Accounts Receivable Checklist
💡 Tip:
When processesing your accounts receivable, make sure you’ve covered all of these key elements;
💲Invoicing:
Ensure that all necessary information is included, such as:
- invoice number
- customer details
- itemized descriptions
- quantities
- prices
- and payment terms
🧾 Payment Receipt:
- Incoming payments are matched to corresponding invoices
- Accounts receivable ledger has been updated
- Payment details are accurate (amount/method of payment/date received)
⚖️ Reconciliation:
- Customer accounts are reconciled to accounts receivable balances alongside corresponding customer statements/records
- Identify any discrepancies (unapplied payments/outstanding credits)
- Resolve discrepancies
🫴 Collections:
- Send payment reminders
- Chase overdue payments
- Initiate collection activities when necessary
📈 Reporting and Analysis:
- Create & generate regular accounts receivable reports
- Track status of outstanding balances/aging of invoices/overall cash flow
- Analyze data for payment trends
- Identify potential risks
Overdue Invoice Templates
💡 Tip:
Use the below templates to chase overdue payments for your business.
1st overdue courtesy email
Subject: Gentle Reminder: Overdue Invoice [Invoice Number]
Dear [Client’s Name],
I hope this email finds you well. I am writing to bring to your attention that Invoice [Invoice Number], which was due for payment on [Due Date], remains outstanding.
We understand that unforeseen circumstances may arise, and we are more than willing to work with you to find a solution. However, timely payment is crucial for the smooth functioning of our operations.
To facilitate the resolution of this matter, we kindly request that you review the invoice details attached to this email and process the payment at your earliest convenience. If there are any issues or concerns regarding the invoice, please do not hesitate to reach out to us. We are committed to addressing any questions or concerns you may have.
Please find the invoice details attached for your reference.
[Attach Invoice]
Thank you for your prompt attention to this matter. We greatly value your partnership and appreciate your cooperation in ensuring that our financial transactions remain up to date.
If the payment has already been processed, kindly disregard this email. Otherwise, we appreciate your prompt attention to this matter.
Best regards,
[Your Full Name]
[Your Position]
[Your Company Name]
[Your Contact Information]
2nd overdue invoice chaser email
Subject: URGENT: Immediate Action Required – Overdue Invoice [Invoice Number]
Dear [Client’s Name],
I trust this email finds you well. We are writing to address a matter that requires your immediate attention.
Despite our previous communications, it has come to our notice that Invoice [Invoice Number], with a due date of [Due Date], remains unpaid. Timely settlement of invoices is essential to maintain the financial health of our organization, and the continued delay is placing an undue strain on our operations.
We understand that unforeseen circumstances may arise, but we must stress the importance of resolving this matter urgently. Attached to this email, you will find a copy of the overdue invoice for your reference.
[Attach Invoice]
We kindly request that you process the payment without further delay. Failure to address this matter promptly may result in additional charges and could impact our ability to provide uninterrupted services.
If you are facing challenges or have any concerns regarding the invoice, please communicate with us at the earliest convenience so that we can work together to find a resolution. Open communication is crucial in such situations, and we are committed to understanding and addressing any issues you may be facing.
Your immediate attention to this matter is imperative. We appreciate your cooperation and expect the payment to be processed by [Specify a New Deadline, e.g., within the next 5 business days].
Thank you for your prompt action on this matter. Should you have any questions or require further clarification, please do not hesitate to contact us.
Best regards,
[Your Full Name]
[Your Position]
[Your Company Name]
[Your Contact Information]
Best Practice Tips
We recommend attempting to call the customer to resolve the situation, however if you have received no response or solution within 45 days, you may wish to send a certified letter through your lawyer.
Here are some best practice strategies to help you refine your accounts receivable process;
- Use electronic billing & online payments to make payments easy for customers.
- Decide on the right KPI’s to measure your A/R process.
- Outline clear billing procedures.
- Set up automation to reduce manual processes when possible.
- Set up a performance monitoring process to track your accounts receivable.
- Document your payments process e.g.
- Document your collections policy with regard to dates.
- Make a list of all the payment methods your business accepts.
- Highlight all internal processes needed.
- Review your accepted payment method list and record all the processing options.
- List all the tools used to record and process payments.
