10 Ways to Improve Your Collections: How CFOs Help You Get Paid Faster

You did the work three months ago. Delivered the services perfectly. The customer loved it. You sent the invoice for $47,000. It's been a month and you're still waiting for payment. You've sent three polite "payment reminder" emails with no response. You're uncomfortable calling because you don't want to damage the relationship. Meanwhile, you've already paid your team who did the work and the vendors for materials. You desperately need that $47,000 to make next week's payroll.

The pattern repeats across your accounts receivable. $280,000 sitting in unpaid invoices. Some 30 days old. Some 60. Some 90+. You did the work. You earned the money. But you can't access it. Welcome to the collections problem that's quietly strangling your business.

The numbers are staggering. The average business has 15-20% of its revenue tied up in accounts receivable at any given time. For a $2M revenue company, that's $300,000-$400,000 you've earned but can't use. Money you need for payroll, growth, investments, or just sleeping at night.

But here's the good news. This is completely fixable. It's not about being more aggressive or damaging relationships. It's about having professional systems for managing collections. This guide shows you exactly how CFO services transform collections from a frustrating mess into a smooth, predictable process.

Why You're Not Getting Paid (And It's Not Because Customers Are Bad)

Let's start with an uncomfortable truth. Your customers aren't paying because you're making it easy not to.

Your invoice says "Net 30" but there's no consequence for paying on day 60, so they do. They're managing their own cash flow by delaying your payment, using your money interest-free.

You send invoices but never follow up. That $47,000 invoice? The customer's AP person filed it, then forgot about it. Nobody's calling to ask for payment, so it sits.

Your invoices are unclear or have errors. Wrong PO number. Incorrect pricing. Missing details their system needs. They email requesting corrections. You fix it. Send a revised invoice. Another 30 days starts.

You have no collection process. Invoice goes out. Then you get busy with other things and do nothing. You eventually send a "friendly reminder" when you notice it's been 60 days. The customer ignores it. You send another reminder. Still nothing. You finally call awkwardly. The customer says "oh sorry, we'll process it." Another 15 days pass, then you get the payment.

None of these happen because customers are bad. They happen because you don't have professional collection systems. This is where outsourced CFO services deliver immediate value.

The 10 Collection Strategies CFOs Implement

Strategy 1: Invoice the Same Day (or Next Day Maximum)

The problem: You complete work on Monday. Invoice goes out on Friday. Or the following Monday. Or whenever your bookkeeper "gets around to it." Each delay adds days to collection time.

What an outsourced CFO does: Implements same-day or next-day invoicing as a non-negotiable policy.

Here's how:

• Service delivered Monday → Invoice sent Monday (before 5 PM)
• Product shipped Tuesday → Invoice sent Tuesday
• Milestone completed Wednesday → Invoice sent Wednesday
• No batching invoices weekly
• No waiting for "perfect" timing
• Speed matters more than perfection

Your CFO sets up automation so service management software automatically triggers invoice creation on project completion, shipping systems automatically generate invoices on package pickup, and recurring subscriptions bill automatically on schedule. Team gets alerts if an invoice isn't sent within 24 hours.

Impact: Every day you delay invoicing is a day the customer doesn't receive it. If you invoice 7 days late, you get paid 7 days late. Same-day invoicing typically reduces DSO by 5-10 days immediately.

Strategy 2: Make Invoices Crystal Clear (No Confusion Allowed)

The problem: Your invoice is confusing. Missing customer PO number. Unclear description of what was delivered. No breakdown showing how the total was calculated. The customer's AP person doesn't approve it because they can't verify it matches their records.

What CFO services do: Create invoice templates that are impossible to misunderstand.

