It would be great if all jobs went smoothly—field crew on time, tools and materials ready and happy customers who pay by the invoice due date. However, this isn’t always the case, and there are many circumstances that can delay customer payments. Steady cash flow is vital for a healthy trade and field service business, and late payments can seriously affect your operations. Payroll, expenses, overheads, interest and taxes, all rely on consistent cash flowing into your bank account.
As invoice due dates approach—or even pass—payments can slip through the cracks. A simple solution is to create a system for payment reminders. These proactive prompts, sent before and after due dates, help ensure customers stay aware of pending payments
Crafting the Perfect Payment Reminder Message
Overdue payments can occur for various reasons, such as a customer emergency, difficulty accessing funds, or simple forgetfulness. Whatever the cause, effective reminders should be professional and concise. Keep the message straightforward and to the point to avoid wasting anyone's time, including your own.
Leveraging an AI tool like ChatGPT or Google Gemini can streamline the process of creating a library of payment reminder messages for your business. We suggest using this simple AI prompt to create personalised reminders customised to your specific needs.
AI Prompt:
Imagine you are an accounts receivable specialist on the finance team of a trade and field service business. Create four distinct payment reminder templates tailored for customers: the first to accompany the initial invoice when it’s sent, the second to serve as a gentle reminder one week prior to the invoice due date, the third for the exact day the payment is due and the fourth for when the payment is one week overdue. Each template should include a section for listing the company’s current accepted payment methods (e.g., [insert payment methods and details]) and placeholders for the invoice number, job details and due date so they can be added as needed.
You can customise this prompt to include or exclude details to suit your business. Polite reminders and a simple payment method can speed up unpaid invoices and keep your revenue flow steady.
Essential Payment Details and Payment Options
An excellent past-due notice will provide all the necessary information for a customer to pay immediately. Include the available payment options, highlighting your preferred way of receiving payment. Outline any fees associated with the different methods for transparency, as no one likes surprises. Including the invoice number gives your client a quick reference that can help expedite the payment process.
List of services provided
A quick rundown of your business's services can also jog customers' memories and facilitate quick invoice turnaround. This is especially important when your client engages with different contractors or is organising a large, complex project. It can be challenging to keep track of which team completed what and when.
This is also necessary if someone manages your customer’s finances or represents their interests. Providing the job details means everyone is on the same page and understands what the overdue invoice relates to.
Attaching a copy of the invoice itself is a simple way to refresh a customer’s memory and provide transparency. Need templates for business invoices? Try our free templates.
Due Date
The due date is an essential facet of payment reminders, as it provides a clear deadline for your client and a reference point for late payments.
If a due date has passed, include the length of time the invoice is overdue, for example: ‘one day overdue’ or ‘two weeks overdue.’
Late Fees
Overdue invoices interrupt your business's cash flow, which can have a domino effect on your budget. Late fees for overdue payments are an option to show clients that your business takes contracts and due dates very seriously, but there is room for leniency.
Your quotes, contracts and invoices should outline late fee stipulations. Transparency is key to ensuring clear communication between your business and customers.
Best Ways to Send Payment Reminders
There are multiple options for sending reminders, each with its own benefits. Most businesses use a mix of methods to ensure customers receive reminders, but choosing a primary method and a secondary method is the best way to organise your customer communications and keep a clear record of who has received payment requests.
Email is one of the most popular methods to send invoice reminders, as they are flexible and swift. It provides an opportunity to include a personal, professional message and combine the best parts of traditional mail without the slow sending.
Email also simplifies the process for larger clients to review, forward and save documents, and most clients will expect this method. The only caveat is that email reminders for upcoming due dates can be seen as annoying if sent in excess and can also end up in spam folders. Use email in addition to other methods for the best effect.
Example Email 1 - Payment Due today
Example Email 2 - Payment Overdue
SMS
SMS is a great method for sending upcoming payment alerts. It goes directly to a client’s phone and appears as a notification. It’s a friendly way to reach out and works well for field service teams with small residential clients and customers.
