Among the risks that a company must consider is the non-payment of invoices issued. This is an unfortunate situation, especially due to the fact that Italian legislation requires the company, or freelancer, to pay the taxes related to the issued invoice, despite the fact that the invoice has not been paid.
But then, is it possible to protect oneself from non-payment of an invoice? Are there any best practices to put in place when there are delays in the payment balance, or when, in the worst case scenario, the invoice is not paid at all ?
How to minimize the risk of bad debt
In order to minimize the chances of a client failing to pay an invoice, there are certain cautions that the freelancer as well as the entrepreneur is required to have. Let's look at them together:
- Always indicate the time limits of the payment and the IBAN to which the amount should be paid, so that the client has no excuse to delay or evade payment.
When a freelancer or business issues an invoice, he or she should take care to clarify all relevant information, to state specifics about the work performed, to specify those involved in the work, and to make explicit the amounts that the client will have to pay.
Another error involves omitting from the invoice the IBAN and bank details of the payment-a condition that makes it impossible to proceed with the balance-as well as the time limits within which to continue.
In summary: It is the responsibility, as well as personal protection, of the professional/entrepreneur to put the client in a position to pay. Being precise in the release of this information will help minimize the risk of nonpayment of invoices.
- Solicits payment
Have you provided all the relevant information, but payment is delayed? What can you do?
You can start with a phone call, during which you will assume the customer's good faith: perhaps it was an oversight and your customer will have every intention of remedying it as soon as possible.
Then, you can opt for gradually more formal channels: for example, you can send an ordinary e-mail that, if not disavowed by the other party during the eventual trial, will also have the value of documentary evidence. The latter cannot be disavowed if the client has responded or adopted such behavior as to imply that it has been read.
- You can proceed with the notice, or formal notice.
The reminder, or notice of default, must be sent by certified electronic mail - PEC - or sent by registered mail with return receipt.
The letter must also contain the reference date, i.e., the day the invoice was issued and the payment due date. If the first reminder, will not lead to the settlement of the outstanding invoice, it may be necessary to notify the customer of the intention to continue through legal proceedings. If the debtor does not make the payment, despite reminders, you can go to court, or seek an injunction without initiating a lawsuit.
Keep track of all deadlines on time
With an up-to-date schedule, you can monitor all deadlines and take consequent action if timely payment does not occur.
With Sibill, you can keep track of and modify deadlines as needed, avoiding nasty surprises, but that's not all!
Sibill is the tool for cash flow management that allows you to have a detailed, complete and timely view of your cash flow at all times,i categorize income and expenses according to your rulesand reconcile invoices quickly and easily to export the first note to hand over to your accountant in a few simple clicks.
Why choose Sibill?
In just a few minutes-and without the need for complicated integrations-with Sibill you can:
- Link all bank accounts to analyze balances and transactions in one place, easily and securely;
- Connect accounting systems to import invoices and get the first note with one click;
- Automating cash forecasting and anticipate cash flow problems;
- Carry out the automatic reconciliation of invoices saving hours of manual labor;
- Monitor incoming due dates and Remind customers who are late in making payments.
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