Required elements:

• Large bold invoice number at top (easy to reference)
• Customer's PO number prominently displayed (required by most corporate AP systems)
• Due date in bold ("Due February 15, 2026" not just "Net 30")
• Itemized description of what was delivered (not "Professional Services - $10,000")
• Payment terms clearly stated ("2% discount if paid by February 5, full amount due February 15")
• Multiple payment methods (ACH info, credit card link, online payment portal)
• Contact for questions (name, email, phone of person to contact about invoice)

Your CFO also implements quality control with invoice template review ensuring all required fields populate, approval processes before sending to catch errors early, and customer-specific requirements documented.

Impact: Clear invoices get approved faster. Unclear invoices get questioned, delayed, and sent back. Improving invoice clarity typically reduces DSO by 5-8 days and cuts invoice disputes by 60-70%.

Strategy 3: Automate Payment Reminders (Polite But Persistent)

The problem: You send an invoice. The customer receives it. It goes into their AP queue. Nobody follows up. Invoice sits for 45, 60, 75 days. Finally you send an awkward "just checking in on payment" email. Too late.

What an outsourced CFO does: Implements automated reminder sequences that are professional and effective.

Standard sequence:

• 7 days before due: "Friendly reminder your invoice #12345 for $10,000 is due February 15"
• Day of due date: "Just confirming you received invoice #12345 due today. Please let us know if you have any questions"
• 7 days past due: "Invoice #12345 is now 7 days past due. When can we expect payment?"
• 14 days past due: "Invoice #12345 is 14 days overdue. Please confirm the payment date"
• 30 days past due: Personal phone call (automated reminders escalate to human contact)

Your CFO sets this up in billing software like QuickBooks, FreshBooks, Chaser, or Kolleno. Reminders are sent automatically. Tracking shows who received what and when.

Important: These aren't aggressive. They're polite but consistent. Most customers appreciate reminders—they're busy too.

Impact: Automated reminders typically reduce DSO by 10-15 days. Companies implementing this see 40-50% reduction in invoices going past 30 days overdue. Customer relationships don't suffer—they improve because communication is consistent and professional.

Strategy 4: Offer Early Payment Incentives (Make It Worth Their While)

The problem: Customers have no reason to pay early. Your terms say Net 30. They pay on day 45 or 60. No penalty. No incentive to be faster.

What CFO services implement: Early payment discounts that accelerate cash while maintaining margin.

Common structures:

• 2/10 Net 30: 2% discount if paid within 10 days, full amount due in 30 days
• 1.5/7 Net 30: 1.5% discount if paid within 7 days
• Tiered discounts: 2% if paid within 5 days, 1% if paid within 15 days

Your CFO models whether this makes financial sense. On a $10,000 invoice with current 55-day DSO, offering a 2% discount ($200 cost) to get paid in 10 days means getting paid 45 days faster. The annualized return is approximately 36.5%, making it much cheaper than credit lines at 8-12% or merchant cash advances at 40%+.

Important: Your CFO calculates breakeven, makes sure the discount doesn't destroy margins, and monitors uptake rate (what percentage of customers use it).

Impact: Companies offering 2/10 Net 30 terms see 35-45% of customers taking the discount. Those invoices get paid in 8-12 days instead of 45-60 days. Overall DSO typically reduces 12-18 days. The discount costs 0.7-1.2% of revenue but releases tens of thousands in working capital.

Strategy 5: Make Paying Dead Simple (Remove All Friction)

The problem: Your invoice says "Please mail a check to..." It's 2026. Nobody wants to mail checks. It's slow. It's annoying. It delays your payment.

What outsourced CFO services implement: Multiple easy payment methods.

Payment options to offer:

• Online payment portal (customer clicks link on invoice, pays with credit card or ACH)
• ACH/wire transfer (provide bank details with clear instructions)
• Credit card (accept Visa, Mastercard, Amex despite 2.5-3% fee—worth it for faster payment)
• Auto-pay for recurring (customer authorizes automatic charge on specific date)
• Mobile payment (Venmo, Zelle for smaller amounts under $5,000)

Your CFO sets up integrations with Stripe, Square, or PayPal embedded in invoices (customer clicks, pays immediately), Bill.com or Routable for B2B ACH payments, and QuickBooks Payments or FreshBooks Payments built into invoicing. Automated reconciliation ensures payments match invoices in your system.

