The first step is a direct, professional follow-up. Many unpaid invoices are simply overlooked or lost in someone’s inbox. Send a reminder within a few days of the due date. A quick email or phone call often resolves it. Don’t assume the worst right away because people get busy and invoices slip through the cracks.

If the first reminder doesn’t work, follow up again at 15 days past due, then 30 days. Each message should be polite but increasingly firm. Reference the invoice number, the amount, and the original due date. Put it in writing every time so you have documentation. At 30 days past due, a phone call tends to work better than another email. You want to understand whether they’re disputing the work, having cash flow problems, or just ignoring you.

When a client says they can’t pay the full amount, consider offering a payment plan. Getting $500 a month for four months is better than getting nothing. Put the agreement in writing with specific dates and amounts. If they miss a payment plan installment, that tells you something about their intentions.

At 60 to 90 days past due, it’s time to escalate. Send a formal demand letter stating the amount owed and a final deadline. Mention that you’ll pursue collections or legal action if the balance isn’t resolved. For larger amounts, having an attorney send this letter carries more weight. In Florida, you can also charge interest on overdue invoices if your original contract or invoice terms included that language.

If the invoice is still unpaid after 90 days, you have a few options. You can send the account to a collections agency, which typically takes 25% to 50% of whatever they recover. You can file in small claims court for amounts under $8,000 in Florida. For larger amounts, you may need to consult an attorney. Contractors and trades businesses in Florida may also have lien rights, which is a powerful tool if the work was tied to a property.

On the bookkeeping side, unpaid invoices need proper handling in your books. Your accounts receivable should reflect the outstanding balance, and you should be reviewing an aging report regularly to catch problems early. If you use full-service bookkeeping, this kind of tracking happens monthly so nothing gets buried. When you determine an invoice is truly uncollectible, you write it off as bad debt expense. This removes it from your receivables and gives you a deduction for the lost income.

Prevention is worth more than any collection effort. Use clear payment terms on every invoice. Require deposits before starting work, especially on large projects. Invoice promptly when work is completed rather than waiting weeks. Accept multiple payment methods to remove friction. And pay attention to patterns. A client who pays late once might just be disorganized. A client who pays late every time is telling you something about how they operate.

Keeping your bookkeeping services in Jacksonville FL current means you always know who owes you money and how long it’s been outstanding. The businesses that stay on top of receivables tend to have fewer collection problems because they catch issues at 15 days, not 90.