In the past, we’ve used to create our invoices in Word and manage them in Excel. It was quite a big challenge to have everything up to date. Since this required us to manually update our Excel file in order to know which invoices were paid, unpaid or overdue.
Anyhow knowing your invoice status will allow you to be proactive. Especially when some of your invoices are unpaid or overdue.
What are the commonly used statutes that we need to care about:
– Draft – indicates that the invoice is still work in progress and is hasn’t been sent to the client;
– Unpaid – the invoice has been sent to the client and we are waiting for the client to pay the invoice;
– Paid – our invoice has been paid by our client;
– Overdue – our invoice has not been paid and that the due date for paying has passed. This means that we should remind our client to pay his invoice;
Finally, having a correct status for your invoices will help you understand your financial condition. Since it is different between how much money you have in your pockets vs how much you should have in your pockets.