Impact: Companies offering online payment see 55-65% of invoices paid electronically. These payments arrive 7-12 days faster than mailed checks. DSO typically reduces 8-12 days just by making payment convenient.

Strategy 6: Call Customers at 30 Days (Not 90 Days)

The problem: Invoice hits 90 days overdue. Finally you call the customer. Awkward conversation. They say "oh, we never received that" or "there was a problem with the PO number." The issue could have been resolved 60 days ago if you'd called earlier.

What an outsourced CFO does: Implements proactive collection calls starting at 30 days, not 90 days.

Collection call schedule:

• 30 days past due: First call (friendly, information-gathering)
• 45 days past due: Second call (firmer, request specific payment date)
• 60 days past due: Escalation (CFO or controller calls, discusses putting account on hold)
• 90 days past due: Final notice before collections agency or legal action

Your CFO trains your team on effective collection calls. Start friendly: "Hi, I'm calling about invoice #12345 for $10,000 that's now 30 days overdue. Can you help me understand the delay?" Listen for issues like "We never received it" or "The PO number doesn't match." Get commitment: "When specifically can I expect payment?" Document everything and follow up.

Impact: Proactive calls at 30 days reduce invoices reaching 60+ days by 65-75%. Many "issues" are simple misunderstandings resolved in a 2-minute call. Customers also prioritize vendors who follow up consistently. DSO typically reduces 15-20 days with a disciplined collection call process.

Strategy 7: Segment Customers by Payment Behavior (Treat Differently)

The problem: You treat all customers the same. But Customer A always pays in 25 days. Customer B always takes 75 days. Why give both the same terms and treatment?

What CFO services do: Segment customers into payment tiers and adjust approach.

Customer segmentation:

Tier 1 (Fast Payers): Average 20-30 days, rarely late, strong relationship

• Terms: Net 30 or even Net 45 (they've earned trust)
• Collections: Light reminders, no aggressive follow-up needed

Tier 2 (Moderate Payers): Average 35-50 days, occasionally late

• Terms: Net 30 with early payment discount incentive
• Collections: Standard reminder sequence, call at 35 days

Tier 3 (Slow Payers): Average 60+ days, frequently late, require chasing

• Terms: Net 15 or payment upfront, 50% deposit before work starts
• Collections: Aggressive reminders starting at day 10, call at 20 days

Tier 4 (Problem Payers): Consistently 90+ days, disputes, excuses

• Terms: Payment in advance only, or refuse to work with them
• Collections: No credit extended, cash on delivery only

Your CFO tracks payment metrics including average days to payment by customer, percentage of invoices paid on time, total outstanding balance, and historical dispute rate. This data drives decisions about terms, credit limits, and whether to keep customers.

Impact: Companies segmenting customers see 20-30% improvement in overall DSO. They extend favorable terms to good payers (strengthening relationships) while tightening terms on slow payers (protecting cash). Some "problem" customers are fired—their business isn't worth the cash flow pain.

Strategy 8: Require Deposits for Large Projects (Get Paid Before You Deliver)

The problem: $200,000 project. You do all the work. Invoice at completion. The customer takes 75 days to pay. You've funded $200,000 for 75+ days before seeing a dollar.

What an outsourced CFO implements: Milestone-based billing with upfront deposits.

Standard structure:

• 25-50% deposit upon contract signing (before work starts)
• 25-30% payment at midpoint milestone
• Remaining 25-45% upon completion

Example on a $200,000 project:

• $75,000 deposit (before starting)
• $75,000 at 50% completion milestone
• $50,000 upon final delivery

Now you're never funding more than $50,000-$75,000 at a time. The customer is paying throughout the project, not 75 days after completion.

