Employer contracts are good revenue, but they pay by invoice, and invoices go late. Check your open invoices every month, follow up on a set schedule, and decide early what happens when an employer stops paying, so a few missed months don't quietly become money you never see.
Why employer invoices slip
Individual members usually pay by card on a schedule. Employers pay when someone in their office approves the invoice and sends it out. That person goes on vacation, changes jobs, or loses the email. Nobody means to skip it, and months pass.
The risk is that you keep seeing their employees the whole time. You're doing the work and carrying the cost.
Know who owes you
Your books should have an A/R aging report, a list of unpaid invoices grouped by how old they are: current, 1 to 30 days late, 31 to 60, 61 to 90, and over 90. If you only track invoices in your membership platform, ask your bookkeeper to make sure the books match it.
In a made-up example, an employer is five months behind at $315 a month. That's $1,575 sitting in A/R. Caught in month one, it's a quick email. Caught in month five, it's a hard conversation.
A follow-up schedule that works
- Due date plus 3 days: a friendly reminder with the invoice attached.
- Plus 15 days: a second note to your contact and whoever handles their payables.
- Plus 30 days: a call. Ask what's holding it up and when it will be paid.
- Plus 60 days: a written notice that follows your contract terms, which can include pausing new enrollments until the balance is paid.
What your contract allows, like late fees or pausing service, is a question for your attorney. Put the terms in writing before the next contract renews.
Make it easier to pay you
- Offer ACH or autopay on the invoice.
- Ask each employer who approves invoices and who sends payment. Get both names.
- Send invoices on the same day every month.
When it won't come in
If an invoice can't be collected, it shouldn't sit in A/R forever and make your numbers look better than they are. How it's written off depends on whether your books and your tax return are on cash or accrual. Here's the difference. Ask your CPA how to treat it, and let your bookkeeper record it.
It's also worth tracking employer revenue apart from individual members, so you can see which contracts pay well. This post explains why.
What I'd do this week
- Pull your A/R aging report.
- Email every employer more than 30 days late.
- Write down your follow-up schedule and put it on the calendar.
Common questions
Should I stop seeing an employer's members if they don't pay?
That's a business and contract decision. Check your contract with an attorney first, and tell the employer in writing before anything changes for their employees.
Can I charge late fees?
Only if your contract allows it and your state's rules permit it. Ask your attorney before adding them.
Who should send the reminders?
Whoever can do it every month without fail. Some owners hand it to their bookkeeper or office manager so the relationship stays friendly.
Want to know who owes you every month?
We review your A/R as part of the monthly close and flag late employer invoices before they pile up. If that's what you need, apply to work with us.