Is chasing invoices part of bookkeeping?

Direct Answer to the Question

Chasing invoices is not part of bookkeeping. Bookkeeping is about tracking financial transactions, while chasing invoices involves actively following up with customers to ensure payments are received. They're two separate roles with different responsibilities. If you're finding yourself doing both, it might be time to draw a line and delegate the follow-up part.

What Most Owners Try First, and Why It Stops Working

Most business owners start by doing everything themselves, including chasing unpaid invoices. You might send a few reminder emails or make a couple of calls. Initially, this might seem manageable, especially if you have just a handful of invoices. But as your business grows, so does the number of unpaid invoices and the time it takes to follow up on each one. Eventually, you'll find that you're spending more time trying to get paid than focusing on your actual business.

What to Do Instead

Start by setting clear expectations with your customers from the get-go about payment terms. Then, create a consistent process for following up on late payments. Here's one way to do it:

• Send a Reminder: A week before the due date, send a friendly reminder about the upcoming payment.
• First Follow-Up: If the invoice becomes overdue, send a polite email the day after the due date.
• Second Follow-Up: One week later, if there's still no payment, send a firmer email and mention any late fees that apply.
• Final Notice: Two weeks overdue, pick up the phone and have a direct conversation.

How This Gets Easier When the Follow-Up Runs on a Schedule

When you have a system in place, chasing overdue invoices becomes much less of a headache. With a tool like ARPilot, you get a schedule that automates these follow-ups, sending reminders and escalating the communication as needed. The best part? Every message waits for your approval before it goes out. This means you can ensure every communication is just right and reflects your business's tone. You stay in control while saving loads of time.

FAQ

What's the difference between bookkeeping and chasing invoices?

Bookkeeping is about recording your financial transactions. Chasing invoices is about following up on those transactions to make sure you're actually paid.

Can I automate the invoice chasing process?

Yes, with tools like ARPilot, you can automate the process while still keeping control. Follow-ups are scheduled, but you approve every message before it goes out.

Why does chasing invoices take so much time?

Because it involves more than just sending a couple of emails. It requires tracking who owes you money, sending reminders, and sometimes negotiating payment plans.

Is there a way to make chasing invoices less awkward?

Absolutely. Setting clear expectations from the start and having a consistent follow-up process can make the whole thing less stressful. Automated tools can handle the bulk of the follow-up so you can focus on other tasks.

How can I keep track of payments and follow-ups without extra work?

Using a system like ARPilot that integrates with QuickBooks Online can help. It logs all outreach and responses, so you have a clear record without lifting a finger.