5 Smart Ways to Track Unpaid Bills and Never Miss a Due Date

Staying on top of unpaid bills is crucial for carpenters running their own businesses. Missing due dates can lead to late fees, damaged supplier relationships, and cash flow issues. In this guide, we’ll share 5 smart ways to track unpaid bills and never miss a due date, ensuring your carpentry business stays financially healthy and stress-free.

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1. Use Accounting Software to Automate Bill Tracking

Investing in accounting software is one of the smartest ways to manage unpaid bills. Tools like Xero, MYOB, or QuickBooks are popular in Australia and offer features specifically designed to help small business owners, including carpenters, keep track of their finances.

Key Benefits:

• • • Automated Reminders: These platforms send automatic reminders for upcoming and overdue bills, reducing the chances of missing due dates.

    • Centralised Information: All your invoices, accounts payable, and expenses are stored in one place, making it easier to review your financial status.

    • Integration with Banks: Sync your accounts to get real-time updates and reconcile transactions quickly. This also helps manage your cash flow by ensuring that your expense accounts and income are balanced.

    • Accounts Receivable & Payable Management: Track both incoming and outgoing payments efficiently to avoid any surprises on your balance sheet.

2. Set Up Calendar Alerts

Another effective way to manage unpaid bills is by using digital calendars. Google Calendar, Outlook, or Apple Calendar can be set to send reminders days or even weeks before a bill is due.

How to Do It:

• • • Recurring Events: For regular bills like rent, supplier payments, or service contracts, set recurring reminders.

    • Colour Coding: Use different colours for various types of bills—utilities, materials, subcontractor payments—to quickly identify what’s due.

    • Mobile Notifications: Ensure your calendar app is synced with your phone to receive real-time alerts about upcoming payment dates.

    • Link to Contracts: Attach notes or links to specific contract terms, ensuring you’re aware of all obligations and deadlines.

3. Maintain a Dedicated Bill Payment Spreadsheet

For those who prefer a hands-on approach, a spreadsheet can be a powerful tool. Platforms like Google Sheets or Microsoft Excel allow you to customise your bill tracking method.

Spreadsheet Essentials:

• • • Columns to Include: Date issued, due date, amount, supplier name, payment status, accounts affected, and notes on any disputes.

    • Conditional Formatting: Highlight overdue bills in red to easily spot them. You can also flag items that may need escalation to a debt collection agency if they remain unpaid.

    • Offsetting Debit and Credit: Ensure that debits and credits are properly recorded to reflect accurate accounts payable and receivable in your general ledger.

    • Regular Updates: Dedicate time weekly to update the spreadsheet, ensuring no bills slip through the cracks and your current liabilities are under control.

4. Hire an Accountant or Bookkeeper

Sometimes, the best solution is to delegate. Hiring a professional accountant or bookkeeper, especially one familiar with the carpentry industry, can save you time and prevent financial mishaps.

Advantages of Professional Help:

• • • Expertise: Accountants can help identify tax deductions, manage cash flow, and ensure compliance with Australian tax regulations. They also offer advice on handling legal obligations and contracts.

    • Personalised Advice: A professional can provide insights tailored to your business, helping you optimise your financial processes and manage risks associated with unpaid bills.

    • Debt Management: An accountant can assist with handling overdue accounts and may even liaise with a debt collection agency if necessary.

    • Less Stress: Free up your time to focus on your craft while knowing your finances are in expert hands.

5. Utilise Mobile Apps for On-the-Go Management

Mobile apps designed for financial management can be lifesavers for busy carpenters. Apps like Expensify, Zoho Books, or even your bank’s mobile app allow you to manage unpaid bills from anywhere.

Why Mobile Apps Work:

• • • Accessibility: Check your bills, due dates, and outstanding invoices while on-site or between jobs.

    • Expense Tracking: Snap photos of receipts and link them directly to your accounts, ensuring your expense account is always up to date.

    • Custom Alerts: Set notifications specific to each bill, payment date, or expense category to avoid missing any due dates.

    • Integration with Other Businesses: Some apps allow you to send and receive payments directly, making it easier to manage what your company owes and what’s owed to you.

Bonus Tip: Review Your Finances Regularly

Beyond tracking unpaid bills, it’s essential to regularly review your overall financial health. Set aside time each month to review your cash flow, outstanding invoices, and upcoming expenses. Reviewing your balance sheet and general ledger helps ensure that your assets and liabilities are accurately recorded.

Legal Considerations:

• • • If unpaid bills are leading to financial strain, consider consulting a legal professional. They can provide guidance on contract terms, debt recovery options, and when it might be appropriate to take legal action.

    • Risk Management: Understanding how unpaid bills affect your credit and loan applications is crucial. Late payments can negatively impact your business’s credit score, making it harder to secure funding in the future.

Final Thoughts

Implementing these 5 smart ways to track unpaid bills and never miss a due date will not only improve your cash flow but also reduce stress and allow you to focus on growing your carpentry business. Whether you prefer tech solutions, spreadsheets, or professional help, staying organised is key to financial success.

For personalised advice tailored to your carpentry business, ACT Tax Group is here to help. Our accounting experts understand the unique challenges faced by tradies in Australia. We offer professional advice on managing accounts payable, handling disputes with other businesses, and navigating legal obligations related to unpaid bills. Contact us today to learn more about how we can support your financial goals.