Managing Outstanding Payments
How to manage outstanding payments and reduce bad debt in your UK small business.
Track what is outstanding
You cannot manage what you cannot see. Keep a clear record of every outstanding invoice — the customer, the amount, the due date and how long it has been overdue.
Digital invoicing software provides an outstanding payments dashboard that shows you at a glance who owes you money and how long it has been overdue. This helps you prioritise your chasing.
Prioritise your chasing
Not all outstanding payments are equal. Prioritise by amount and age — chase the largest and oldest invoices first, as these represent the biggest risk to your cash flow.
Also consider the customer relationship. A long-term customer who is occasionally late may just need a gentle reminder, while a new customer who is persistently late may need firmer action.
Reduce bad debt
Some invoices will never be paid. The key is to minimise these by setting clear terms, invoicing promptly and chasing consistently. For invoices that are genuinely uncollectable, write them off as bad debt for tax purposes.
Prevention is better than cure. Request deposits for large jobs, check new customers' creditworthiness and stop providing services to customers with a history of non-payment.
See all outstanding payments in one place
A clear dashboard showing who owes you and how long it has been overdue.
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