Finance teams manually track overdue invoices across email and spreadsheets, missing payment deadlines, delaying cash collection, and wasting time on repetitive follow-ups. Without a structured escalation sequence, some invoices go uncollected while others receive excessive contact, damaging customer relationships.
This workflow automates accounts receivable (AR) follow-up by triggering escalating outreach sequences when invoices reach defined aging thresholds (e.g., 15, 30, 45 days past due). Each stage uses templated email or SMS, conditional logic to skip already-contacted customers, and approval gates before escalating to phone calls or legal holds. Integration with accounting software (QuickBooks, NetSuite, Xero) ensures real-time invoice status sync and payment reconciliation. The workflow reduces manual AR work, shortens Days Sales Outstanding (DSO), and creates an audit trail for collections efforts.
Trigger: Invoice reaches defined aging threshold (e.g., 15, 30, 45 days past due) OR manual trigger for urgent collections
Daily sync with accounting system (QuickBooks, NetSuite, Xero, or API) to identify invoices reaching 15, 30, 45+ days past due. Filter by customer segment (high-value, standard, at-risk) to prioritize outreach. Flag invoices already in dispute or on payment plan to skip automated chase.
Query CRM or email log to confirm no outreach sent in past 5 days. Prevent duplicate contact and reduce customer friction. Log all contact attempts in workflow record for audit trail.
Trigger friendly, templated email to primary contact: invoice details, amount due, due date, and payment link or instructions. Tone: helpful reminder, not demand. Include optional early-payment discount (e.g., 2% for payment within 5 days) if configured. Track open and click rates.
If payment not received, send second email to primary contact and optional CC to AP manager or procurement contact. Increase urgency slightly: reference prior email, note impact on account standing, offer payment plan option. Include direct phone number for questions.
Create task for collections or finance team member to call customer. Provide call script with invoice details, payment options, and dispute resolution path. Log call outcome (promised payment date, dispute reason, contact refusal) in workflow. If payment promised, set follow-up reminder.
Route invoice to finance manager or controller for decision: write-off, legal referral, or account hold. Provide summary of all prior contact attempts, customer history, and amount at risk. Manager approves next action (e.g., suspend future orders, refer to collections agency).
Monitor for payment receipt via accounting system. On payment, automatically close workflow, log payment date and method, and send thank-you email. If partial payment, adjust invoice and restart chase for remaining balance.
Weekly or monthly: compile metrics (invoices chased, recovery rate, DSO improvement, contact attempts per invoice) and send to finance leadership. Highlight high-risk accounts and collections wins.
1. **Audit current AR process**: Document existing chase sequence, contact frequency, and approval gates. Identify bottlenecks (e.g., manual email sending, missing follow-ups). 2. **Choose automation platform**: Select Zapier, Make, n8n, or native accounting tool (e.g., QuickBooks Online workflow builder). Verify API access to your accounting system. 3. **Set up accounting system integration**: Connect accounting software via API or native connector. Test daily sync of invoice aging data. 4. **Create email templates**: Draft 3–4 chase emails (15, 30, 45 days past due) with clear tone, payment link, and CTA. Include optional early-payment discount. Have finance manager review. 5. **Configure conditional logic**: Set aging thresholds (15, 30, 45, 60 days past due). Add filters: skip disputed invoices, skip customers on payment plan, skip if contacted in past 5 days. 6. **Set up approval routing**: Assign phone call task to collections team at 45 days; route manager approval at 60 days. Configure task due dates and Slack/email reminders. 7. **Integrate CRM or email log** (optional): Connect HubSpot or Salesforce to check prior contact history and log call outcomes. 8. **Test with sample invoices**: Create 5–10 test invoices at different aging stages. Run workflow end-to-end. Verify emails send, tasks create, and reconciliation works. 9. **Train finance team**: Walk through workflow, call script, task logging, and approval process. Set expectations for response time and escalation. 10. **Deploy and monitor**: Launch with live invoices. Track metrics weekly. Adjust email tone, thresholds, or approval gates based on feedback and recovery rate. Aim for 10–15% DSO improvement within 3 months.