When MSP clients pay their monthly invoices late

Direct Answer to the Problem

When clients pay their monthly invoices late, the first step is to look at your billing process. Automate follow-ups for recurring invoices. This means setting up a system where each invoice is chased automatically after a set period, like 30 days. Let your clients know this will happen. You don't need new software to do this—use your existing QuickBooks Online account to set reminders and manually approve each follow-up email before it's sent. This way, you keep control of the process and avoid those awkward monthly conversations.

What Most Owners Try First

Many business owners initially try to address late payments by sending manual reminder emails or making phone calls. This approach often works temporarily but becomes unsustainable as your business and client list grow. Manual follow-ups take time away from other important tasks and still leave room for human error, like forgetting to follow up on a small invoice.

What to Do Instead

Start by setting up a consistent schedule for following up on invoices. Use QuickBooks Online to track overdue invoices and create calendar reminders for follow-ups. Draft a set of email templates that you can quickly customize for each client. Here's a simple template to get you started:

``` Subject: Friendly Reminder: Invoice Payment Due

Hi [Client's Name],

I hope this message finds you well. I wanted to remind you that invoice #[Invoice Number], dated [Invoice Date], is now overdue. We’d appreciate it if you could make the payment at your earliest convenience.

Please let us know if there are any issues or if you need a copy of the invoice.

Thank you, [Your Name] ```

Schedule these reminders for 10, 20, and 30 days past due. Always approve each message before it goes out to maintain control. This simple system ensures no invoice slips through the cracks.

How This Gets Easier with Scheduled Follow-Ups

When follow-ups run on a schedule and you approve each one, the process is smoother and more efficient. You’ll spend less time chasing payments and more time focused on growing your business. Automated reminders mean you don't have to remember every detail, but you still approve each message, keeping you in the driver's seat. This approach converts your recurring revenue into a predictable cash flow, sparing you those awkward conversations and ensuring your payroll is always covered.

FAQ

Why do my MSP clients pay late? Clients often pay late due to their own cash flow issues or simply because they forget. Automated reminders help ensure your invoices stay top-of-mind without causing friction.

Can I use ARPilot with platforms other than QuickBooks? Currently, ARPilot integrates with QuickBooks Online. If you use another platform, check if it offers similar reminder features or consider switching to QuickBooks for automated follow-up capabilities.

How can I ensure follow-up emails aren't ignored? Make your emails personal and reference specific invoice details. Use a friendly yet firm tone and offer assistance if needed. Approving each message before it sends helps maintain this personal touch.

Is there a cost to set up automated invoice follow-ups? Using QuickBooks Online, you can set reminders for free. ARPilot offers additional functionalities starting at 99 dollars a month, which may save you more in recovered invoices than the cost of the service.

What if a client disputes an invoice after I've sent a reminder? If a client disputes an invoice, pause the follow-up process and resolve the dispute promptly. Maintain open communication to address any issues, ensuring they don't affect future payments.