Use your data to get invoices paid before they go overdue

Goal: Accelerate cash inflows by proactively managing receivables so you avoid late payments and preserve runway.

Dashboard Setup & Priority

Suggested Dashboard: Receivables Management

Widgets:

Aging by Days (0–30, 31–60, 61–90, 90+ days)

Top 10 Unpaid Invoices (by amount and days outstanding)

Days Sales Outstanding (DSO) trend

Receivables Forecast (expected cash by date)

Criticality: High-Impact — prevents cash shortfalls

Cadence: Every business day (5 minutes)

Core Principle

DSO = (Outstanding Receivables ÷ Total Credit Sales) × Number of Days

Five-Minute Routine

Review Aging Snapshot (≈ 1 min)

Identify invoices entering the 0–30 day bucket that are due within the next 7 days.

Note any large invoices (top 10) on the cusp of aging into 31–60 days.

Calculate Short-Term Cash Inflow (≈ 1 min)

From your Receivables Forecast, sum the amounts due in the next 7 days.

Compare against your expected outflows over the same period to gauge pressure.

Spot High-Risk Accounts (≈ 1 min)

Flag customers whose average payment days exceed your terms (e.g., they pay in 45 days on net-30).

Prioritize those with large balances and habitual lateness.

Automate or Personalize Reminders (≈ 1 min)

For standard accounts, trigger an automated reminder 7 days before due date.

For high-risk or key clients, send a personalized email or make a quick call.

Offer Early-Pay Incentive (≈ 1 min)

For invoices > $5K or at-risk customers, propose a small incentive:

Example: “Pay within 5 days to receive a 1.5 % discount.”

Record agreed-upon terms in your system to track uptake.

Control Limits & Key Metrics

Condition	Immediate Response
Invoices due in ≤ 7 days > 20 % of AR	Trigger both automated reminders and personalized outreach
Customers with avg. payment days > term	Escalate to account manager for follow-up
DSO > 35 days (or your industry benchmark)	Review credit policies and consider tighter terms

Track Daily:

Number and value of invoices due within 7 days

DSO (Days Sales Outstanding)

% of receivables due soon vs. total AR

Uptake rate on early-pay incentives

Habit Formation

Daily Ritual: Set a 5-minute “Receivables Check” in your calendar; enable alerts when key thresholds are crossed.

Weekly Review: Every Monday, evaluate DSO trends and refine reminder cadence or incentive levels.

Real-World Example

A manufacturing firm had $120K in invoices due next week, 30% of total AR. Automated reminders went out for all, while the credit manager personally called the two largest overdue accounts. One customer took the 1.5% early-pay discount and released $45K within three days—significantly easing the week’s cash flow demands.