What are we measuring: Invoices that are 31 days or more past due.
Why are we measuring this: Accounts receivable is the lifeblood of business’s cashflow.
Scoring: N/A
Recreate Metric: Invoice Module – Receivables. Filter Balance greater than 0. (Make sure you display 31-60, 61-90, 91+, sum these columns).
False Negatives:
- Incorrect Invoice Terms - its important to audit terms regularly to ensure aging days match your contract agreements
Common Issues:
- Slow payment input (receiving payments and not applying timely)
- Lack of process standardization
Practical:
- Utilize Collections Notes (Using Collection, Invoice, Payment, and Statement Notes) - Track your efforts
- Set standards for when to stop work at a property, when to send to collections
- Get multiple people involved in collection escalations (billing admin, account manager, sales manager, operations manager, branch manager)
- Create multiple lists in invoices tab for various aging days categories (see below for list build ideas)
Resources
- Navigation in Receivables
- How to Set Up Aspire to Email Invoices to Customers
- Bulk Emailing Your Customers with Aspire
- See below for Sample AR Process
Sample AR process
- Aging Day 0 - Invoice sent
- Aging Day 30 - Resend original Invoice - Create template saved in text editor and use for bulk email language. Utilize list in Invoices tab
- Aging Day 40 - Accounts Receivable Outreach - first phone call
- Aging Day 45 - Increase language intensity - bulk email
- Aging Day 50 - Account Manager Outreach - Email/Phone Call Services Stop
- Aging Day 60 - Email - From Branch Manager - Reference Stopping Services in 30 days
- Aging Day 70 - Accounts Receivable Outreach - first phone call
- Aging Day 80 - Branch Manager Call
- Aging Day 89 - Sales Manager Final Call
- Aging Day 90 - Services Stop
- Aging Day 100 - Accounts Receivable Final Call
- Aging Day 110 - Bulk Email Final Message
- Aging Day 119 - Branch Manager Final Call
- Aging Day 120 - Send to Collections
