Receivables
AR follow-up workflows that lower DSO
· 5 min read
A predictable cadence of reminders beats ad-hoc chasing every time. We share the sequence and tone that gets invoices paid without straining the relationship.
Ad-hoc chasing trains customers to wait
If invoices go quiet until someone is angry about cash, customers learn that terms are optional. DSO creeps up not because the product is wrong, but because collections are improvised. A written cadence is cheaper than heroics.
The goal is not aggressive collections. The goal is a boring, expected sequence that starts before the invoice is late.
A cadence that actually gets used
Day 0: invoice sent with clear terms and a payment link or instructions. Three days before due: a polite reminder with the invoice attached again. Day 1 past due: a direct note asking if anything is blocking payment. Day 7: a call or a note to the economic buyer, not only AP. Day 14: pause new work if that is your policy, and say so.
Tone stays factual. Include invoice number, amount, due date, and how to pay. Do not mix in a sales update. The easier you make it to pay, the less 'we never got it' you will hear.
Own the exceptions in the system
Disputes, missing POs, and 'send it to a different email' should live on the invoice record. If they live in inboxes, the next reminder will repeat a resolved issue and you will look disorganized.
Modern Accounting AI is built for this workflow: branded invoices, stated terms, and follow-up that can run without someone rebuilding the aging report in a spreadsheet every Monday.