Your CFO implements this through contract templates requiring deposit language, project management software triggering milestone invoices automatically, refusing to proceed to the next phase without payment of prior milestone, and clear communication with customers upfront that deposits are standard and non-negotiable.

Impact: Milestone billing with deposits typically improves project-based DSO by 30-40 days. It also reduces write-off risk (if customer disputes final 25%, you've already collected 75%). Cash flow smooths dramatically—money comes in throughout the project instead of one lump sum 75 days after completion.

Strategy 9: Implement a Formal Credit Policy (Prevent Bad A/R Before It Starts)

The problem: You extend Net 30 terms to every customer without checking if they can actually pay. Some customers have terrible payment history with other vendors or are financially unstable. You find out only after they owe you $50,000 and won't pay.

What an outsourced CFO does: Implements a formal credit approval process that prevents bad receivables before they start.

Credit policy components:

• Credit approval before extending terms: New customers must apply for credit with references, financial statements, and trade references
• Credit limits by customer: Each customer gets assigned a maximum credit limit based on their financial strength
• Payment history review: Before increasing limits, review actual payment performance over 6-12 months
• Net 30 vs Net 15 decisions: Strong credit customers get Net 30, weaker ones get Net 15 or prepay
• New customers start prepaid: First 1-3 orders are prepaid or COD, they earn credit terms over time by proving reliability

Your CFO implements credit checks using D&B reports, business credit reports, bank references, and trade references from other vendors. They set clear credit limits (Customer A approved for $25,000 credit, Customer B only $10,000). They review quarterly and adjust based on actual payment behavior.

Important: The fastest collection is not extending credit to bad payers at all. One prevented bad debt of $50,000 pays for your CFO services for 3-4 months.

Impact: Companies with formal credit policies reduce bad debt write-offs by 40-60% and prevent chronic slow-pay customers from entering A/R in the first place. They also reduce DSO by 8-12 days by giving shorter terms or requiring prepayment from risky customers.

Strategy 10: Create a Dispute Resolution SLA (Stop the Clock)

The problem: Customer disputes an invoice. Says the pricing is wrong or services weren't delivered as agreed. The dispute sits unresolved for 45 days while you and the customer exchange emails. Meanwhile, the invoice ages to 75 days past due. You eventually resolve it but the damage to cash flow already happened.

What an outsourced CFO does: Implements a dispute management process with strict service level agreements (SLAs).

Dispute resolution system:

• Central dispute log: Every dispute tracked in one place (who, what, when, amount, reason)
• Owner assigned per dispute: Specific person owns resolution (not "everyone's problem")
• SLA for resolution: Resolve within 3-5 business days maximum (not 45 days)
• Invoice "clock stops" rule: Disputed invoices don't age during dispute resolution in DSO calculation
• Root-cause tracking: Track why disputes happen (pricing errors, PO problems, scope creep) and fix root causes

Your CFO implements a dispute escalation process. Day 1: Dispute logged, owner assigned, customer contacted for details. Day 2-3: Internal investigation, gather documentation, determine validity. Day 4-5: Resolution decision made, customer notified, invoice corrected or dispute rejected. If unresolved by day 5, escalates to CFO and customer's senior finance person for immediate resolution.

Root-cause analysis is critical. If 40% of disputes are pricing errors, fix your quoting system. If 30% are scope disagreements, improve project documentation and change order processes.

Impact: Companies that actively manage disputes with SLAs reduce unresolved invoice aging by 50%+. Average dispute resolution time drops from 30-45 days to 3-7 days. This is very CFO-authentic work that differentiates professional financial management from basic bookkeeping. It also prevents disputes from becoming relationship problems—quick resolution shows professionalism.

Why Choose NSKT Global for Collections Improvement

NSKT Global specializes in accounts receivable transformation for growing businesses. We don't just analyze—we implement and get you paid faster.

