Statistically, there is a very low rate of collection when overdue invoices go beyond 90 days. It is therefore critical to try to collect within 90 days to increase your likelihood of getting paid for your services.

One important way to improve your collections, and to protect your legal rights, is to put a due date on your invoices. This is the date by which you expect to receive payment.

I consider an invoice to be overdue 31 days after sending the invoice. Once an invoice is overdue, there are several ways to begin the collection process. The important thing is to begin as soon as the invoice is overdue. I know people who prefer to send a second notice and just mark the invoice as overdue. I prefer to just pick up the phone and call.

If you choose to send an overdue notice, the next step would be to make the phone call. At the beginning of the phone call, I generally make the issue about the service provided. I ask if the services provided were adequate and if there was something they were expecting that they did not receive. Then I switch to asking when I can expect to receive payment.

Software programs can help you with your collections process. Quick Books Pro will group your invoices into 30 day categories. When an invoice becomes 31 days overdue, it will roll from the 1 to 30 day category into the 31 to 60 day category.

Make it a practice to check your overdue invoices on a regular basis and take steps to collect as soon as possible. You can't afford not to!