An invoice marked overdue is a reason to investigate, rather than proof that the customer has paid nothing. A part-payment, an unmatched bank receipt or an agreed credit can change the amount still outstanding. Before sending a reminder, connect the invoice to the money and adjustments already recorded.
This is a focused bookkeeping check you can use for one invoice at a time. When organising bookkeeping, Leicester business owners can use it to separate a genuine unpaid balance from an incomplete record. KKB Accounting offers paperless bookkeeping support for keeping day-to-day financial records organised and ready for the accounting work that follows.
Start with the exact invoice
Open the invoice itself, rather than relying only on a customer name in an overdue list. Check its reference, issue date, description, total and the payment terms you agreed. Make sure you are looking at the current document and understand whether an earlier version was replaced.
The government's invoice guidance sets out required information such as a unique identification number, the parties' details, a description and the total owed. A clear reference helps distinguish two invoices for the same customer or similar amounts.
If the invoice includes several stages of a job, compare it with the agreed scope and any earlier invoices. Do not assume that a payment mentioning the job name belongs entirely to the latest document. Keep the original records visible while the allocation is checked.
Find what has actually arrived
Look for receipts in the relevant bank account or payment system. A customer may have used a trading name, surname or shortened reference that differs from the invoice. Similar dates and amounts can suggest a match, but they do not establish one on their own.
Where a customer says a payment has been made, compare the payment details they provide with the receiving account's record. Distinguish a payment instruction from money that has actually arrived. If you cannot identify a receipt, keep that uncertainty explicit rather than marking the invoice paid to remove it from a report.
A single transfer may settle more than one invoice. Equally, one invoice may be paid through several transfers. Record the connection in the bookkeeping system so the next person does not have to reconstruct it from an email thread.
Keep part-payments and agreed adjustments visible
Imagine an invoice for £800. The customer has paid £300, and a documented £50 credit has been agreed against that invoice. With no other adjustments, the remaining balance is £450. This is an illustrative record check, not a tax calculation or a recommendation to issue a credit.
The useful record retains all three parts: the original invoice, the receipt and the credit. Simply replacing the invoice total with the remaining balance loses the explanation. Ask your bookkeeper how the actual transactions should be recorded in the system you use.
A possible discount, an unresolved complaint or a promised payment is different from an agreed adjustment or received funds. Note the discussion and its current status. Do not create an accounting entry merely because someone suggested what might happen next.
Separate a record problem from a customer query
If the books contain an unallocated receipt, resolving that allocation may be the next useful task. If the amount is clear but the customer disputes part of the work, the issue is different. An overdue report should not hide that distinction.
Keep a short note with the invoice: what has been checked, the amount confirmed as outstanding and anything still awaiting a response. The aim is to make the next contact accurate and specific. This article does not cover debt recovery, interest or legal action; those require the applicable terms, facts and appropriate advice.
Make the next reminder consistent with the records
Once the balance is established, a payment reminder should identify the invoice and the amount you are actually asking about. Acknowledge a received part-payment where relevant. Avoid sending the original total again simply because an old email template still contains it.
After the issue is resolved, update the existing record and keep the supporting explanation. A separate spreadsheet that disagrees with the accounting system creates another question for the following month. If a query remains open, give it a clear owner and next step.
KKB Accounting's bookkeeping service starts with the records or software you use, how often you need support and when you want help to begin. If unmatched payments or unclear balances keep recurring, describe that pattern when you contact the practice. The support discussion can then focus on the process behind the problem.
A balance check before the reminder
Bring these records together before deciding which amount needs a reminder:
- The current invoice and its agreed payment terms.
- Bank receipts and the invoices each payment has been allocated to.
- Any issued credit or agreed adjustment, with its supporting record.
- A note of unresolved customer questions and the confirmed balance.
Questions customers ask
Should I mark an invoice paid when a customer sends a payment screenshot?
Check the receiving account and match the receipt before treating the balance as settled. A screenshot can help identify the payment, but the records still need to show that the money arrived and which invoice it belongs to.
What should I tell KKB Accounting if this keeps happening?
Describe which accounting records or software you currently use, how often you need bookkeeping support and when you would like support to begin. Include a clear example of the allocation problem through an agreed secure route so the bookkeeping discussion starts with the actual records.
