific set of terms that a vendor and buyer have to follow. For example, if your payment is late, that particular invoice is termed as a past due invoice. Simply put, it is just adding a label to the invoice if a buyer has not paid you on time.

You can easily make an invoice online with automated invoicing software and mark it as a past due invoice. Subsequently, you will be able to save the headache of chasing clients and staying cash flow positive.

Outstanding Vs Past Due Invoice

Outstanding invoices and past due invoices are used commonly. But, they have slightly different meanings. The former means that your buyer is yet to pay you, but you have not given them a due date. Whereas, past due invoice means the concerned buyer has delayed your payment.

Now that you know about these invoices, let us see how to deal with such invoices and manage the company’s accounting for free using the online billing software for small businesses.

How to Sort Past Due Invoices?

A common way to deal with delays is to send a reminder. However, in case your notices don’t work, you might resort to legal action. Let us find out why these methods are appropriate and can let you handle cases of late payments.

1. Invoice Accurately

Before you try to take any legal action to recover your payment, make sure your invoice is correct, and you have sent it to the right client and have the correct details.

Invoices can be easily created on your phone too by downloading a free cloud-based accounting software.

Double-check on any inconsistencies, postal and email addresses, and the payment due date. Do a thorough analysis if you mentioned the right address. As these issues are common, you need not worry as these issues can be sorted out with a short apology note. Besides, you can even directly contact your customer and explain the problem. The next step is to resend the correct invoice.

2. Send the First Reminder By Email

You’reYou’re probably wondering: how long should I wait before sending a past due invoice email?

Now, comes the famous question? When should you send the first reminder? Well, you can send one after you are sure that there are no issues with your invoice. This will come in handy for a client who frequently delays your payments.

However, if it is a regular client, you can consider giving them 2-3 days.

Make Invoice Online with Automated Invoicing Software

If you are tired of chasing your past due invoice, you can use automated invoicing software to automate the process and make sure you never miss a payment again.

These tools will send your clients reminders and notifications when your invoice is past its due date. Besides, you can even use it to set up recurring invoices and even get advance deposits. In this manner, you will stay on top of your payments, expenses, and bills.

If you want to review your invoices and manage outstanding payments, you can head over to the Deskera Sell dashboard.

What’s more? These tools help you centralize all information and create invoices in just a few clicks. You can also use it to manage a company’s accounting for free. Access these tools as per your comfort and from your tablet, desktop, or mobile.

Wrapping Up

This post was about how you can make invoices online with automated invoicing software and manage the company’s accounting for free. Not only will it help you slay your business objectives, but it will also help you streamline your finances using the free cloud-based accounting software.