What happens at this stage

The cash stage is everything between an invoice being sent and the money arriving: reminders, dunning cadences, collection calls, late fees, and the accounts receivable ledger that tracks it all.

Collections is where the cost of every earlier mistake shows up. A clean quote, contract, and invoice make collection a series of polite reminders; a messy one turns it into weeks of back and forth.

Where it usually breaks

  • Reminders are sent inconsistently, or only once an invoice is badly overdue.
  • Nobody owns follow-up, so large invoices age while small ones get chased.
  • Late payment terms exist on paper but are never applied.

Metrics to watch

  • Days sales outstanding (DSO)
  • Share of receivables over 60 days
  • Collection effectiveness index

Guides for this stage