Collect With Confidence, Part 3: The Follow-Up — Collecting Without Burning Bridges

So far in this series, we have talked about what Accounts Receivable really is and how to set up your invoicing so that you get paid the first time. But even with the clearest invoices and the best systems, some invoices will still go past due. That is simply part of being in business.

This week, we tackle the part that most business owners dread: following up. I have watched countless small business owners avoid this conversation for weeks or months because it feels uncomfortable. I understand that completely. But I want to offer a different way of looking at it.

Following Up Is Good Customer Service

Here is something I have learned over nearly three decades of working with small businesses: most late payments are not about unwillingness to pay. They are about invoices that got buried in an inbox, sent to the wrong person, lost in a vendor approval process, or simply forgotten.

When you follow up promptly and professionally, you are not being pushy. You are helping your client keep their own books accurate. Most people genuinely appreciate the reminder — and the ones who do not are telling you something important about the relationship.

Build a Follow-Up Rhythm

The key to comfortable collections is having a process you follow every time, so that no single conversation feels personal. Here is a simple rhythm that works well for many of my clients:

• Before the due date — A friendly courtesy reminder that the invoice is coming due. Your software can handle this one automatically.

• On the due date — A brief note that payment is due today, with the invoice attached and a payment link included.

• One to two weeks past due — A polite, personal email checking that the invoice was received and asking whether anything is needed to process it.

• Thirty days past due — Pick up the phone. A real conversation resolves more past-due invoices than any number of emails.

• Sixty days past due and beyond — A firmer written notice, a conversation about a payment plan, and a serious decision about whether to continue doing work for this client until the balance is addressed.

Tips for the Phone Call

The phone call is where most people freeze, so here are a few things that help.

• Have the details in front of you. Invoice number, date, amount, and what the work was for.

• Start by assuming the best. "I'm calling to check on invoice 1042 — I wanted to make sure it reached you" opens a very different conversation than "Why haven't you paid me?"

• Ask a clear question. "When can we expect payment?" is direct, polite, and gets you a specific answer.

• Write down what was agreed. Then follow up with a short email confirming it.

When a Payment Plan Makes Sense

Sometimes a client genuinely wants to pay but cannot pay the full balance all at once. In many cases, a written payment plan is a far better outcome than waiting indefinitely or giving up. Keep it simple: the total amount owed, the amount of each payment, the dates, and what happens if a payment is missed. Put it in writing and track it carefully in your books.

Keep a Record of Everything

Every reminder, every call, every promise of payment — write it down. Both QuickBooks Online and Xero allow you to add notes to customer records, which is a perfect place to keep a simple collection log. If an account ever does need to go further, that record will be invaluable.

When It Goes Beyond a Reminder

If an account becomes seriously delinquent and your own follow-up has not worked, there are further options, such as a formal demand letter, a collection agency, or small claims court. Each of these carries its own rules, costs, and considerations, and this is where I always encourage clients to speak with an attorney before taking the next step.

Your Step This Week

Look back at the A/R Aging report you ran two weeks ago. Choose the three oldest past-due invoices, and reach out on each one this week — an email for the newer ones, a phone call for the oldest. You may be surprised how many are resolved with a single conversation.

Next week, in the final part of the series, we will talk about cleaning up your receivables before year-end — including what to do about invoices that simply are not going to be paid.

Have Questions? MMB MBA Can Help.

At MMB MBA, LLC, we help individuals and small businesses in Southern Maine and beyond build financial confidence and keep their books accurate, organized, and ready for whatever comes next. Whether you would like help building a collection process that fits your business, tracking payment plans in your books, or simply having a knowledgeable partner in your corner, we offer full-service bookkeeping, QuickBooks and Xero consulting and training, forensic accounting, and one-on-one tutoring in accounting and financial concepts.

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The content published in this blog post, including all text, checklists, examples, recommendations, and any other materials contained herein (collectively, the "Content"), is provided by MMB MBA solely for general informational and educational purposes. The Content is not intended to be, and should not be construed as, legal advice, accounting advice, financial advice, tax advice, investment advice, or any other form of professional advice. Reading this blog post does not create any professional relationship — including but not limited to an attorney-client relationship, accountant-client relationship, or consultant-client relationship — between you and MMB MBA or any of its principals, employees, contractors, or affiliates.

Michelle McNeil-Brown, MBAOctober 19, 2026Comment

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