I forgot to invoice a couple of years ago, how do I do so now?

September 24, 2010 3:53 AM

I have some old work (couple of years) I neglected to invoice for. How do I maximise the chance of the chance of getting paid now? Given the time and the amounts legal action is not cost effective

I'm an idiot and I didn't invoice a couple of clients in time. Where I live commercial debts don't expire for 5 year so I am within time but as I don't work for these people any more, nor am I likely to, I have no leverage in that respect.

I'm preparing the invoices now, I have few sticks, what carrots can I use? My thought is to prepare the ground by sending an email saying these invoices are on the way and to offer a 20% discount for payment within 14 days.

This will be a learning experience.

posted by epo to Work & Money (8 answers total)

If you did the work and fulfilled the contract, they should have no trouble paying it.

"Hey, we did an audit and it looks like we did not send a final invoice for job x, nor do we have a record of payment. Enclosed is the invoice as a PDF. Note that the terms offer a substantial discount for paying quickly. Thanks again for your business. If you have any questions please don't hesitate to call."

This will be easier if they're a large company and have an actual billing department, I wouldn't be surprised if this happens from time to time.

However, if these were contentious jobs, there wasn't a contract, they have since stopped using the work you did, or it's a small business with one of "those" owners, your chance of success is probably far less.

Are we talking hundreds or thousands of dollars here?
posted by maxwelton at 4:11 AM on September 24, 2010 [2 favorites]

Response by poster: They're small companies (UK), less than a thousand in one case, maybe a couple of thousand in the other. Don't think the jobs were contentious in any way.
posted by epo at 4:21 AM on September 24, 2010

I don't think you should even begin to consider legal action unless the invoices you raise subsequently become overdue. It's your oversight that has caused this problem, and they shouldn't be expected to pay without an invoice.

I'm a sole trader and am sometimes slow to invoice, and in such cases I send the invoice along with an apology for the delay (you never know what kind of inconvenience late invoicing might cause them, so a blanket apology is best). I've never had a problem with reputable companies using this approach.
posted by altolinguistic at 5:49 AM on September 24, 2010

I agree with the approach maxwelton suggests, but I would be prepared to take a haircut. A lawyer once billed me four years late for some work, and I called him and said I recognized the obligation but (legitimately) I didn't expect such a big bill for what he had done. He asked how much I was willing to pay; I stated a price; he agreed and I paid.

Also, it might be better to call your contacts at these outfits, explain the situation, and then send the bill. On the phone, in a friendly conversation, it's harder for the person to say that the debt is too old and they're going to ignore it. So if you get a verbal OK (from the person who probably has to approve payment anyway), chances are better that payment will go through without a hassle.
posted by beagle at 7:01 AM on September 24, 2010 [2 favorites]

Oh, and, don't offer a discount until they bring it up.
posted by beagle at 7:02 AM on September 24, 2010

Response by poster: @altolinguist, absolutely. The legal action was meant in the event of them declining to pay. An apology for the inconvenience is reasonable etiquette.
posted by epo at 7:02 AM on September 24, 2010

We are a small NGO who have just been billed for old work. We are not amused. We would be even less amused to be told that you expect immediate payment. (And we are disputing having commissioned part of the work.)
posted by Idcoytco at 12:36 PM on September 24, 2010

a couple of years is a long time. for small amounts like this, our company is routinely forced to write off legitimate invoices because it's not worth the ill will and legal hassle to collect, even if the circumstances are 100% in our favor. I'd forewarn my contact there with a friendly phone call, apologize profusely, and send a small gift along with the invoice. Don't forget that this was your mistake. however strong your legal position might be, you should count yourself lucky to recover any payment at all.
posted by Chris4d at 6:07 PM on September 29, 2010