Quick answer
Collection delays are usually upstream of AR: missing POs, wrong bill-to entities, partial completions without change orders, and invoices that do not match what the customer approved. Strong operators validate billing readiness before work closes, attach approver metadata, and automate polite follow-ups tied to due dates.
Context
Equipment-centric jobs add complexity: multiple sites, asset tags, and milestone billing. Finance cannot “AR harder” if the field record is ambiguous.
This use case focuses on the operational bridge between completion quality and payable invoices—where most DSO wins actually live.
Operational playbook
Workflow-oriented sequence your team can adapt—tie each step to ownership in dispatch, field, and back office.
Billing readiness gate
Check PO on file, bill-to entity, tax flags, and completion evidence before technicians leave complex jobs.
Line-item discipline
Tie invoice lines to approved quotes and completion codes; avoid narrative-only invoices for enterprise customers.
Portal + payment links
Reduce friction for smaller balances; route large balances to documented approvers.
Cadence, not drama
Automate reminders with tiered escalation; measure response time by customer segment.
Root-cause weekly
Top 10 late pay reasons should feed dispatch and project templates—not only AR spreadsheets.
KPIs to run it
Pick one primary and one diagnostic metric per quarter—avoid dashboards that move faster than behavior change.
Invoice defect rate
Defective invoices restart the clock and erode trust.
How to measure
% of invoices reissued or credited within 14 days of first send.
Days sales outstanding (DSO)
Cash predictability for hiring, inventory, and seasonality buffers.
How to measure
Standard AR aging by invoice class; exclude disputed buckets when tagged.
% invoices sent within 24h of completion
Latency is a choice; faster invoices reduce forgotten-context disputes.
How to measure
Time delta from verified completion to first customer-facing invoice timestamp.
Related product areas
Glossary
Workflows
Playbooks & guides
FAQ
- Should collections own billing readiness?
- AR owns follow-up, but operations must own completion and documentation standards. Split responsibilities explicitly to avoid blame loops.
- What is a realistic first 30-day target?
- Reduce invoice defect rate and shorten send latency first—DSO often follows once invoices are payable on arrival.