How this usually works
A good accounts receivable process starts with a light review: your invoice volume, current AR balance and ageing, software setup, payment methods and where the bottlenecks live. From there, the work typically rolls out in three layers.
1) Immediate triage — Clear the noise first. Fix invoice templates, taxes (GST), contact data, due dates and reference fields (POs, job numbers). Send priority reminders, issue month‑end statements and log disputes properly so nothing is missed.
2) Process design — Build a repeatable AR rhythm. That includes credit terms and onboarding, eInvoicing enablement (Peppol), automated reminder cadences, phone follow‑up rules, statement timing, payment options (Stripe, Square, PayPal, BPAY) and clean reconciliation workflows across bank feeds.
3) Ongoing review — Track KPIs and keep the ledger clean. Review aged receivables, DSO trends, unapplied credits, unallocated receipts and expected cash collections. Agree on escalation paths for older debts and align reporting with your bookkeeping, BAS and tax timelines.
Australian context to keep in view
- Invoices must show correct GST treatment, ABN, and clear payment terms; statements help customers reconcile monthly.
- Many industries now support eInvoicing via the Peppol network, which reduces errors and speeds approval in B2B flows.
- Payment links inside invoices shorten DSO. Card surcharges and late fees should be applied in line with Australian consumer and fair trading rules.
- For bigger exposures, consider credit checks and PPSR registrations to reduce risk on large B2B accounts.
- Well‑run AR reduces end‑of‑month cleanup, supports accurate BAS, and makes management reporting more reliable.
Need the broader workflow as well? See the Bookkeeping Services hub or the Accounting services hub.
What to compare before you commit
Scope
Clarify exactly who sends invoices, runs reminders, makes phone calls, issues statements, allocates receipts and manages disputes. Confirm reporting (aged receivables, DSO, cash forecast) and any cleanup or catch‑up work needed.
Software fit
Make sure the provider is strong in your stack (Xero, MYOB, QuickBooks Online) and can set up online payments, eInvoicing and custom reminders. Ask for examples of reconciliations and reporting dashboards they maintain.
Turnaround and communication
Agree on SLAs for invoice issuance, reminder cadences, dispute handling and month‑end close. Check who calls customers, when, and how issues are escalated during peak periods.
Commercial fit
Compare fixed vs time‑based pricing, meeting rhythm, and KPI targets (e.g., DSO reduction). Decide whether you need AR only, or a broader end‑of‑month bookkeeping cadence tied to BAS and payroll.
Best next steps
Write down the outcome you want: faster cash collection, fewer disputes, cleaner debtor data for BAS, or a full bookkeeping cleanup. Then shortlist providers against that outcome, not just the job title.
Come prepared with a few basics: monthly invoice count, average debtor days, current AR balance and % overdue beyond 30 days, your software, industries served, and any common dispute reasons. This helps set realistic KPIs and a clean onboarding plan.
If your records also need attention, see Bookkeeping Clean Up and Catch Up Bookkeeping. For broader decision making, use the comparison pages or jump to the Help Centre.
Frequently asked questions
What does accounts receivable usually involve?
Core tasks include invoice setup and issuance, credit terms and onboarding, automated reminders and phone follow‑ups, monthly statements, allocating receipts, reconciling bank feeds and reporting on aged receivables and DSO. In Australia, that also means correct GST on invoices, support for eInvoicing where relevant, and clean data for BAS and tax.
How do I know if this service suits my business?
It’s a fit if cash is slow, overdue balances are growing, reconciliations are behind, or staff are stretched across sales and admin. It also helps when you’re implementing new software (Xero, MYOB, QBO), need reliable month‑end reporting, or want to formalise reminders and phone follow‑ups.
What should I compare before choosing a provider?
Compare scope and cadence, software capability, turnaround SLAs, and communication style. Ask for KPI targets like DSO reduction and collection rate improvement. Clarify whether they manage phone calls, eInvoicing, payment gateways, disputes and escalation to collections if necessary.
What should I read next?
Go broader with Bookkeeping Services or adjacent with Accounts Payable and Bank Reconciliation. If you have backlog, see Bookkeeping Clean Up and Catch Up Bookkeeping. For compliance pathfinding, visit BAS and Tax.