Tuesday, May 4, 2021

How B2B Companies Can Track Their Unpaid Invoices

Are you a B2B company manager who wants to track his or her unpaid invoice? If yes then you are definitely at the right place. As business owners, we can sometimes fail or even forget about the invoices we made earlier.

It’s dreadful right? It doesn’t have to be like each and every time the good news: In this guide, we will be taking you through steps you need to follow in order to track your unpaid invoices.

What is an invoice?

An invoice is simply a list of goods or services with a statement that sums the due bills. It’s also responsible for establishing obligations on the clients’ part to pay for products and services.

For B2B companies, invoices are assumed to be essential since they are used as documents that make it possible for the companies to get paid for their respective services.

If a company does not know how to make an invoice, using invoice templates is highly recommended. Invoice templates can save time, in addition to preventing the company from repopulating similar information whenever new invoices are being made.

If the company is more advance, it can consider using invoice software since this will make work easier for them.

For the B2B businesses, invoices are known for serving a significant purpose; the company sends them and the client receives them. It assists in expediting the payment process; this is achieved by notifying the client that the payment is due.

For customers, with itemized details, invoices give a well-organized record of expenses, in addition to assisting with record keeping.

Tracking Unpaid Invoices

Are you a B2B company that finds it overwhelming to collect your unpaid invoice right? It needs to get a solution to help B2B companies track their unpaid invoices.

As a company, it is important to ensure that you get paid for all your products and services. You can be doing the best work, though you need to be organized.

The company should be in a position of streamlining your workflow since it is through this that the business will run effectively.

If you can track the unpaid invoices, you will find it easier to organize your client database. You will keep good records of invoices and do follow up for those that have not been paid.

This will make your company look professional in addition to ensuring that you do not start, from scratch, to make new invoices for the same clients. 

With organized invoices, it will be easier for you to be punctually paid for your products and services each month. Moreover, it is through this that your clients will get various options of making payment for your services as quickly as possible.

Some will use checks to pay you while others will prefer cash or wire transfer. Nevertheless, this depends on the agreement made between the client and the company. Therefore, if the company cannot track the unpaid invoices, it is likely to experience several losses.  

Factors to Consider When Tracking Unpaid Invoice

These are some of the things that you need to do:

1. Email them 2 (business days) after the due date

You simply need to send a reminder to your customers that will clearly contain the relevant information concerning the payment issues. Remember you need to confirm the specific payment date before emailing your customers.

Take a look at this template for your guidance subject-it should entail your company name, the overdue amount and the customer name body-kindly greet your customer and tell them the information they need to know concerning the payment process.

2. Email them after 8 business days 

At this level, you might have been alerted by your customers. In either way maybe they forgot to process your payment.

Similarly, it’s likely that your first payment reminder must have been dumped in your customer’s contact inbox. It’s highly recommendable to include a strong subject line followed by quality content.

Take a look at the following template:

Subject – should contain reminder, your company’s name, and the overdue amount

Body – should contain the contacts name and the relevant information required 

3. What about a call 15 business days later?

This is the point where you should have received payment or the confirmation of the payment. I highly recommend you involve the customer’s account manager then immediately ask them to call the customer.

It won’t be in vain since approximately 90% of B2B companies always pick up their phones with the aim of collecting their past due invoices.

4. Email them after 20 business days 

This is the point where you need to stand firm. Why? There’s a possibility that a commitment was made last time but you still have not been informed.

It’s recommended to check your customer’s account manager and the buyer they dealt with in relation to your customer’s finance. Be aware that these overdue payments related to your company.

5. Try out snail mail letters after 25 business days

Although snail mail letters are rarely used nowadays, they should not be that necessary. However, if you are one committed person who knows his or her goals deeply, then it is worth it.

When everything is done appropriately when it comes to tracking unpaid invoices, it becomes possible for the company to experience tremendous positive change as far as having an accurate picture of where their money is coming from is concerned. 

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