Allison Harrison
August 17, 2020

Tips for reducing overdue accounts receivable

Every business has some aging accounts receivable. Whether it's your client that did not pay or an NSF (not sufficient funds) check, it happens. Regardless of the situation, you want your company to get paid for the service that was provided. While it is not always the company’s fault their overdue accounts receivable is growing, there are some internal steps the company can take with accounts receivable collection in order to reduce the number of these accounts, or keep them from becoming overdue in the first place. We have collected a shortlist of best practices to reduce the amount of those overdue invoices and assist in your business’s accounts receivable collection.


  • Give honest and accurate estimates prior to rendering services or shipping product
  • Issue invoices timely (within 1 months of services or shipping)
  • Request timely payment (net 15 days)
  • Notify customers timely if an invoice remains outstanding
  • Stop providing services or products on overdue invoices
  • Send friendly reminders in advance of due date
  • Offer payment plans or arrangements for customers with higher balances
  • Offer convenient payment methods (i.e. credit cards, online payments, etc.)
  • Be polite and professional when discussing overdue balances
  • Provide services or products in line with the estimate provided
  • Consider requiring an upfront deposit equal to half the anticipated first invoice
  • Offer electronic invoices

Do Not

  • Do not wait months to issue invoices
  • Do not limit payment methods to cash or check
  • Do not continue to provide services or products when invoices remain outstanding
  • Do not refuse to enter into payment arrangements
  • Do not be rude or swear at a customer when discussing an overdue invoice

If you have questions about accounts receivable collection or need legal assistance with accounts receivable collection process, please contact Allison L. Harrison Law, LLC, to schedule a consultation with your small business attorney in Columbus.