Cash Collection

A structured accounts receivable collection process for overdue invoices. Takes about 45-90 days from first reminder to resolution. Best suited for AR specialists, credit managers, and finance teams who need to collect outstanding payments while maintaining client relationships. Covers the full escalation path from friendly reminders through legal action decisions.Timeline: 45-90 days from invoice due date to resolution Best for: AR specialists, credit managers, finance teams Escalation path: Friendly reminder - Contact - Dispute resolution - Second reminder - Legal decision Key outcomes: Faster cash recovery, documented collection history, preserved client relationships

10 steps

Accounting Accounting

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Process steps

Send first payment reminder (45 days overdue)

3 days from previous step

task

It's been 45 days since the invoice was issued, so it's time to send a friendly reminder. Keep the tone professional but warm - this is often just an oversight. Send an email to {{client-consultant-name-207683}} at {{client-consultant-company-207692}} noting that payment hasn't arrived yet. Client details: Name: {{client-consultant-name-207683}} Company: {{client-consultant-company-207692}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}} Give them 7 days to respond before escalating.

Check if payment arrived after first reminder

10 days from previous step

task

Check your accounts receivable to see if {{client-consultant-name-207683}} has paid. Sometimes payments cross in the mail or get processed slowly. If payment's in, great - mark this done and close out the collection process. If not, we'll need to dig deeper into why they haven't paid. Client details: Name: {{client-consultant-name-207683}} Company: {{client-consultant-company-207692}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}}

Contact client to resolve any payment disputes

14 days from previous step

task

Time to pick up the phone. Call {{client-consultant-name-207683}} at {{client-consultant-mobile-207695}} or email {{client-consultant-email-207691}} to find out what's going on. Maybe there's a dispute about the work, or their AP department lost the invoice. You've got 48 hours to sort this out - document everything they tell you. Client details: Name: {{client-consultant-name-207683}} Mobile: {{client-consultant-mobile-207695}} Email: {{client-consultant-email-207691}} Company: {{client-consultant-company-207692}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}}

Fix any booking errors or issue a corrected invoice

17 days from previous step

task

If there was a mistake on our end - wrong amount, wrong PO number, whatever - fix it now. Correct the entry in your books and send {{client-consultant-name-207683}} a fresh invoice that's accurate. Don't let a clerical error become the reason you don't get paid. Double-check everything before sending. Client details: Name: {{client-consultant-name-207683}} Company: {{client-consultant-company-207692}} Invoice #: {{invoice-number-207687}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}}

Issue credit notes or send amended invoice

20 days from previous step

task

The client has a valid dispute, so we need to make it right. Issue a credit note for any incorrect charges or send an amended invoice that reflects what they actually owe. Be specific about what changed and why. This clears the path for them to pay what's really due. Client details: Name: {{client-consultant-name-207683}} Company: {{client-consultant-company-207692}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}}

Verify payment after resolving disputes

30 days from previous step

task

Now that we've sorted out the dispute and issued corrected paperwork, check if {{client-consultant-name-207683}} has paid. Give them reasonable time - they might need to re-process the payment through their system. If the money's in, close this out. If not, we're moving into more serious collection territory. Client details: Name: {{client-consultant-name-207683}} Company: {{client-consultant-company-207692}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}}

Send second reminder (60 days overdue)

35 days from previous step

task

We're at 60 days now, so it's time to turn up the pressure a bit. Send {{client-consultant-name-207683}} a firmer reminder - still professional, but make it clear this is serious. Follow up with a phone call too. Keep notes on every conversation because you might need them later. Client details: Name: {{client-consultant-name-207683}} Mobile: {{client-consultant-mobile-207695}} Email: {{client-consultant-email-207691}} Company: {{client-consultant-company-207692}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}}

Check payment status after second reminder

45 days from previous step

task

After the 60-day reminder and follow-up calls, check if {{client-consultant-name-207683}} has finally paid. This is a critical decision point - if they've paid, we're done. If not, we need to decide whether to escalate to legal action or write off the debt. Don't drag this out indefinitely. Client details: Name: {{client-consultant-name-207683}} Company: {{client-consultant-company-207692}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}}

Decide: pursue legal action or write off the debt

60 days from previous step

task

Crunch time. Do we keep chasing {{client-consultant-name-207683}} or cut our losses? Consider the amount owed versus the cost of legal action. If it's worth pursuing, prepare to take them to court. If the amount is small or they're clearly unable to pay, it might make more sense to write it off and move on. Decision options: - Yes: Proceed with legal/court action - No: Write off the debt as uncollectable Client details: Name: {{client-consultant-name-207683}} Company: {{client-consultant-company-207692}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}}

Close out the collection process

90 days from previous step

task

Wrap things up. Whether {{client-consultant-name-207683}} paid in full, we negotiated a settlement, or we've decided to write off the debt - document the outcome. Update your AR records, file any relevant correspondence, and note the resolution for future reference. Close this process so it doesn't linger on your books. Final client details: Name: {{client-consultant-name-207683}} Company: {{client-consultant-company-207692}} Invoice: {{invoice-207686}} PO: {{purchase-order-207685}} Terms: {{payment-terms-207688}}