Most business owners went into business to do the thing they are good at. The admin that comes with running a business, including sending invoices and chasing payment, is often the part they like least.

The problem is that ignoring it costs money. Not as a future risk, but as cash that is not in the bank right now. In this Business Success Conversation, Lucy Strange at Carthy Accountants covers the practical habits and options every business owner needs.

Not got time to read the whole post now? Here's a quick summary.

Why do so many business owners find it hard to get paid? They went into business to do the work, not to chase invoices. But without good habits around invoicing and credit control, cash flow suffers regardless of how busy the business is.

Why Getting Paid Feels Harder Than It Should

The honest answer is simple. Business owners are busy. The work takes priority. Invoicing gets pushed to the end of the day, the end of the week, or the end of the month.

By the time the invoice goes out, the client has moved on to the next thing. The longer the gap between completing the work and sending the invoice, the less urgent it feels to the person receiving it.

Good invoicing habits do not require more time. They require a different sequence.

The Invoicing Habits That Actually Make a Difference

Send the invoice the same day the job is complete

This is the single most effective change most business owners can make. Not invoicing weekly. Not invoicing monthly. On the same day the work is done.

The client has just received the value of the work. The invoice lands while that feeling is fresh. Payment tends to follow sooner than when the invoice arrives three weeks later alongside a dozen others.

Put a due date on every invoice

Most invoices include a payment terms statement. Fewer include the actual date payment is due.

That date makes a difference. Without it, chasing is vague. With it, the follow-up has a specific reference point. 'Payment was due on the fourteenth' is a much more direct conversation than 'payment terms are thirty days.'

Review your payment terms

Thirty-day payment terms became a default decades ago for larger businesses. Many small businesses keep them out of habit.

Shorter terms, seven or fourteen days, are increasingly common and entirely reasonable for small businesses, particularly where costs have already been paid out to complete the job. The shorter the terms, the faster the cash comes in.

When a Client Is Late Paying

Start with an email reminder

Cloud accounting software will do this automatically. Set a reminder to go out on the day an invoice becomes overdue. The tone should be brief and professional. Most late payments at this stage are oversight rather than intention.

Follow up with a phone call

If the email does not get a response, pick up the phone. This advice comes up consistently in credit control conversations and it is consistently ignored in favour of sending another email.

A phone call is harder to ignore. It creates a real conversation. That conversation almost always moves things forward in a way that a third or fourth email does not.

When the Problem Becomes More Serious

Small claims court

For invoices up to £10,000, the small claims court is available to any business owner. The process is designed to be accessible without legal representation. Filing a claim puts formal pressure on a debtor and often prompts payment before a hearing takes place.

Solicitor or debt collection agency

For invoices above £10,000, or for situations where a formal legal letter is more appropriate, a solicitor can act on your behalf. Debt collection agencies handle the whole process and take the burden of chasing off your plate entirely.

You do not have to absorb the cost of a client who will not pay. These options exist precisely for this situation.

When Credit Control Becomes a Burden

Software handles much of this automatically. Xero, QuickBooks, and FreeAgent all have automated reminder functions that send prompts at the right intervals without the business owner having to remember.

For businesses where credit control is a consistent source of stress, an accountant can help manage the process or point you toward the right external support.

Helping You Get The Business You Want

Cash flow problems rarely come from the business not being busy enough. They often come from the gap between doing the work and getting paid for it.

Closing that gap starts with the invoice. Send it the same day. Put a due date on it. Keep the payment terms realistic. Chase promptly and by phone when needed. Know your options when things escalate.

If invoicing and credit control is an area where you would like support, we would love to help.

Get in touch: carthyaccountants.co.uk/contact