Why receivables need tracking
Late payments are the most common cause of cash-flow stress in small businesses. A simple ageing view — current, 1–30 days, 30+ days — tells you where to spend your chasing time and whether to tighten terms.
Reading the ageing
The calculator separates outstanding total, overdue total and the 30+ day portion. A high 30+ share is a collections problem, not a sales problem: the work was delivered and the cash is not arriving.
Reducing overdue invoices
- Invoice immediately, not at month end
- Shorten terms from 30 to 14 days for new clients
- Take a deposit — 30–50% upfront filters non-payers
- Charge late fees, and state them on the invoice
- Make paying easy: card and ACH links on every invoice
When to escalate
Day 1 after due date: friendly reminder. Day 7: phone call. Day 30: formal notice with late fee applied. Day 60+: pause work and consider collections. Written process beats emotional chasing.
Frequently Asked Questions
What is a good average days-to-pay?
Under 30 days; 15 or less for small projects with deposits.
Should I charge late fees?
Yes, if stated in the contract — even if rarely enforced, they change behaviour.
How do I handle a disputed invoice?
Separate the dispute from the rest, document the agreement, and keep delivering only against agreed milestones.
Assumptions & disclaimer
Results are estimates for planning. Fee schedules, tax brackets and deduction limits change; confirm current figures with the marketplace, the IRS or a qualified accountant before making decisions. Nothing here is financial, tax or legal advice.
Privacy & Your Data
BizCalcTool runs entirely in your browser. The figures you enter are never uploaded, stored or shared — there is no backend to send them to.