Getting Paid on Time: Practical Steps to Protect Your Cashflow

Why Getting Paid on Time Matters

Late payments don’t just cause frustration — they damage your cashflow, restrict growth, and can force unnecessary borrowing. By tightening up your payment processes, you protect your business and create healthier financial habits.

Clear Terms Make a Big Difference

Before any work begins, agree on:

• Payment terms in writing
• Deposit requirements
• Due dates, instalments, or milestones
• Consequences of late payment

This sets expectations early and reduces misunderstandings later on.

Use Digital Tools to Speed Up Payments

Digital systems make invoicing smoother and faster. We recommend using modern accounting software such as Xero. It helps you:

• Send invoices instantly
• Track overdue payments
• Automate reminders
• Accept online payments

Be Clear, Be Direct, Be Consistent

Customers respond better when communication is firm, polite, and regular. Keep to your procedures — don’t let overdue invoices linger.

Before the Due Date

• Send a friendly reminder
• Confirm they have everything they need to pay

On the Due Date

• Send a clear message confirming payment is now due

After Payment Becomes Late

• Send a firm reminder without delays
• Call if necessary — calls get results
• Reinforce the agreed terms

How to Reduce Future Problems

Here are steps that help prevent late payments altogether:

• Carry out basic credit checks
• Ask for deposits or staged payments
• Use direct debit or payment collection services
• Implement late payment charges where appropriate

Final Thoughts

Getting paid on time is not about chasing — it’s about setting the right procedures. With clear communication, good systems, and strong boundaries, you protect your cashflow and strengthen your business.

Useful Links

• Xero Implementation & Support
• Book a Call with I Hate Numbers
• I Hate Numbers YouTube Channel

Be sure to follow and subscribe to the I Hate Numbers podcast for weekly episodes that help you plan it, do it, and profit.