Finance AI Skill

Collections Management

Prioritize and automate accounts receivable collections activities to maximize cash recovery while preserving customer relationships. Use when managing overdue invoices, setting up automated collection workflows, negotiating payment plans, handling disputed...

Collections Management

Systematically collect overdue receivables through automated reminders, smart prioritization, and relationship-preserving escalation strategies.

Workflow

Collections Process Pipeline

Trigger: Daily AR aging review with automated collection activities:

  1. AR aging analysis:
  1. Customer risk scoring:
  1. Collections prioritization:
  1. Automated dunning workflow:
  1. Personal collection outreach:
  1. Dispute resolution:
  1. Payment plan management:
  1. Write-off and bad debt management:

AR Aging Summary

AR AGING REPORT — January 15, 2025
════════════════════════════════════

TOTAL GROSS RECEIVABLES: $12.4M

AGING BUCKET              AMOUNT     % OF TOTAL   TREND
────────────────────────────────────────────────────────
Current (0-30 days)       $8,920,000    71.9%      ↑
1-30 days past due        $1,850,000    14.9%      →
31-60 days past due        $980,000     7.9%       ↑  ⚠
61-90 days past due        $420,000     3.4%       ↑  ⚠
91-120 days past due       $150,000     1.2%       ↓
120+ days past due          $80,000     0.6%       →

KEY METRICS:
  DSO (Days Sales Outstanding): 38 days  ⚠ Target: 30 days
  Collection Effectiveness Index: 87.2%   ⚠ Target: 92%
  % Gross AR > 60 days:          5.2%    ⚠ Target: <4%

TOP 10 OVERDUE ACCOUNTS:
  1. TechCorp Inc.      $245,000  | 67 days | Risk: Orange
  2. Global Retail Co.  $198,500  | 45 days | Risk: Yellow
  3. StartupXYZ LLC     $156,200  | 89 days | Risk: Red
  4. Enterprise Solutions $134,800 | 38 days | Risk: Yellow
  5. MediaGroup Corp.    $98,400  | 52 days | Risk: Orange

Templates

Automated Dunning Email Templates

REMINDER 1 — 3 Days Before Due Date
═════════════════════════════════════
Subject: Upcoming Invoice Due: #[InvoiceNumber]

Hi [Customer Name],

This is a friendly reminder that invoice #[InvoiceNumber] for $[Amount] will be due on [Due Date].

You can view and pay your invoice here: [Payment Link]

If you have any questions about this invoice, please don't hesitate to reach out.

Best regards,
[Company] Accounts Receivable Team

---

REMINDER 3 — 7 Days Past Due
══════════════════════════════
Subject: Past Due Invoice: #[InvoiceNumber] — $[Amount]

Hi [Customer Name],

Our records show that invoice #[InvoiceNumber] for $[Amount] was due on [Due Date] and is now 7 days past due.

Invoice Details:
  Invoice #: [Number]
  Amount: $[Amount]
  Due Date: [Date]
  Days Overdue: 7

Please remit payment at your earliest convenience:
[Payment Link]

If payment has already been sent, please disregard this notice.
If you have questions or need to discuss payment arrangements, contact us at [email/phone].

Best regards,
[Company] Accounts Receivable Team

---

REMINDER 5 — 30 Days Past Due (Final Notice)
════════════════════════════════════════════
Subject: FINAL NOTICE — Overdue Invoice #[InvoiceNumber]

Hi [Customer Name],

Your account has an outstanding balance of $[Amount] that is now 30 days past due.

Outstanding Invoices:
  #[InvoiceNumber]  $[Amount]  [Days] overdue
  #[InvoiceNumber]  $[Amount]  [Days] overdue
  TOTAL:           $[Total]

Please note that failure to resolve this balance within 10 business days may result in:
  - Suspension of service/shipments
  - Account placement with a collection agency
  - Impact on your credit terms

We value your business and prefer to resolve this amicably.
Please contact our collections team immediately at [phone].

Regards,
[Company] Finance Department

Payment Plan Agreement Template

PAYMENT PLAN AGREEMENT
══════════════════════

Customer: [Name]
Account #: [Number]
Total Balance: $[Amount]
Agreement Date: [Date]

PAYMENT SCHEDULE:
  Installment 1: $[Amount] — Due [Date]
  Installment 2: $[Amount] — Due [Date]
  Installment 3: $[Amount] — Due [Date]

TERMS:
  - Payments must be received by the due date
  - Any missed payment voids this agreement
  - Future invoices remain due per standard terms
  - Service status: □ Active □ Suspended until balance cleared

APPROVAL:
  Customer authorized by: [Name/Title]
  Finance approved by: [Name/Title]

Edge Cases

Integration Points

Output

Collections Performance Dashboard

COLLECTIONS PERFORMANCE — January 2025
══════════════════════════════════════

RESULTS:
  Total collected this month:    $4.2M
  Target collection:            $4.5M
  Collection rate:              93.3%  ✓ Above target (90%)
  Cash applied:                $4.0M
  Unapplied cash:              $0.2M

DSO TREND:
  Current month:   38 days  ⚠
  Prior month:     36 days
  3-month avg:     37 days
  Target:          30 days

AGREEMENT SUCCESS:
  Payment plans active:     12
  Payment plans compliant:  10 (83%)
  Payment plans defaulted:   2

WRITE-OFF ACTIVITY:
  Write-offs this month:   $18,500
  Write-off rate:          0.15%  ✓ Below threshold (0.5%)
  Recovered write-offs:    $8,200

NEXT MONTH FOCUS:
  - 3 accounts approaching 90-day threshold
  - TechCorp payment plan renewal due
  - Seasonal adjustment expected for retail segment