High AR means you’ve done the work but haven’t been paid. Managing AR effectively is the difference between healthy cash flow and constant stress.
Set Clear Payment Terms
Net 30 is common, but Net 15 or due on receipt may be appropriate. Communicate clearly on every invoice.
Invoice Promptly
Send invoices the day work is completed. Every day of delay adds to your collection timeline.
Make It Easy to Pay
QBO allows Pay Now buttons on invoices accepting credit cards and ACH.
Follow Up Systematically
Automate reminders: 3 days before due, on due date, 7 days past due, 30 days past due.
Review AR Weekly
Run an aging report weekly. Anything over 60 days requires direct attention.
Disclaimer: The information provided is for general educational purposes only and does not constitute tax, legal, or investment advice. This content is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Tax outcomes depend on your specific facts and circumstances. Viewing this material does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.
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