Short Paid Invoice? 5 Reasons Why Your Clients Might Underpay You
1. A Simple Mistake
Although it is not the most common reason, sometimes a client will underpay you in an invoice simply by accident. In those cases, you can usually just bring the matter to their attention and they will quickly resolve it.
On the other hand, these kinds of mistakes are less likely to happen if you use the right electronic invoicing system.
2. An Intentional Strategy
In other cases, people will intentionally underpay you as part of their business strategy. This can happen if they are short on cash and trying to keep their short term expenses as low as possible.
In those situations, some people will try to initiate a payment plan system. They will pay you part of the money they owe you now and they will wait until later to pay the rest that they owe you.
Although this may violate your agreement, the only thing you can usually do to resolve the matter is take them to court. In such cases, the court is unlikely to award you much in the way of damages, so you will only get the money that they owe you, anyway.
3. Part of a Tax Plan
Sometimes, getting underpaid can be the result of tax issues. For example, an organization might not have to pay sales tax. If your system thinks that they have to, then it will report that they paid you less money than they should.
In that case, the client has not actually done anything wrong.
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