Run: Accounts Receivable Collections SOP

The Accounts Receivable Specialist reviews the current aging report and confirms all open balances are grouped by current, 1-30, 31-60, 61-90, and 90+ days past due. The specialist verifies that the report date, customer names, invoice numbers, and outstanding amounts are accurate before starting collections activity.

The Collections Specialist ranks accounts by days past due, balance amount, dispute status, and customer payment history. The specialist flags any account over the internal escalation threshold, any account with repeated broken promises to pay, and any account with a known dispute that may delay payment.

The Collections Specialist contacts each prioritized customer using the approved cadence for the invoice age and customer segment. The specialist sends a courteous reminder by email, follows up by phone when required, and records the date, time, contact method, person reached, and summary of the conversation in the contact log. The specialist requests a payment date or dispute details and confirms the next follow-up date.

The Finance Manager verifies whether each overdue account is unpaid due to a valid dispute, missing documentation, or non-response. The manager confirms that any promised payment date is recorded, that supporting evidence is attached where applicable, and that unresolved disputes are routed to the appropriate internal owner for resolution.

The Accounts Receivable Specialist escalates any account that meets the escalation criteria, including balances beyond the defined days past due limit, repeated missed commitments, or unresolved disputes with no customer response. The specialist notifies the Finance Manager, sales owner, or account owner according to the escalation matrix and documents the escalation date, reason, and assigned owner.

The Collections Specialist sends a final notice for accounts that remain unpaid after prior reminders and escalation attempts. The notice states the outstanding amount, the deadline for payment, and the next action if payment is not received, such as suspension of service, referral to a collection agency, or write-off review, according to company policy.

The Accounts Receivable Specialist prepares a write-off package for accounts that meet the company write-off criteria. The specialist includes the invoice details, aging history, collection attempts, dispute notes, customer response history, and the reason the balance is considered uncollectible.

The Finance Manager or other authorized approver reviews the write-off package and confirms that collection efforts were completed, the amount is within approval limits, and the documentation supports the request. The approver signs or electronically approves the write-off before the accounting entry is posted.

The Accounts Receivable Specialist updates the account status in the accounting system, records whether the balance was collected, escalated, disputed, or written off, and archives the supporting documentation in the approved repository. The specialist confirms the record retention period is followed and that the final disposition is visible in the collections tracker.