Why most invoices get ignored

A bad invoice is easy to ignore. No due date, vague line items, no bank account number - a slow payer's dream. If your invoices are consistently late to be paid, there's a good chance the problem starts before you even hit send.

The good news: getting paid faster is mostly about process, not chasing. Write a better invoice and you'll spend far less time following up.

The 10 essentials every NZ trade invoice must include

Under the Goods and Services Tax Act 1985, a GST-registered supplier must give the buyer what IRD now calls taxable supply information. This replaced the old "tax invoice" rules on 1 April 2023. The name changed, not the substance: the same details still have to reach your customer, and an invoice headed "Tax Invoice" still complies. Missing any of the required details can give a client grounds to delay payment - or reject the invoice entirely. See IRD on GST for the current rules.

For invoices under $1,000:

A clear label such as "Tax Invoice" or "Invoice" - since 1 April 2023 the exact words are no longer mandated, but labelling it plainly avoids any argument
Your name (or trading name) and GST registration number
The date of issue
A description of the goods or services
The amount charged, including GST

For invoices over $1,000, add:

The buyer's name and address
The quantity or volume of goods/services supplied
The GST amount shown separately, or a statement that GST is included

Use our free GST calculator to work out the GST amount to show on any invoice.

Beyond the legal minimum, a professional trade invoice should also include:

A unique invoice number (sequential, easy to reference)
Your full bank account number - don't make clients hunt for it
Your contact phone number
A clear, specific due date (not "30 days" - an actual date)
A breakdown of labour, materials, and any subcontractor costs

Set a real due date - not vague terms

"Net 30" and "payment on receipt" are vague enough to be meaningless. A busy accounts person with 40 invoices in their inbox will process the ones with actual dates first.

Write an actual calendar date: "Payment due by 15 June 2025." It's concrete, it's harder to ignore, and it gives you a clear trigger for follow-up.

For most NZ trade work:

Residential jobs under $5,000: 7 days is standard and reasonable
Residential jobs over $5,000: 14 days
Commercial work: 20-30 days is more common, but 14 days is worth trying
Government or large contractor work: expect 20-30 days minimum

If you've been running 30-day terms and getting burned, tighten them. Most residential clients won't push back on 14-day terms if they're stated upfront.

Make payment as easy as possible

Every extra step between your invoice and their payment is a reason to delay. Remove the friction:

Include your bank account on every invoice. Don't assume they saved it from last time. If you're a sole trader, your personal account is fine - many tradies use a dedicated business account to keep finances clean.

Use a clear payment reference. Tell them what to put in the reference field: your invoice number or a job name. This saves you matching payments against your accounts.

Accept multiple methods if you can. Bank transfer is standard in NZ, but some clients prefer credit card. Services like Xero, MYOB, or Stripe let you add a "Pay now" button directly to your invoice. Card-paying clients are often faster payers.

Consider Poli or bank payment links for larger invoices - they reduce the steps between invoice receipt and payment.

Invoice the same day the job is done

Every day you wait to invoice is a day later you get paid. A job completed on Thursday afternoon should be invoiced Thursday evening or first thing Friday morning.

Waiting a week does several things that hurt you:

The client's budget may have shifted
Other invoices pile up ahead of yours in their payment queue
The job fades from memory, making disputes more likely
It signals that the debt isn't urgent

For larger projects, don't wait until completion. Invoice in stages:

A deposit (30-50% of the quoted amount) before you start
A progress payment at an agreed milestone (e.g., when materials are installed)
Final payment on practical completion

Progress billing keeps your cashflow steady and reduces the size of any single disputed invoice.

Write clear line items - not just a lump sum

A lump sum invoice is easy to dispute. "Labour: $2,400" gives a client nothing to verify. Break it down:

Labour: [X] hours @ $[rate]/hr = $[total]
Materials: [itemised list with costs]
Travel/call-out fee: $[amount]
Subcontractor - [name of trade]: $[amount]

Detailed line items do three things:

They demonstrate you've tracked and accounted for your time properly
They make the invoice harder to dispute without grounds
They reduce the back-and-forth of "what does this charge cover?"

Follow up before the invoice is even late

Sending a brief, friendly reminder 2-3 days before the due date is not chasing - it's good service. A simple email: "Just a reminder that invoice #[number] for $[amount] is due on [date]. Bank details are on the invoice. Let me know if you have any questions."

Most late payments happen because someone genuinely forgot, was waiting on their own payment, or the invoice got lost in a spam folder. A pre-due-date nudge catches all three scenarios before they become problems.

The follow-up schedule when it goes overdue

If the due date passes with no payment, act immediately. The first 14 days are critical - recovery rates drop sharply after 30 days and again after 60.

Day 1 overdue: Send a brief written reminder (email or text). Keep it professional and factual: amount, due date, bank details.
Day 3-5: Phone call. Be calm, direct, and professional. Ask for a specific payment date.
Day 7-10: Second written follow-up. Firm but not aggressive. Reference previous contact.
Day 14: Formal written demand. State the amount, the original due date, and a final payment deadline (usually 7 days). Mention what action you'll take if not received.
Day 21+: Escalate - Disputes Tribunal, debt recovery service, or both.

For a detailed step-by-step guide on what to do when a client refuses to pay, see our guide to your legal options in NZ.

Common invoice mistakes that delay payment

No bank account on the invoice - the single most common reason for "I couldn't find your details"
Invoice sent to the wrong person - always confirm the accounts contact, especially for commercial clients
Typo in the amount - a mismatch with the quote gives grounds to query and delay
No GST number when you're GST-registered - your taxable supply information is incomplete without it
PDF not attached - "I didn't receive it" is easy when the email has no attachment

Send invoices as PDF attachments, not body text. They're harder to accidentally delete and easier to file.

Using invoicing software as a tradie

Paper invoices and Word documents work, but they slow you down and create room for error. Most NZ tradies use one of these:

Xero: dominant in NZ, excellent bank feeds and GST reporting
MYOB: strong for job-costing and larger trade businesses
Tradify: built specifically for tradies, good mobile app for on-site invoicing
Hnry: popular for sole traders, handles GST and tax automatically

Even if you're not ready to move to software, a simple template in Google Docs or Word is better than handwriting invoices. The key is consistency: same format, same information, every time.

FAQ

How much can I charge for late payment fees in NZ? You can charge late payment interest, but only if it was agreed in your terms upfront. A common rate is 2-3% per month on overdue amounts. Without pre-agreed terms, you generally can't add fees after the fact. The Paidnice blog has a useful guide on NZ late fee rules.

Do I need to be GST-registered to issue invoices? No. If you're not GST-registered (i.e., your taxable supplies are under $60,000 per year), you don't issue taxable supply information and you can't charge GST - just send a regular invoice. If you're over the threshold, registration is compulsory.

Can I invoice immediately even if the client hasn't signed off on the work? Yes. Invoice when the work is done, not when the client formally signs off. Waiting for sign-off is common in commercial work but unnecessary for most residential trade jobs. If there's a dispute about quality, handle it through the complaint, not by withholding your invoice.

What should I do if a client disputes the invoice amount? Get the dispute in writing immediately. Don't agree verbally to reduce the amount. Respond in writing, address each point, and if you've done the work as quoted, stick to your price. Partial disputes are common - agree to split the undisputed portion and handle the disputed amount separately.

Is it worth using a debt recovery service for small invoices? At $15 per invoice through a service like TradeFlow, professional follow-up often makes sense for invoices over $200. The cost is less than one hour of your billable time, and a third-party call is often more effective than the business owner calling personally.