One of the key elements of consulting is, of course, payment. Often times we get mired in the technical aspect of the work we’re performing for our client, and getting paid becomes an afterthought.

Generally, our clients are more concerned with our work product and less concerned about paying us. They, too, are dealing with issues related to the project and often have difficulty finding time to manage project finances. Many aspects of the project process lead to a potential default in payment by the client. The goal of this paper is to provide the reader with an outline of those aspects, develop a better understanding of the process, discuss possible solutions, and ultimately help remedy the payment situation.

There are a number of points of interest that will be covered, including how we got here; monitoring your Accounts Receivable (AR) wisely; gathering communications associated with payment; the first pitch to the client; getting help; dealing with refusal to pay; dealing with the claims of “there’s no money left in the budget” from the client’s perspective; various options to instigate collections; the Demand Letter, Resolution; and Payment. This paper will provide suggestions and recommendations for each of these areas in a simple overview. Each project/client will react differently to the situation, and oftentimes you will be surprised with their reasoning. One thing you always want to remember in this process is “your firm did the work and your firm deserves to be paid.” Your client’s goal, if there is an issue with payment, will be to compromise this position.