The main drawback of SMS is that long messages may not display or format correctly. Additionally, for larger commercial clients with finance teams, SMS is typically not recommended, as they often prefer communication to be directed to their accounts payable team via email.
Automated phone call
Phone calls can be hit and miss, but they are an effective method for payment reminders. Even if not picked up, automated phone calls go to voicemail. Using automated phone calls in addition to another method is the best bet, as some clients will not check their voice messages.
Physical mail
The classic for documents of all kinds. Mail can take time, and expediting an overdue invoice may add more costs. Physical mail is an excellent option for sending billing follow-ups to customers who have not transitioned to digital systems. It can serve as a reliable backup if previous digital reminders have gone unanswered. Additionally, some clients may prefer physical mail for their records if they have not embraced the paperless office or home.
Tools to Send, Manage, and Automate Payment Reminders
Automating payment reminders is an excellent option for any business, especially for those who interact with complex projects and clients. Industry software and accounting software offer their own features, so we’ll cover some of the options here.
Different services have strengths and weaknesses, so finding the best fit depends on your business's needs.
Simpro
Simpro’s field service management software offers various features to help optimise cash flow, such as automated invoicing, payments and payment reminders. With Simpro’s customer portal, you can provide convenient payment options for your customers and schedule automatic email and SMS reminders to prevent overdue invoices. Simpro also allows you to customise messages and apply rules to suit your needs.
Customers can also access payment options online, over the phone and even in the Simpro mobile app, meaning your business gets paid, faster. Simpro also integrates with existing accounting software you may be using, such as QuickBooks, Sage, Xero and others.
AroFlo
AroFlo is another example of software that offers robust features to help you manage payments and maintain a healthy cash flow. Its event messages functionality allows you to set up automated notifications for various events, including invoice payments.
QuickBooks
QuickBooks accounting software offers both manual and automatic payment reminders. For automatic reminders, select a preference for each customer or company and set the time and frequency. Manual reminders can be selected at any time and are accessible from QuickBooks’ desktop version.
Xero
Xero provides automated invoice reminders designed to streamline payment follow-ups. Businesses can schedule up to five email reminders for each invoice, which can be sent either before or after the due date. These reminders are customisable, allowing users to include options like attaching a PDF copy of the invoice or setting a minimum invoice amount to trigger reminders.
Time to Automate
Automated payment reminders are an excellent way to keep invoice payments steady and reduce your business's administrative workload. They’re also a great example of how switching from manual to digital work processes can allow you to do more in your business with less effort.
Ready to create and automate payment processes for your business? Try Simpro’s field service software today to manage all aspects of invoicing, quoting and payments. Integrate all your workflows, from quote to cash, and access essential features anywhere, any time, with Simpro’s mobile app.
Try a Simpro demo today to see how it can transform your business.
FAQs
How can I automate payment reminders?
Reminder messages can be easily automated using field service or accounting software. Depending on your business size and needs, there are a range of options available. You can adjust the software settings to customise the frequency and contents of your reminder messages.
Is it better to send reminders via email or SMS?
It depends on your business and customers. SMS is more direct but works better for short-form messages, like upcoming reminders or short-term overdue invoices. Email is as direct, but it can take longer to get a response than SMS. Email does have greater flexibility and allows easy file attachments, but it can be missed or take a longer turnaround.
How many reminders should I send before taking further action?
It depends on your business and is something to consider as part of your payment policy that customers agree to. Some businesses will wait up to 6 months to settle overdue invoices, but sadly, some clients won’t budge no matter how many messages you send. Laws surrounding these periods differ, but as long as you have a clear outline and have made a final demand for payment, you can typically take action after a few months.
Check out these helpful government resources in your country:
Can I customise reminders for different customer segments?
Yes! You can set different rules and times for various customers and companies. Choose your customer, method, frequency and alerts for a personalised experience.
