Accounts receivable management—getting your invoices paid on time—is one of the most impactful operational improvements a small business can make. A business with 60-day DSO (days sales outstanding) and one with 30-day DSO have dramatically different cash positions even if their revenue and profitability are identical.
Invoice Immediately
Invoice on the day work is delivered, not weekly or monthly. Every day between delivery and invoice is a day the payment clock is not running. Automated invoicing on delivery is the gold standard—set it up in your accounting software so it happens without manual intervention.
Make Payment Frictionless
Accept every major payment method. The harder you make it to pay, the longer it takes. Electronic ACH payments, credit cards, and services like Bill.com or Stripe dramatically reduce the friction between a customer deciding to pay and the money actually arriving in your account.
Follow Up Systematically
An automated reminder sequence—seven days before due, on the due date, seven days after—handled by your accounting software eliminates the awkwardness of manual follow-up and dramatically improves collection rates. The key is automating it so it happens consistently regardless of how busy your team is.
Key Takeaways
- Invoice on the day of delivery—every delay pushes your payment date back by the same amount.
- Make payment as frictionless as possible: multiple payment methods, online payment links.
- Automated reminder sequences at -7, 0, and +7 days improve collection rates significantly without requiring manual follow-up.
