Outstanding Invoice

What is an outstanding invoice?

An outstanding invoice is one that's been sent but hasn't been paid yet. It's part of your accounts receivable—money you've earned and billed for but haven't collected. Every business has outstanding invoices; the goal is to minimize how long they stay outstanding.

Managing outstanding invoices

Best practices for keeping outstanding invoices under control:

• Invoice promptly — Send invoices as soon as work is complete
• Set clear terms — Make due dates obvious
• Make payment easy — Accept multiple payment methods, especially online payments
• Send reminders — Follow up before and after due dates
• Track aging — Know which invoices are 30, 60, 90+ days outstanding

Outstanding vs. overdue

An outstanding invoice simply hasn't been paid yet—it may or may not be past due. An overdue invoice has passed its due date without payment. All overdue invoices are outstanding, but not all outstanding invoices are overdue.