When clients pay late, it feels like a small delay. In reality, it affects everything. Payroll. Bills. Growth plans. Your own paycheck.
You earned the money.
You just don’t have it yet.
Accounts receivable (AR) tells you who owes you, how long they’ve owed you, and whether your business is running smoothly or struggling to breathe.
Ask yourself:
Are you waiting for payments, or are payments arriving on time?
Here’s why AR matters and how to manage it well.
Late payments drain your cash
- You can’t pay vendors on time
- You delay payroll or owner draws
- You borrow or use credit to fill gaps
Cash flow keeps a business alive. When AR sits unpaid, your cash dries up even if sales look strong.
Strong AR habits create stability
- You know what’s coming in
- You plan spending with confidence
- You avoid last-minute stress
When you track payments closely, you protect your business from surprise shortages.
Warning signs your AR is out of control
- Clients often pay late
- You don’t review aging reports
- You notice cash issues even during good sales months
- You send invoices but rarely follow up
If any of these feel familiar, your cash flow may be at risk.
Simple steps to get paid faster
Send invoices right away
- Delayed invoicing leads to delayed payment
- Automate invoicing when you can
Add clear payment terms
- State due dates
- Include late fees if it fits your business
Follow up consistently
- Remind clients before due dates
- Send a polite notice the day a payment is late
Offer multiple payment options
- Credit card
- ACH
- Online payment links
Make paying easy and you speed up cash flow.
Track your AR weekly
- Review who owes you
- Prioritize follow-ups
- Set reminders to check aging balances
Small check-ins prevent big problems.
When you treat AR as a priority, you protect your cash and your peace of mind. You don’t guess. You don’t wait. You stay in control.
If you want support managing invoices and cash flow, explore Cheryl’s bookkeeping services or reach out through the contact page to keep money moving into your business on time.
