What unpaid invoice records should a musician keep?
Published · Updated · Clef
Keep the signed gig agreement, original invoice, payment evidence and dated follow-ups together. Work out what remains unpaid and record whether the client disputes the amount or has proposed a payment date. If the debt may be uncollectible, bring that evidence to your accountant before changing the invoice or claiming a deduction.
How do you establish what is actually overdue?
Compare the invoice with the agreement and any written changes. Check the client name, the invoice number, when the amount was due and which work it covers. Look for deposits, part payments, credits or a payment applied to a different invoice. Write down the unpaid balance and the date you checked it.
In Clef, the Invoices page offers an Overdue status filter. The table displays the invoice number and due date. Use those details to identify the record, then compare it with your agreement and payment evidence. If you are looking for an older invoice, widen the date filters so the current month does not narrow the list.
Which follow-up records are useful?
Keep the invoice delivery record and the client’s replies in date order. Make a short note of each reminder, any payment promise and any dispute about the fee. If the client says the bill is wrong, preserve their explanation and the original invoice so the reviewer can distinguish a possible billing correction from a collection problem.
When a deposit or part payment arrives, retain the bank or processor reference and connect it to the original invoice. A follow-up can then state the remaining balance clearly. If a later email changes the payment terms, save that message alongside the original terms.
How would you document a late gig balance?
Constructed example in CAD. A musician invoices $750 for a completed performance. The client pays $250 against that invoice. The remaining $500 passes its due date, and the client emails a later payment date. The musician keeps the payment confirmation, dates the client’s promise and records the $500 as the amount to review.
If the promised date passes too, update the timeline with what happened. The open balance and missed dates explain why you are reviewing the invoice. They do not on their own establish when a debt became uncollectible. If the client disputes the original fee, flag that issue separately and keep any relevant agreement or correspondence.
| Record | What to show the reviewer |
|---|---|
| Agreement and original invoice | Agreed performance, fee, invoice number and due date |
| Part payment | $250 received and the matching payment reference |
| Outstanding balance | $500 still unpaid as of the date checked |
| Client correspondence | Original due date, revised promise and any dispute |
When should you ask about bad-debt treatment?
For a Canadian sole proprietor, the CRA’s guidance for line 8590 says an amount is generally deductible as a bad debt if the receivable was already included in income and was determined to be bad in the year. Bring the income record, the outstanding amount and the evidence bearing on collectability. Ask your accountant to review whether the conditions are met and which year applies.
Keep a record of any later recovery. The CRA says an amount recovered after being written off as a bad debt in a prior year is included in current-year income. A recovery can also have GST/HST implications, so keep the original write-off and payment records together and ask the reviewer how to handle them.
What else should I know?
Does an overdue status make an invoice a bad debt?
An overdue status helps identify an invoice for follow-up. Review the evidence about whether it can be collected and confirm the prior income treatment before making a tax decision.
What if the client offers a payment plan?
Save the plan and track each payment against the invoice. Give the reviewer the dates and amounts actually paid along with anything still outstanding.
What if I sent the same invoice twice?
Keep the delivery history and confirm whether both messages referred to the same bill. Check the invoice numbers and work covered before counting more than one balance.
Should I change the status to Paid to clear the list?
Review settlement evidence first. If the balance remains outstanding, take the invoice and follow-up records to your accountant for the appropriate next step. The related client payment guide explains the full-settlement review.