Field notes
Reading your debtor ageing without panic
Many owner-managers open the debtor ageing only when cash feels tight. By then, the oldest columns already tell a story that started weeks earlier.
Start with three bands: current, 30–60 days, and everything older. Ask who owns follow-up for each band. If the answer is “whoever has a spare minute,” cash will keep slipping.
A practical habit: every Monday, mark three accounts to call before midday. Keep notes in the same place as the invoice list so the next person can continue without hunting emails.
During a financial process review we often find that credit terms printed on invoices differ from what sales staff promise verbally. Aligning those two statements alone can shorten average collection days.
If a customer repeatedly sits past 60 days, decide a clear pause point for new work. Soft conversations early beat awkward stand-offs after materials are already ordered.