AR Follow-Up & Collections

Collection emails sent per aging bucket with confirmation logged in accounting system. AR aging report updated with last-contact date and next-action date per invoice. Weekly AR summary delivered to finance lead. Payments matched to invoices in accounting system same day received. Escalation log: any invoice reaching Day 30+ documented with all prior communication history.

Before you start

AR aging report available from accounting system
Collections escalation policy defined (what happens at Day 7, 14, 30, 60)
Client contact information current in accounting system
AR aging report (invoice number, client, amount, due date, days overdue)
Prior collection activity per invoice (if any — previous emails, call notes)
Client relationship context from account manager (any payment plan agreements, disputes, or at-risk accounts)

The steps

Pull and segment AR aging report — Export the aging report and split it: current, 1-7 days over, 8-14, 15-29, 30-59, 60+. Sort each bucket by amount so the largest gets attention first. Pull out disputed invoices — they follow a resolution path, not collections.
Day 7 — first reminder (friendly) — At seven days, assume it slipped through their AP queue and write like it. Name the invoice, the amount, the due date, say to disregard if payment is already moving, and give the payment link. Keep the word overdue out of it.
Day 14 — second follow-up (direct) — At fourteen days with no reply, shift from friendly to businesslike: the invoice is fourteen days past due, when can you expect payment, and is there a question about it you can help resolve. Copy the account manager now, before anything escalates.
Day 30 — escalation call or formal notice — At thirty days, call the AP contact. No answer means a voicemail and a formal email naming a resolution date seven days out. Tell the account manager and finance lead, and log the attempt.
Day 60 — final notice and hold — At sixty days, send a formal final notice with read receipt, copying the account manager and finance lead: service pauses on a named date ten days out and the account is under review. No legal language unless the finance lead has approved it. Ask the account manager to have the relationship conversation separately.
Process payments and update AR — Match each payment to its invoice. Partial payments go to the oldest first unless the client says otherwise — note the balance and send a confirmation with an updated statement. Clear it from the overdue queue and log the date and method.
Report AR status to finance lead — Weekly to the finance lead: total outstanding, overdue by bucket, collected this week, how many invoices sit at each stage, and anything past 60 days for CFO review. Name any client with several overdue invoices and no response, and flag write-off candidates past 90 days.

If it goes wrong

Client claims they never received the invoice — multiple follow-ups ignored

Re-send original invoice with a read receipt. Confirm the AP email address with the client's primary contact. For large invoices, offer to deliver via their vendor portal (Coupa, Ariba) if they use one.

Payment received but not matched — invoice stays in overdue queue

Review bank feed daily for unmatched deposits. If a payment arrives without an invoice reference, contact the client within 24 hours to identify which invoice it covers. Never leave unmatched payments in suspense longer than 48 hours.

Collections email damages client relationship — account manager complains

Implement a 'hold' flag in the AR system that account managers can set for relationship-sensitive accounts. When flagged, escalate to account manager for handling rather than sending standard template. Run a monthly review to ensure hold flags don't result in chronically uncollected AR.

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