Invoice Paid: What to Do After You Get Paid

Q: What should I do when an invoice is paid?

Verify the full amount was received, match it to the invoice number, mark the invoice as paid in your system, send a payment confirmation email, and archive the invoice. Update your accounts receivable records.

Q: How long should I keep paid invoices?

In the EU, you must keep invoices for at least 7 years. In the UK it's 6 years. In the US it varies by state and tax requirements, but 7 years is a safe standard. Keep both the invoice and proof of payment.

Q: What if a client paid the wrong amount?

If overpaid: contact the client, confirm the overpayment, and refund the difference with a written confirmation. If underpaid (short payment): contact the client to clarify, and issue a new invoice or credit note for the remaining amount.

Updated May 2026 · 7 min read

Payment received — congrats! 🎉 But don't close the laptop yet. There are a handful of important steps to complete after an invoice is paid to keep your records clean, avoid disputes, and stay compliant with tax requirements.

After Payment Arrives — Your 7-Step Checklist

🔍 Verify the full amount

Check the bank transfer or payment notification against the exact invoice total. Short payments (where a client pays less than the invoice amount) are common and should not be silently accepted.

🔗 Match to invoice number

Confirm which invoice the payment is for. If the client paid multiple invoices in one transfer, match each payment to its invoice. If unclear, contact the client to confirm allocation.

✅ Mark invoice as paid in your system

Update your invoicing software immediately. A marked-paid invoice stops any further automated reminders and updates your accounts receivable balance. In Chaser, click 'Mark as Paid' on the invoice.

📧 Send a payment confirmation email

A brief, professional 'payment received' confirmation is good practice. It closes the loop with the client, prevents future disputes about whether payment was made, and builds trust.

🗂️ Archive the invoice

Move the invoice to your paid/archived folder. In Chaser, paid invoices are automatically organised so your active dashboard only shows outstanding invoices.

📊 Update your accounts receivable

Remove the invoice from your AR aging report. If you track cash flow manually, update your spreadsheet. If you use accounting software, export from Chaser and import to reconcile.

🧾 Check tax implications

For VAT-registered businesses: the VAT on this invoice may now be due for the current VAT period. Track it for your quarterly VAT return. For income tax: record the income in your tax tracking spreadsheet.

Payment Confirmation Email Template

Subject: Payment received — Invoice #[NUMBER] — Thank you!

Hi [Client Name],

Thank you — I've received your payment of [AMOUNT] for invoice #[NUMBER].

Everything is squared away on my end. It was great working with you on [PROJECT], and I look forward to working together again.

Best,
[Your Name]

What to Do If Payment Is Partial

A short payment (where a client pays less than the invoiced amount) is not automatically acceptable — even if you were just relieved to receive something.

Contact the client to clarify

Ask why only part was paid — was it a mistake, a dispute, or financial difficulty?

Issue a credit note if a discount was agreed

If you agreed to reduce the invoice (e.g. after a dispute), issue a formal credit note for the difference.

Issue a new invoice for the remainder

If the short payment was a mistake or instalment, issue a new invoice for the remaining amount with a clear due date.

Document everything

Keep records of all communication about the short payment in case it becomes a future dispute.

What If the Wrong Amount Was Paid?

💰 Overpayment

1. Contact the client to confirm the overpayment
2. Refund the difference promptly
3. Send written confirmation of the refund
4. Mark the original invoice as paid for the correct amount

⚠️ Short Payment

1. Contact client to clarify the reason
2. If agreed: issue credit note for the difference
3. If error: issue new invoice for the remainder
4. Mark original as partially paid — track the balance

Keeping Records After Payment

Country	Legal retention period	What to keep
🇪🇺 EU (general)	7 years	Invoice + proof of payment + VAT records
🇳🇱 Netherlands	7 years	Facturen + bank statements (BTW records)
🇬🇧 UK	6 years	Invoices + receipts (HMRC requirement)
🇩🇪 Germany	10 years	Buchungsbelege (commercial code)
🇺🇸 US	3–7 years	Varies by state — 7 years is safe standard

Store invoices in cloud storage (Google Drive, Dropbox) or use invoicing software with built-in archiving. Chaser keeps all your invoices accessible forever — export to CSV or PDF at any time.

How Chaser Marks Invoices as Paid

⚡

Stripe webhook — automatic: When your client pays via the Stripe payment link, Chaser marks the invoice as paid instantly. No manual action needed.

👆

Manual — Mark as Paid button:For bank transfers and other payment methods, click “Mark as Paid” on any invoice in your Chaser dashboard. This immediately stops all automated reminders.

Try Chaser Free →

Frequently Asked Questions

What should I do when an invoice is paid?

Verify the full amount, match to the invoice number, mark as paid in your system, send a confirmation email, archive the invoice, and update your accounts receivable.

How long should I keep paid invoices?

EU: 7 years. UK: 6 years. Germany: 10 years. US: 3–7 years (7 is safest). Keep the invoice AND proof of payment.

What if a client paid the wrong amount?

Overpaid: contact client and refund the difference. Underpaid (short payment): contact client to clarify, then issue a credit note if agreed or a new invoice for the remaining amount.

Should I send a receipt after an invoice is paid?

Yes — a brief payment confirmation email is professional, closes the loop, and prevents future disputes. It takes 30 seconds and builds client trust.

Do I still owe VAT on a partially paid invoice?

Generally yes — VAT is typically due on the invoice date (not payment date) in most EU countries. Check with your accountant for your specific situation.

From Invoice Sent to Invoice Paid — Faster 🐕

Chaser automates reminders so invoices get paid faster. And when they are paid, marks them automatically via Stripe webhook.

Try Chaser Free