An invoice sent is not yet an invoice paid. Between those two events, you need to track due dates, identify payments and deal with delays. A regular process protects cash flow without unnecessarily damaging customer relationships.
At a glance
- A cash receipt is money actually received; it does not always represent a new sale.
- Keep an invoice schedule showing amounts, expected dates, payments received and outstanding balances.
- Match payments to invoices to avoid duplicate entries and incorrect reminders.
- When payment is late, first check the circumstances, then follow up clearly and keep records.
Cash receipts and revenue: what is the difference?
A service invoiced in June may be paid in July. Revenue belongs to the appropriate period under the accounting rules, while cash arrives when payment is made.
A loan or shareholder contribution also brings cash into the business without being revenue. Conversely, a customer deposit can arrive before the service is delivered.
The word “receipt” usually refers to money received. In your records, use explicit labels: invoiced, received and still due. The whole team will then know which amount is being discussed.
Effective follow-up starts with an invoice that is easy to process
For some customers, the person placing the order is not the person paying. An invoice may be held up because it lacks a required reference, was not sent to the accounting department or still needs internal approval.
Ask for those details before issuing the first substantial invoice. Also check that required deliverables or acceptance documents have been sent. This does not guarantee timely payment, but prevents avoidable administrative delays.
Once the due date passes, first confirm receipt and the reason for the delay. You can then distinguish a missing document, a commercial dispute and a payment difficulty. Sending the same automatic reminder in all three cases may simply waste time.
Build a tracking table
| Information | Why track it? |
|---|---|
| Customer and invoice number | Identify the receivable unambiguously |
| Amount and currency | Avoid incorrect matching |
| Issue date and due date | Know when payment is expected |
| Payments and credit notes | Calculate the actual outstanding balance |
| Reason for delay | Distinguish an oversight, dispute or financial difficulty |
| Next action | Keep the case moving |
A spreadsheet may be sufficient for a small number of invoices. As volume grows, software simplifies reconciliation, partial payments and reminders. Check that it supports your currencies and payment methods. Your business bank account’s accounting features also matter: statements compatible with your software make matching receipts easier.
Example of a customer balance to follow up
A CHF 10,000 invoice has received a CHF 6,000 payment and an accepted CHF 1,000 credit note. The outstanding balance is therefore CHF 3,000.
| Invoice | Original amount | Payment | Credit note | Still due | Next action |
|---|---|---|---|---|---|
| F-2026-045 | 10,000 | 6,000 | 1,000 | 3,000 | Check the promised payment on the agreed date |
Amounts above are in CHF. The payment reduces the receivable; it must not create a new sale. The credit note must be documented. A reminder still requesting CHF 10,000 would be wrong and harm the customer relationship.
Add the due date, overdue period and person responsible
For the same invoice F-2026-045, the record at 20 September 2026 could include:
| Contractual due date | Balance due | Overdue at 20 September | Commitment obtained | Owner | Next check |
|---|---|---|---|---|---|
| 31 August 2026 | CHF 3,000 | 20 days | Payment promised for 24 September | Account manager | Check the bank on 25 September |
The overdue period runs from the due date, not the invoice issue date. A promise is not a payment: keep it in the follow-up list until reconciled with the bank.
Keep the tracking table consistent with the account used to receive payments. Our article on Swiss business bank accounts explains how to organise this part of your administration.
A four-step routine
1. Invoice accurately and promptly
Check the recipient, purchase order reference, service details and payment information. A document sent to the wrong person may remain blocked for weeks. Our article explains how to create a Swiss invoice.
Agree due dates clearly, ideally at the quotation stage. A deposit or milestone billing may suit a long assignment.
2. Reconcile payments
Regularly compare bank movements with invoices. Address partial payments, deducted fees and missing references.
A CHF 970 payment against a CHF 1,000 invoice does not automatically settle the invoice: explain the CHF 30 difference. Do not record a second sale when payment relates to an invoice already recognised. The debit and credit examples show how payment clears the customer balance.
