Chase Overdue Invoice
Reduce the overdue invoices
On the kopilot's homepage, there is a color-coded tile mentioning the amount in overdue. That amount represents the amount of cash flying outside of your company, and that amount of cash does not serve your company's growth.
Red means that actions are required.
Click on More to enter the Overdue Receivables report.
kopilot sorts overdue invoices in different buckets based on the number of days in overdue.
The more on the left of the chart, the more critical it is.
We encourage you to follow the color scheme: RED > AMBER > PURPLE
Focus on the red basket. The longer you wait to be paid, the less chances you have to eventually see the color of the money.
Once you took an action for each invoice in the red basket, deal with the amber basket.
Finally, take actions for invoices within the purple buckets.
There is no time to lose, here. Invoices in the red basked should have been paid for more than two months ago.
Make sure there was no payment on the invoice. If kopilot syncs regularly with your software, it is only a vizualisation layer of what it contains.
Send immediately a formal payment reminder notice. If you don't know how to proceed, please refer to additional resources at the end of the article.
Here are some checkpoints to mention in the reminder:
- ✔️ the invoice details;
- ✔️a specific date by which the payment is expected;
- ✔️ your bank account number;
- ✔️ the payment's reference;
- ✔️ the contact person;
- ✔️ the possible sanctions.
The situation here is not that critical, but it remains worrisome.
In the beginning, you should establish the following rule: all invoices in the yellow basket must have been reminded at least once.
At this stage of using kopilot, you may ignore it.
Over time, we will help you to ensure all invoices are paid within the 15 days of the invoice issue date.
- How to write a payment reminder
- First payment reminder template
- Payment reminder's formulation to avoid
- How to claim fees and interests