Sales Are Up, Cash Is Late: Fix Collections Workflow

The business problem

A sale is not cash in the bank. A company can report growth while struggling to pay suppliers because invoices are incomplete or collections are poorly coordinated. This is a cross-functional operating problem before it is a software problem.

Warning signs

Check delays in issuing invoices, undocumented payment terms, incorrect customer details, and invoices delivered to the wrong contact. If finance chases every customer without involvement from the relationship owner, collections may deteriorate.

A practical implementation plan

Design the full path: approved order, delivery evidence, accurate invoice, receipt confirmation, pre-due reminder, overdue follow-up, and dispute resolution. Each step needs an owner, target date, and recorded reason for exceptions.

Related perspective: Procurement Without Chaos: Request, Approve, Receive

An SME example

In an illustrative service firm, twelve invoices were delayed because signed acceptance records were missing. Making acceptance evidence a prerequisite surfaced the real issue upstream. Collections often improve before the accounts team even sends a reminder.

How to measure results

Track days sales outstanding (DSO), aging balances, disputed invoice ratio, and invoice issuance delay. Review the largest overdue accounts weekly and assign a specific next action with ownership.

Mistakes to avoid

Do not pressure a client before checking invoice correctness or delivery acceptance. Avoid verbal payment promises without records, uncontrolled settlement discounts, and endless blame between sales and finance.

Your next action

Produce an aging report today, select the five largest overdue invoices, and map the reason behind each. Fix the repeated workflow failure, then introduce sensible reminders and escalation ownership.