TL;DR: Managing accounts receivable well is the difference between having cash in the bank and having cash on paper. This checklist covers the key actions every small business should take to stay on top of collections and minimise overdue invoices.
Before You Invoice
- ☐ Confirm payment terms are agreed in writing before work begins
- ☐ Verify client contact details and correct billing entity
- ☐ Check if the client requires a purchase order number
- ☐ Agree on invoicing milestones for larger projects
When You Invoice
- ☐ Invoice immediately when goods are delivered or services rendered
- ☐ Include a specific due date (e.g. "Due 14 March 2026") not "Net 30"
- ☐ Itemise clearly — vague invoices cause queries and delays
- ☐ Include your payment details (bank account, BPAY, or payment link)
- ☐ Attach supporting documents if required (timesheets, delivery notes)
- ☐ Send to the correct person — accounts payable, not just your main contact
After You Invoice
- ☐ Send a friendly reminder 3–5 days before the due date
- ☐ Follow up within 3 days of the due date if unpaid
- ☐ Escalate at 14 days overdue — phone call, not just email
- ☐ At 30 days overdue, send a formal overdue notice
- ☐ At 60 days overdue, consider pausing further work until paid
- ☐ At 90+ days, assess whether to engage a collections agency
Weekly Accounts Receivable Habits
- ☐ Run your debtor ageing report every week
- ☐ Review the 30+ day column — who needs follow-up?
- ☐ Track your Days Sales Outstanding (DSO) monthly
- ☐ Note repeat late payers and consider adjusting their terms
Structural Improvements
- ☐ Offer multiple payment methods (bank transfer, card, direct debit)
- ☐ Consider deposits or upfront payments for new clients
- ☐ Use automated invoice reminders in Xero, MYOB, or QuickBooks
- ☐ For persistent 30–60 day gaps, consider invoice finance to access funds immediately
Bridging the Gap
Even with excellent AR management, payment terms create a cash flow timing gap. If your customers consistently pay on 30+ day terms, invoice finance lets you access that cash immediately. With Fundtap, you choose which invoices to fund, receive an advance within hours, and pay a single fee from 4%.
See how Fundtap works →