How To Action Each Step In The Overdue Debtors Process

Once the overdue debtors lists in Xero and Airtable have been reviewed, the Office Administrator will then action any steps that are required, updating the Overdue Debtors Airtable > Accounts > Overdue Debtors tab as they go.

It is important to update the step they are up to in the Action taken column and the date the step was taken, as well as anything else of note in relation to the client/invoice, such as possible reasons for delay in payment eg they are waiting for people to pay them before they can pay us.

If a client has asked to pay on a certain date, or an arrangement is made for a client to pay off an invoice in smaller weekly payments, then the process can be paused at the current step by changing it to the Hold step of the same number. If the client does not pay when or how it is agreed to, then the steps can be resumed from the next step number in the process.

Important Reminder:  Before sending any reminders always make sure that Xero has been reconciled. Also check to see if there are any notes in Airtable or in Xero about payment/comms with the client, or if any of the GoCardless payments have been cancelled or defaulted due to insufficient funds.

Step 1: Xero Email Reminder

When an invoice is 7 days overdue, an email reminder will automatically be sent out from Xero.

Important: Double-check first to see that a reminder has been sent to the client. To do this, open the invoice in Xero and scroll down to the History & Notes section at the bottom. Click on the dropdown arrow to open the section, and this is where there will be a note like the one below.

If the reminder has been sent to the client, then the Office Administrator will add the date to the Last Contact column and select 1 / Xero reminder sent from the Action taken dropdown.

If a reminder has not gone out, then one will need to sent manually, by following the process below:

1. Open the invoice in Xero

2. Click on the Email button at the top right-hand side

3. From the Email template dropdown select Email reminder

4. Add any additional notes or make changes to the templated message, if applicable

5. Select the green Send button

Once sent, the Office Administrator will add the details of the invoice into the Overdue Debtors tab of the Accounts base in Airtable. This will include:

• The client's business name

• The date the invoice was issued

• The date the invoice was due

• The invoice number

• The invoice amount

• The type of invoice (Reference column) - eg Service Plan, Flexi Plan, Expenses, etc

• Any applicable notes - eg if a GoCardless payment defaulted due to insufficient funds

• The Head VA

Repeat steps 1 to 5 for all applicable invoices, and update the Last Contact column with today's date and select 1 / Xero reminder sent from the Action taken dropdown.

Step 2: Xero Statement Reminder

When an invoice is 14 days overdue, the Office Administrator will send a statement reminder from Xero.

1. Log into Xero

2. From the Dashboard click on Invoices owed to you

3. In the Sales overview go to Customers owing the most and click on All to the right of the page. This will then give you a list of all invoices starting with the largest amount owed (totals in red on the right-hand side)

4. Open a separate tab for the overdue client by holding Ctrl and clicking on their name in the list. This will show the statement for the client

5. Make sure that the Statement Type is set as Outstanding and the date is today's date

6. Click on the Email button

7. From the Email template dropdown select Statement reminder

8. Add any additional notes or changesto the templated message, if applicable

9. Select the green Send button

Repeat for all applicable invoices, and update the Last Contact column with today's date and select 2 / Xero statement sent from the Action taken dropdown

Step 3: Email Follow Up - Rochelle

When an invoice is 21 days overdue, the Office Administrator will send an email follow up via the Assist inbox.

Information to be attached to email:

• PDF of the client's outstanding statement 

• PDF of each of the client's overdue invoice/s

To:  [Client company email contact as noted in Xero]

Subject:  Strictly Savvy Limited Overdue Account

Email:  Hi [Contact First Name],

Attached is your outstanding statement as of [Statement Date]. The outstanding balance for [invoice/s] [XXXXX] is $[Statement Balance].

We understand that occasionally invoices are mislaid, and we are sending you this reminder on the off chance that this has happened. Please find the outstanding [invoice/s] attached for your records.

Can you please advise when we can expect payment from you.

If your payment was made recently, please accept our thanks and disregard this reminder.

If you have any questions, please let us know.

Kind regards,

[Email Signature]

Repeat for all applicable invoices, and update the Last Contact column with today's date and select 3 / Follow up email - Rochelle from the Action taken dropdown.

Step 4: Email Follow Up - Leadership Team

When an invoice is 28 days overdue, one of the Leadership Team will send the client an email foolow up from their inbox as per below. This will either be from the General Manager, or the client's Account Manager (Brenna or Anesha).

Information to be attached to email:

• PDF of the client's outstanding statement 

• PDF of each of the client's overdue invoice/s

To:  [Client company email contact as noted in Xero]

Subject:  Strictly Savvy Limited Overdue Account

Email:  The content of this email will be drafted by the member of the Leadership Team at the time depending on the client, and who is sending the email. Along with the attachments noted above, the text will contain details of the overdue invoice, the amount, and any other details relating to the client's account at the time, such as other overdue invoices, halt of services pending payment, etc as required.

Repeat for all applicable invoices, and update the Last Contact column with today's date and select 4 / Follow up email - XXXX from the Action taken dropdown, where XXXX is the name of the person who has emailed the client - Anesha, Brenna, or Teesha.

Template for sending from Brenna's inbox:

Email:  Hi [Name],

I hope you've been well. I'm just following up on the attached [invoice/s] for our office lady as [it is/they are] showing as a few weeks overdue. Are we able to have an estimated date [this/these] will be paid?

Thanks in advance.

Step 5a: Phone Call

When an invoice is 35 days overdue, then a call is made to the contact in Xero for that account, either by the Office Administrator, the client's Account Manager or the General Manager, as per the below.

Conversation Script:

Office Administrator:  "Hi [Contact First Name], it's [Your First Name] calling from Strictly Savvy. How are you today? The reason I am calling today is in regards to your account with us. Do you have a few minutes to talk?..... Are you aware that you currently have an outstanding balance?"

