Payment of overdue accounts

With businesses experiencing a combination of inflation costs, a potential economic downturn as well as unexpected costs from recent weather events, asking for payment of overdue accounts can become a challenge. Protecting your business from unpaid invoices and bad debts is important and you’ll also want to minimise the risk to your cashflow. Here are some ideas to help you get paid.

1. Ask how customers are
Many businesses receive a lot of emails in a day, so an email may get missed or lost in an inbox. When you call your customers, make sure to first ask how they are. Your assumptions may be wrong and they may have been more impacted than you realise. Be respectful and kind in your positioning. If your customer is genuinely struggling, demanding payment is unlikely to yield the results you’re looking for, but empathy can go a long way.

2. Triage your debts

Consider those customers who are likely to be the most impacted – they’ll need to be treated with empathy and flexibility. Those who are likely to be less affected and may have a lesser debt, are probably the first people to call as they are more likely to be able to pay you.

3. Offer options to repay debt

Be honest and tell them why you’re calling. Offer them options to pay their overdue account such as spreading payments across the next 3-6 months. Empathy and professionalism are key and likely to go a long way.

4. Reach a repayment agreement

Once you’ve reached an agreement, record the details and set a reminder to check when due again. If payment doesn’t come through on the agreed date/dates, follow up with the customer. Again, empathy, flexibility and repayment options are more likely to result in the debt being repaid.

If your customer’s ability to repay you is an issue or is causing you cashflow difficulties, talk to us about how we can help. We can support you to manage your accounts receivable and ensure you have your best shot at getting paid.

< Older Post

Newer Post >

Becoming an employer of choice

15 October 2025

How to attract great people to your business and how to keep them. Three tips to help you rise to the challenge to become an employer of choice.

What the IRD Expects from You as an Employer

10 October 2025

As an employer, there are several obligations and expectations set by the Inland Revenue Department (IRD) that you must adhere to. Understanding these requirements is essential for maintaining compliance and avoiding any potential penalties. Let's take a closer look at what the IRD expects from you as an employer. Register as an Employer Before you hire your first employee, you are required to register as an employer with the IRD. This is a crucial first step in ensuring that you can meet all tax and payroll obligations. Accurate Record Keeping The IRD requires you to keep accurate and detailed records of all employment-related transactions. This includes: Employee personal details Wages and salary paid Payroll dates and methods PAYE deductions and remittances Details of benefits or allowances provided to employees Maintaining proper records helps ensure that you are reporting and remitting the correct amounts to the IRD. Deduct PAYE Tax You are responsible for deducting PAYE (Pay As You Earn) tax from your employees' pay. This involves calculating the correct amount of PAYE and ensuring it is deducted from each employee's salary or wages before their net pay is provided. Pay Employer Contributions In addition to PAYE, you may also be responsible for contributing to your employees' social security and retirement benefits, depending on the country you operate in. These contributions are typically paid in conjunction with PAYE tax. Issue Statements and Forms At the end of the tax year or upon employment termination, you should provide each employee with a statement showing their total earnings and PAYE deductions. Additionally, filing the appropriate end-of-year PAYE schedules with the IRD is required. File Employer Returns Employers are required to file regular returns with the IRD, which could be monthly, quarterly, or annually, depending on specific regulations. These returns should accurately report all payroll activities, including PAYE deductions. Handle Tax Codes and Changes It's crucial to apply the correct tax codes for each employee's circumstances. Any changes in employment status or tax code must be updated promptly to ensure accurate tax withholdings. Comply with Audit Requests The IRD may audit your business to ensure compliance with employer obligations. As such, being prepared to provide all requested information and records in a timely manner is vital. Adhering to these expectations from the IRD is not just about compliance; it's about fostering a transparent and trustworthy relationship with your employees and the tax authorities. If you need assistance with understanding or managing your obligations as an employer, consider reaching out to a professional accountant. Our team is here to help you navigate these responsibilities seamlessly, ensuring peace of mind and allowing you to focus on growing your business. Feel free to contact us for further information or assistance.

Starting a sole trader business

7 October 2025

Thinking of starting your own sole trader business? The Sole Trader Toolkit from the Ministry of Business, Innovation and Employment has all the basic advice you might need.