Chasing clients for overdue payments is one of the most frustrating parts of running an accounting or bookkeeping firm. You’ve delivered a service, sent the invoice, and now… silence.
It’s a scenario that plays out far too often. You follow up once, maybe twice, and still hear nothing. Do you send another email? Pick up the phone? Or do you wait and hope the client eventually gets around to it? Meanwhile, the clock is ticking, and your patience—and cash flow—starts wearing thin. Late payments can have a serious impact on cash flow , taking up valuable time that could be spent on growing your business instead.
So how can firms reduce the stress of chasing invoices and ensure payments come in on time, every time ?
In a recent webinar, Laura Day-Henderson , founder of More Than Bookkeeping Ltd , and Lenah Oduor , accountant and business coach at GHawk Accounting , shared their tried-and-tested strategies for tackling overdue invoices and making the payment process seamless for clients .
Here’s what we learned.
Why do clients delay payments? Before you can fix the problem, you need to understand why clients don’t pay on time. According to Laura and Lenah, the most common reasons are:
1. Clients don’t see the invoice "Most business owners don’t even own a computer or laptop. They’re too busy working on building sites, in retail shops, or running their businesses, and emails get lost in spam or buried under hundreds of others." — Laura Day-Henderson
2. No clear expectations from the start "It’s really important when you start a relationship with a new client to be very clear about when the invoices will be sent, how payments should be made, and what happens if payment is late." — Lenah Oduor
3. The payment process is too complicated "If a lawyer sent me an invoice with a simple 'click to pay' option, I’d do it instantly. Instead, I have to log in, type in numbers, and go through a manual bank transfer. That’s why payments get delayed." — Webinar Host
4. Clients simply forget "Forgetfulness is the biggest reason clients don’t pay on time. Most people value their accountants and bookkeepers, but they’re busy, and if they don’t get reminders, they’ll forget." — Lenah Oduor
Strategies to get paid faster (without chasing!) 1. Use automated payment reminders Instead of sending awkward emails or chasing clients manually, let automation do the work for you.
"Automated reminders are a godsend. A quick message before the due date, on the due date, and after the due date means clients always know what’s coming." — Lenah Oduor
Reminders can be sent via email, WhatsApp, SMS, or even automated phone calls . The key is to choose the method that your clients actually use .
"WhatsApp is way more effective than email. You can see if it’s been delivered, read, and when the person was last active." — Laura Day-Henderson
Additionally, using personalised reminder messages can help maintain a professional but friendly tone. Some firms even include a discount for early payment or a late fee warning to encourage clients to act quickly.
2. Agree on payment terms during onboarding Many accountants and bookkeepers assume clients know when and how to pay. Instead, make it part of the onboarding process .
"We outline our payment terms during onboarding: invoices go out on the 25th, and payments are due on the 1st. We agree in advance if a client needs different terms, so there are no surprises." — Lenah Oduor
By setting expectations from day one, you reduce uncertainty and ensure that clients are prepared for upcoming payments.
Having a signed service agreement that details payment expectations, penalties for late payments, and preferred payment methods can help avoid disputes in the future.
3. Make payments ridiculously easy If paying your invoice requires effort, clients will put it off.
"If I could click a button and pay instantly, I’d do it. But if I have to go into my banking app, find the invoice, type in the details, and manually transfer, I’ll put it off." — Webinar Host
Using payment solutions that offer instant card payments, Apple Pay, Google Pay, or Direct Debit can drastically reduce delays.
"The best feature for me is sending an invoice with a ‘Pay Now’ button. Clients can pay by card, bank transfer, or Direct Debit straight from their phone. It’s made a huge difference in getting paid on time." — Lenah Oduor
Some firms also use QR codes on invoices that take clients directly to a secure payment page, removing barriers to action.
4. Offer flexible payment plans For larger invoices, some clients might struggle with cash flow. Instead of waiting for late payments, offer them split payment options .
"Some clients prefer to pay in instalments. Instead of sending 12 invoices, we send one annual invoice and allow them to pay in small chunks throughout the year." — Lenah Oduor
This not only helps clients manage their cash flow but also creates predictable income for your firm.
Additionally, introducing a subscription-based pricing model for recurring services can ensure payments come in on time without the need for constant follow-ups.
5. Use AI and automation for credit control Instead of manually chasing payments, firms can use AI-driven tools to handle collections without damaging client relationships .
"We’ve tested AI making phone calls on behalf of firms to chase invoices. It’s incredibly realistic and can open up conversations without awkwardness." — Webinar Host
Some firms prefer to keep the human element, but AI-driven WhatsApp and SMS reminders are already proving to be highly effective .
AI tools can also predict late payments based on historical data and automatically trigger additional reminders before a payment is overdue.
6. Build a strong client relationship Beyond automation and payment terms, fostering a strong relationship with clients can improve timely payments. When clients trust you and see the value in your service, they are more likely to prioritise your invoices.
"I align payments with the work being delivered. If a client hasn’t paid, we can’t file their accounts. This way, there’s a natural incentive for them to clear their balance." — Lenah Oduor
Being proactive rather than reactive ensures you stay ahead of potential payment delays.
Getting paid doesn’t have to be stressful Getting paid on time doesn’t have to be stressful . By using automation, setting clear expectations, and making the payment process effortless , accounting and bookkeeping firms can drastically reduce overdue invoices .
So, what’s the one change you’ll make today to improve your payment collection process?
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