How to Set Up an Invoice System That Gets You Paid Faster

Laura runs a marketing agency. She has steady clients, good referrals, and no shortage of projects. But at the end of every month, she keeps running into the same issue. Some clients forget to pay, others delay, and a few ignore invoices until she reminds them multiple times. She spends hours tracking payments and following up instead of focusing on work that actually grows her business.

For a while, she assumed this was normal. Then one month, unpaid invoices totaled more than $27,000. With bills of her own coming due including salary and rent, she had to figure out a better system to avoid these cash flow issues in the future.

Fixing the Invoicing Process

One of the biggest problems was inconsistency. Sometimes she sent invoices as soon as a project was finished, other times she got busy and put it off. There was no structure, which made payments unpredictable. To fix this, she set a strict schedule. Every invoice would now go out on the first of the month, so clients knew when to expect them.

Next, she switched from manual PDFs and bank transfers to a proper invoicing system. She chose Xero, which allowed her to:

Set up automatic reminders for late payments.

Accept credit cards, ACH transfers, and digital payments in one click.

Track outstanding invoices in real time without messy spreadsheets.

This eliminated the back-and-forth of asking clients how they wanted to pay. Now, every invoice has a “Pay Now” button, making it impossible to ignore.

Setting Clear Payment Expectations

Laura had also been hesitant to charge late fees, unsure if it would affect client relationships. After talking to other business owners, she realized most companies already expect clear payment policies. She updated her contracts to include a 2% monthly late fee on overdue invoices and made sure clients were aware of it upfront.

Within three months, late payments dropped significantly. Clients paid faster, and she no longer had to follow up multiple times just to receive what she was owed. With a structured system in place, invoicing became a routine task instead of a stressful guessing game.