• Proven methodology: Our 90-day A/R transformation program has helped 80+ companies reduce DSO by 25-45%. Week 1-2: Immediate collections on overdue invoices. Week 3-4: System implementation. Month 2-3: Optimization and team training.
• Complete implementation: We don't hand you recommendations and leave. We set up your automation, make collection calls ourselves if needed, train your team, build dashboards, and make it happen.
• Industry expertise: We focus on professional services, agencies, SaaS companies, manufacturers, and healthcare practices. We understand industry-specific collection challenges like net 90 hospital payment terms, agency holdbacks, and SaaS failed payment recovery.
• Technology-enabled: We implement modern A/R tools including Chaser, Kolleno for automated reminders, Stripe, Bill.com, Routable for online payment, Chargebee, Recurly for subscription billing, and Jirav, Cube for real-time A/R dashboards.
• Proven results: Our clients typically see DSO reduced 15-30 days within 90 days. Working capital released worth $100,000-$800,000 depending on business size. Time spent on collections reduced 70-80%. Cash flow crises eliminated. Customer relationships improved through professional communication.
• Flexible engagement: Outsourced CFO services start at a fraction of the cost of full-time hires. Our services include A/R management, collection system implementation, team training, and ongoing monitoring. Month-to-month agreements that scale as needed.

Our CFOs implement systems ensuring payments arrive 30-40% faster. Compared to bookkeepers who produce aging reports, our CFOs use those reports to drive collection action and reduce aging.

Frequently Asked Questions

1. How quickly can a CFO improve my collections and DSO?

Immediate improvement within 2-3 weeks from collecting overdue invoices (typically $30,000-$150,000 depending on business size). Systematic DSO reduction appears by month 2 (10-15 day improvement). Sustainable 25-45% DSO reduction achieved by month 3-4 through fully implemented systems. Most companies see measurable results within 30 days.

2. Will aggressive collections damage my customer relationships?

No, if done professionally. CFO services implement polite but consistent processes. Automated reminders are helpful (customers appreciate organization). Professional calls build respect. Early payment discounts strengthen relationships. The problem is inconsistent amateur chasing. The solution is systematic professional management. Our clients report improved customer satisfaction after implementation.

3. What's a good DSO target for my industry?

Most companies should aim for DSO under 45 days. By industry: SaaS/software: 30-40 days. Professional services: 35-50 days. Manufacturing: 45-60 days. Construction: 50-70 days. Government contracting: 60-90 days (inherently slow). Healthcare: 40-60 days. Retail B2B: 30-45 days. Compare yourself to industry benchmarks. Anything 20+ days above industry average indicates collection problems worth fixing.

4. Should I offer early payment discounts or is that giving away profit?

Model it. A 2% discount costs you 2% of revenue IF all customers take it. Reality: 30-40% take it. So the real cost is 0.6-0.8% of revenue. Benefit: Get paid 40-50 days faster, releasing massive working capital. The annualized return is approximately 36.5%—cheaper than credit lines (10-12%) or emergency financing (40%+). Usually worth it.

5. What technology should I use for collections automation?

CFO services typically implement an integrated stack: Billing software (QuickBooks, FreshBooks, Xero, NetSuite). A/R automation (Chaser, Kolleno, Tesorio for reminders and tracking). Online payment (Stripe, Square, Bill.com, Routable). Subscription billing (Chargebee, Recurly for SaaS). Dashboard (Jirav, Cube for real-time visibility). Your CFO selects and implements based on your business model.

6. How do I handle customers who always pay late without losing them?

Segment them into the "slow payer" tier. Adjust terms: require deposits before work, milestone billing, or shorter payment terms (Net 15 vs Net 30). Some customers are worth keeping despite slow payment if the margin is high. Others aren't—their business costs more in cash flow pain than it's worth. Outsourced CFOs help you analyze profitability by customer including the cost of delayed payment.