With small business confidence down and concerns over tariffs and inflation rising, expenses are increasing for many companies. This means the risk of delinquent payments becoming a problem for your business may be very real.

If you haven’t been able to keep up with your bills lately, know that it’s understandable. However, it is essential to start taking steps now to eliminate tardy payments and any penalties to avoid even more financial issues down the road.

 Your 5-step “ditch delinquent payment” action plan

1. Put autopay into place

Authorize your creditors to automatically charge payments to your card or bank account on a certain date. If you do this, pay the full amount each month to avoid interest.

2. Check your bank balance

Make sure you have enough funds in your account to cover autopayments and avoid overdraft fees.

3.  Prioritize payments

If you have to choose which payments to make, go with the highest interest bill first after covering utilities and essentials. Late credit card payments can affect your credit score for up to 7 years.

4. Set payment reminders

Use digital calendar reminders, text or email alerts rather than relying on memory.

5.  Pay more frequently

Making weekly instead of monthly payments can help with cash flow and budgeting to avoid late fees. You may be inclined to spend less with regular payment tracking.

How to handle delinquent tax payments

Late tax payments come with steeper penalties than regular bills. The IRS will work with you on a payment plan if you cannot pay in full by the due date. Be upfront, proactive in negotiating, and try to make up late payments quickly.

Common options for late taxes:

• Installment agreement to pay over time

• Offer in compromise for a reduced lump sum

• Temporary delay in collection

It is highly recommended that you work with a tax professional if you receive IRS notices or have delinquent tax payments. Be sure to reach out if you need assistance with tax payments or understanding how to respond to tax notices you may receive.

Plan ahead to eliminate delinquent payments

Late payments cost you money and stress across the board. Follow the plan above to avoid being delinquent. And, of course, our firm is here to help, so be sure to reach out if you have questions or need assistance.