3. Review overdue invoices
Sort balances by age and amount. Identify disputes before sending a standard reminder. A disputed service and an administrative oversight need different responses.
Assign an owner to each significant case. Record payment promises and check that they are honoured.
4. Follow up methodically
Start with a factual message: the invoice concerned, outstanding amount, due date and a copy of the document. If necessary, call to understand the obstacle and agree a date.
When dialogue is no longer enough, assess formal notice and appropriate collection steps. Do not automatically add fees or penalties without a valid basis. Check default and interest conditions against the contract and applicable law.
Build an aged receivables report that supports action
An aged receivables report groups unpaid invoices by how overdue they are. This example uses the same reference date, after reconciling payments and credit notes:
| Status | Outstanding balance | Practical interpretation |
|---|---|---|
| Not yet due | CHF 18,000 | Prepare for upcoming receipts |
| 1–30 days overdue | CHF 7,000 | Check oversights and administrative delays |
| 31–60 days overdue | CHF 4,000 | Obtain a precise commitment and resolve disputes |
| More than 60 days overdue | CHF 3,000 | Assess loss risk and further collection steps |
| Total | CHF 32,000 | Including CHF 14,000 overdue |
Age alone does not automatically determine a value adjustment. A recent receivable from an insolvent customer may be riskier than an older invoice with confirmed payment. The classification organises your questions; the accounting assessment depends on the facts.
Reconcile the CHF 32,000 total with the Trade receivables account using the same dates, currencies and scope. If they differ, investigate unallocated receipts, manual entries and missing invoices before sending reminders.
Keep unidentified payments on an investigation list. Do not assign one to the first customer with a similar amount: you could remind the customer who has paid while wrongly treating another customer’s invoice as settled.
Adapt follow-up to your customers
A regular customer who normally pays on time may simply have a new administrative contact. A new customer placing a large order warrants a closer review of payment terms.
Adapt deposits, credit limits and reminders to the actual risk. The aim is to secure payment while maintaining a professional relationship.
Write a precise reminder, then follow up on the response
A first message can be simple: “Hello, our records show that the CHF 3,000 balance of invoice F-2026-045, due on 31 August, remains outstanding. A copy of the invoice is attached. Could you confirm receipt and the expected payment date? If you have already paid, please send the payment reference so we can check.”
Adapt the wording to the relationship and facts. Do not send a reminder before checking recent payments, credit notes and special agreements. An incorrect reminder weakens your credibility and creates work for both parties.
If the customer promises payment, record the amount and date, then check the statement after that date. If part of the service is disputed, identify the exact disagreement and who must resolve it. A vague promise or unassigned dispute is not a solution.
For significant amounts, also review total exposure: overdue invoices, invoices not yet due and new orders in progress. An old unpaid invoice may justify reviewing terms for future services, depending on the contracts and circumstances.
Turn tracking into forecasts
Use expected payment dates in the cash flow budget. Do not optimistically place every old receivable among next month’s receipts.
Monitor overdue amounts, age, disputes and average payment time. Improvements often reduce working capital requirements, but the calculation must remain consistent with sales and seasonality.
Collect payments consistently without unnecessary tension
A clear process lets you follow up at the right time, for the right amount and with the right information. It protects cash flow while leaving room for dialogue when a genuine problem exists.
Our accounting service can help establish reliable customer balances, an essential basis for reminders and cash flow forecasts.
Frequently asked questions
Does a partial payment close an invoice?
No. It reduces the balance, unless an agreement or another justified transaction addresses the difference.
Can all payment reminders be automated?
Simple reminders can be automated. Disputes, special agreements and unreconciled payments require checks to avoid inappropriate reminders.
Should you wait until month-end?
No. A weekly routine may be enough to detect delays promptly. Frequency should reflect invoice volume and cash flow sensitivity.
Sources and references
Romain Prieur is a Swiss certified public accountant and the founder of Entreprendre.ch. With more than ten years of experience in auditing and supporting businesses in Switzerland, he advises entrepreneurs on company formation, accounting and taxation.
