Put the terms on every invoice
Agree payment terms before the first order, write them on the quotation and let them carry to the invoice with a due date. Terms can be simple: due on receipt, a stated number of days from the invoice date, or an agreed instalment plan. An invoice without a due date is an invoice nobody can call late.
Different customers can have different terms, so note the usual terms for each customer and apply them when you raise the quotation. TAQNIX ERP tracks payment status and due dates on invoices, so the terms you agreed stay with the document instead of living in someone's memory. Shorter terms for a new customer and longer ones for a long-standing customer are your decision, but write either one down.
Know who owes what, every week
Customer balances should be a screen, not a research project. Ask for a list of open invoices by customer, with the due date and the number of days overdue, and look at it on the same weekday every week. If the list comes from a side spreadsheet, it is out of date by the time you read it.
Record each payment on the day it arrives, against the invoice it settles. A part payment should show as part paid, with the remainder still open. Unallocated receipts are the usual reason a good customer is reminded about an invoice that was already paid, which is embarrassing for both sides and easy to avoid.
A polite escalation routine
Chase in small, predictable steps, so that no single step feels like an accusation. Keep a note of each contact and of the date the customer promised, and if you agree a new date, confirm it in writing the same day. The steps below work for most businesses and can be adjusted to your customers and your sector.
- Reminder: a short, friendly message with the invoice number, amount and due date
- Call: ask whoever pays the bills whether the invoice arrived and when payment will be made
- Statement: send a list of all open invoices and credit notes, so both sides see the same figure
- Decision: if the promised date passes, the owner or accountant decides the next step
Post-dated cheques
In some sectors in the UAE, post-dated cheques are a common way to pay, and your customers may offer them. This article states no rules about them. If you accept cheques, keep a simple register with each cheque number, amount, the date on it and the invoice it is meant to settle, and review it weekly. Ask your accountant and your bank how cheques should be shown in your books.
Keep disputes apart from collections
Many late payments are really disagreements: a wrong quantity, a damaged item, a price that differs from the quotation. Ask the customer early whether anything is wrong with the invoice. If it is, correct it with a credit note linked to the original and chase only the amount that remains. Chasing a disputed amount strains the relationship, and it will not be paid until the dispute is settled.
What to look at each week
Set aside a short, fixed slot each week and go through the same list in the same order. It takes far less time than a monthly clean-up, because small problems are caught before they become old ones. Share the list with whoever makes the calls, and agree who owns each customer.
- Invoices due this week and who will pay them
- Invoices already overdue, oldest first
- Part payments and receipts not yet matched to an invoice
- Post-dated cheques due to be banked or cleared
- Customers whose total balance keeps growing
General information, not legal or tax advice. Confirm rules with the authority or your accountant.
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