Answer is Yes:

Office Administrator:  "Are you able to let me know when we can expect payment from you?"

Client:  "[Insert details here]"

Office Administrator:  "Excellent, thank you for that. I have noted this against your account. Thank you for your time. Have a great day"

Answer is No:

Office Administrator:  "Not a problem. I can send you a copy of your outstanding statement and the applicable invoices. What is the best email address to send these to?"

Client:  "[Insert details here]"

Office Administrator:  "Excellent, I will email you the details shortly. Thank you for your time. Have a great day"

Once the call has taken place, the Office Administrator will update the Last Contact column with today's date and select 5a / Called from the Action taken dropdown, adding any notes taken during the call in regards to payment. This is then followed up with an email to the client as per Step 5b below.

Step 5b: Email After Phone Call

This email is sent following the call from step 5a.

To:  [Client company email contact as noted in Xero or as advised on call above]

Subject:  Strictly Savvy Limited Overdue Account Follow Up

Email:  Hi [Contact First Name],

Thank you for your time on the phone today.

As discussed, attached is your outstanding statement as at [Statement Date Range] and the applicable overdue invoices for your records.

The outstanding balance is $[Statement Balance].

It would be appreciated if you could arrange payment and bring your account up to date as soon as possible.

Our bank account details are:

Strictly Savvy Limited - Kiwibank: 38-9017-0431406-00

If you have any questions, please let us know.

Kind regards,

[Email Signature]

Once this email has been sent to the client, the Office Administrator will update the Last Contact column with today's date and select 5a / Email after phone call from the Action taken dropdown.

Step 6: Follow Up Call 

When an invoice is 42 days overdue, then a follow up call is made to the contact in Xero for that account, either by the Office Administrator, the client's Account Manager or the General Manager, as per the below.

Conversation Script:

Office Administrator:   "Hi [Contact First Name], it's [Your First Name] calling from Strictly Savvy. How are you today? Following on from our phone conversation last week, we were expecting your outstanding account to be paid on [date] but we are yet to receive any payment. Is there any reason this hasn't happened?"

Client:  "[Insert explanation here]"

Office Administrator:   "Thank you for that, I have updated our notes regarding this on your account. I appreciate you taking the time to talk with me about this. Have a great day"

Once done, the Office Administrator will update the Last Contact column with today's date and select 6 / Follow up call from the Action taken dropdown.

Step 7: Call/text/email mentioning debt collector

When an invoice is 49 days overdue, either a phone call is made, or an email or text is sent to the client discussing the possibility of it moving over to a recovery agency (debt collector). The details of this call/text/email are to be discussed between Jo and the General Manager beforehand, and will come from one of them.

Once done, the Office Administrator will update the Last Contact column with today's date and select 7 / Call/text/email mentioning debt collector from the Action taken dropdown.

Step 8: Email - 7 Days Til Debt Collector

When an invoice is 56 days overdue, an email is sent to the client to notify them that if payment is not made within 7 days, the debt will be passed on to a recovery agent (Debt Collector). The details of this email are to be discussed between Jo and the General Manager beforehand, and will come from one of them.

To: [Client company email contact as noted in Xero]

Subject: Strictly Savvy Limited Overdue Account Follow Up

Email: This will be drafted at the time depending on whom it is coming from, and will contain details of the overdue invoice, the amount, and any other details relating to the client's account at the time, such as other overdue invoices, halt of services pending payment, etc

Once sent, the Office Administrator will update the Last Contact column with today's date and select 8 / Email - 7days til debt collector from the Action taken dropdown.

Step !: Email Sent To Debt Collector

If the overdue invoice is not paid within 7 days of step 8, then the client will be notified by email that the debt is going to the recovery agent, with another email going to the debt collection agency with the required details of the debt.

Client Email:

Subject: Strictly Savvy Limited Overdue Account Follow Up

Email: The details of this email are to be discussed between Jo and the General Manager beforehand, and will come from one of them.

Debt Collector Email:

Information to collect to attach to email:

• PDF of the client's outstanding statement 

• PDF of each of the client's overdue invoice/s

• Copies of all emails and texts sent to client

To:  sue@corporatecollections.co.nz

Subject:  Strictly Savvy Limited / [Client Company Name] Debt Collection

Email:  Hi Sue,

[Insert details of dispute]

Kind regards,

[Email Signature]

Once sent, the Office Administrator will update the Last Contact column with today's date and select 9 / Email sent to debt collector from the Action taken dropdown.

GoCardless Payment Failed

When a payment fails in GoCardless due to insufficient funds, the Office Administrator will send an email via the Assist inbox to advise the client.

If a payment fails in GoCardless it will show up in the overdue invoices list in the Sales Overview section in Xero the day after it was due around mid-morning (there is a time delay due to GoCardless being an overseas company). This can then be confirmed by logging into GoCardless, going to the Payments section.

If a payment has failed, then an email needs to be sent to the client to advise them of this, and to request a manual payment is made.

Information to be attached to email:

• PDF of each of the client's overdue invoice/s

To:  [Client company email contact as noted in Xero]

Subject:  Failed GoCardless payment

Email:  Hi [Contact First Name],

Unfortunately the GoCardless payment of $[invoice amount] for invoice [XXXXX] failed [yesterday/Friday] due to insufficient funds.

Are you able to make a manual payment to our bank account for this invoice as soon as you can please? Our account details are below:

Strictly Savvy Limited - Kiwibank: 38-9017-0431406-00

If you have any questions, please let us know.

Kind regards,

[Email Signature]

Repeat for all applicable invoices, and update the Last Contact column with today's date and select GoCardless Payment Failed from the Action taken dropdown.