Time limit on invoicing questions

[glass99]

Does anyone have in their standard terms and conditions a time limit on questioning invoices? One of the unfortunate realities of our world is that clients are frequently slow to pay, but I do think its reasonable and (I think) legally enforceable to limit questions or disputes to invoices to 30 days from the date of issue. Perhaps even less, say 14 days, given that our general contract terms are NET30.

 

[LOTE]

I have interest accruing starting at 60 days with NET30. If I have another project or deliverable with the same client, I will hold that until receiving payment.

Fortunately, I have not run into issues of clients disputing the fee (other than the interest), but I always give an estimate up front and have them agree to it before I proceed.

 

[CWB1]

Stateside customers can dispute any bill until the applicable statute of limitations expires (typically three years). You can charge interest in the meantime, but must pro-rate and return a portion of the interest if its found that you overbilled.

 

[Aesur]

It's common to have that verbiage in contracts, but in my experience we rarely enforce it.

 

[Retrograde]

In Australia we have the "Security of Payment Act" which means clients have 15 business days to question an invoice.

 

[dik]

In your fee agreement, you have a stipulation that interest will be charged at 1.5% per month, compounded. The second invoice, you tack on the interest charges. The third one you ask when payment will be forthcoming, keeping track of the Lien limitation date.

If there is a problem with the invoice, it should be addressed within the first month.

-----*****-----
So strange to see the singularity approaching while the entire planet is rapidly turning into a hellscape. -John Coates

-Dik

 

[glass99]

@Retrograde: yes, the Australian legislation is what I have in mind. If you only allow 15 days legally to question invoices, it really does cut a lot scuzzball behavior off. The other dynamic is that some lowball idiot comes back like a year plus later, having possibly forgotten about your invoice or closed out their file or whatever to where its inconvenient for them to pay, and then claiming you did a crappy job and the money really isn't owed.

@LOTE and @dik: have you ever actually been paid interest? My understanding is that's only really useful if you go to litigation

@CWB1: In my mind waiting three years to pay an invoice is never acceptable, although some of my clients might disagree. The only way that an invoicing question after 30 days would be legitimate would be if new information had come to light after the 30th day (like the building fell down on the 31st day for example).

 

[LOTE]

Yes, in the case where the client legitimately forgot, and they want to send me another project, they will pay the invoice with the interest (through online payment portal where the interest is automatically included) so they can get me started on the next project.

If they mail a check, it rarely includes interest, regardless of when it is sent. I don't go after them for the outstanding interest.

 

[dik]

Yes, as you note... it was part of the court settlement... and the reason for including it. Lien rights are generally more effective.

-----*****-----
So strange to see the singularity approaching while the entire planet is rapidly turning into a hellscape. -John Coates

-Dik

 

[glass99]

@dik: Are lien rights something you actually need to stipulate in the contract? I would imagine some contracts actually prohibit liens, so the point of proactively allowing them would be to clarify that it is within your rights to do so?

 

[dik]

Not normally... they are part of local jurisdiction. In most jurisdictions it is not possible to write a contract that excludes them; they are very powerful. They also have a fixed time in which a lien can be filed. Time duration in which a lien can be filed is generally fixed and inflexible.

-----*****-----
So strange to see the singularity approaching while the entire planet is rapidly turning into a hellscape. -John Coates

-Dik

 

[glass99]

@LOTE: which is the online platform you mentioned that you use for client payments?

 

[LOTE]

@glass99: I just use Quickbooks Online to invoice. The invoice email and attached PDF both include a link to pay the invoice through Quickbooks. The link also provides an updated invoice PDF to download when interest starts accruing or to reflect a partial payment.

 

[XR250]

@Lote

WTF just happened to QBO's invoice format?
I'm not liking it.

 

[LOTE]

@XR250
Yes, it does seem like every time I have a feature fully integrated into my process, QBO goes and changes something, takes away the feature I liked to make it only available in one of their more expensive plans... They did that with estimates and progress invoicing, I loved that feature, then they made it only work properly in the more expensive plans.

I have not messed with the add-ons in QBO online yet (other than zapier for adding client info). I am wondering if there is an add-on I can pay a one time fee for and have it be evergreen to keep the invoicing consistent. Let me know if you find something like that.

 

[XR250]

I have not. My bookkeeper is furious. So are so many users if you check Reddit.
Intuit is literally the worst company ever.
The pop-up ads are so annoying. Don't they charge us enough already?

 

[SWComposites]

I quit using TurboTax and Quickbooks long ago because Intuit is literally the worst company ever. Well, except for SiriusXM whish is the definition of "completely scummy company" and probably most cableTV companies.

 

[XR250]

Unfortunately, my bookkeeper and accountant use it and it does make things easier for her to go into my account every 3 months and reconcile everything.
Regardless, Intuit is terrible.