When Is an Invoice Overdue? A Spreadsheet Setup That Tells You, and What to Send
By Alex Rowan Disclosure: I sell the tracker linked below. An invoice is overdue the day after its due date passes unpaid. The hard part isn't the definition. It's noticing on that day, not three weeks later when rent is due. Below is a small sheet setup that does the noticing for you, and a follow-up schedule to go with it. Step 1: Get the due date right The due date comes from your payment…
An invoice is considered overdue the day after its due date passes unpaid. The main challenge lies in noticing when that day arrives, rather than three weeks later when another bill is due. This spreadsheet setup helps you keep track of overdue invoices and their follow-up schedule.
To set up the spreadsheet, first determine the due date based on your payment terms. For example, Net 14 means payment is due 14 days after the invoice date, while Net 30 means payment is due 30 days after the invoice date. If no terms are specified, the client's accounting team typically applies their own terms, often 30 days or more.
Add columns for due date, amount, and payment date. Use a formula to automatically flag the status as "Paid," "Overdue," or "Unpaid" based on whether the payment date is filled. Highlight overdue invoices in red and those within the next three days in amber. Next, include a column for the last time you chased payment (H) and the next follow-up date (I). The next follow-up is the day after the due date, then every seven days thereafter.
Organize your spreadsheet by the next follow-up date each morning or week, and send reminder emails to overdue invoices. Start with a friendly message three days before the due date, then follow up with a request for a specific payment date or a phone/video call on the 14th day. After 30 days, send a written notice outlining the amount, overdue days, any late fees, and a deadline.
Keep all reminders in the same email thread for easy tracking. Remember to only mention late fees if specified in your contract or invoice terms.
While a free Google Sheets or Excel sheet can handle the basics, it's more effective to commit to checking the tracker once a week. Alternatively, consider an invoicing app that sends automatic reminders, but remain responsible for sending the reminder emails yourself.
Written by urgent.news from Dev.to's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
