Start with these five checks.
- Reconcile invoices and receipts to the ledger.
- Compare invoice cohorts with mature payment windows.
- Separate contractual terms from actual delay.
- Classify disputes, acceptance and billing defects.
- Measure collection action timing and outcome.
Ask for only what can change the answer.
- InvoicesIssue date, due date, amount and terms
- ReceiptsDate, amount, match and currency
- CustomerSegment, contract and concentration
- DisputesReason, owner, age and status
- CollectionsContact, promise and follow-up
- LedgerCredits, write-offs and cutoffs
Test one reversible move.
Select one overdue cohort with a common controllable delay, such as unresolved disputes or missing acceptance evidence. Introduce a bounded triage and owner path, then compare collected cash, days to resolution and customer escalations with a matched prior cohort. Reverse if credits, disputes or relationship risk increase.
A decision your team can use.
- 01A cohort-based collection view
- 02A dispute and delay taxonomy
- 03Cash opportunity by confidence
- 04A bounded workflow test
Common questions.
Why not use DSO alone?
Mix, growth and invoice timing can move DSO for different reasons; invoice cohorts show the actual delay.
Should collection activity be increased everywhere?
No. Prioritize by cause, recoverability, customer value and contractual position.
How are disputes treated?
Track them as a separate state with reason, owner, evidence and age instead of mixing them with ordinary overdue invoices.