Getting the money you’re owed for the work you’ve done is crucial to your long-term success, since late payments can hurt your cash flow. Many payment delays can be avoided, however, by developing an effective collections plan. Use these steps to create yours.

Step 1: Bill correctly
Some late payments can be directly tied to confusing or inaccurate invoices. All bills should clearly display the amount due and a description of the items or project delivered; payment due dates and terms; an invoice, vendor and purchase order number (if applicable); the name and address of the customer; and your business name, address and tax ID number. You can also include your business’ bank account number to encourage direct deposit of payments. Include the name, phone and email address of the person to contact should questions arise. Also, make sure you’re billing the right person – an incorrectly routed invoice can push payment out 30 or more days.

Step 2: Check customer satisfaction
Dissatisfied customers are more likely to pay late. A friendly call a week or two before payment is due lets you ask about your performance to make sure you met your customer’s needs. End these calls by asking if your bill was received and reinforcing its due date.

Step 3: Send overdue notices
Be diligent in tracking overdue accounts. If payment has not been received a week after the due date has passed, send a pleasant reminder. You are assuming that the client has forgotten, neglected or lost the bill and will pay with gentle prodding. If, two weeks later, payment has still not been sent, send a second, friendly reminder with a duplicate invoice attached.

Step 4: Begin collection calls and letters
When a bill is 30 to 45 days past due, it’s time to get serious. Many businesses encourage payment through a series of letters and phone calls that start out courteous and become progressively more insistent as payments become more overdue. When you’re making collection calls, be prepared to handle excuses. For instance, if the debtor said a check was sent, ask when it was mailed and where it was sent.

Step 5: Mail final collection letter
At 90 days past due, you need to be serious and demanding. Your final collection letter should confirm any payment terms you previously negotiated and state that if payment is not received by a certain date, the account will be turned over to a collection agency, which may adversely affect the client’s credit rating.

Step 6: Hire a collection agency
An account over 90 days in arrears may require professional help. Receiving a letter from a collection agency often motivates a debtor to pay. Be aware, though, that their fees can be steep – agencies typically take from a quarter to a half of what they collect.