#03 - What Good Accounts Receivable Actually Looks Like

Episode 3 – What Good Accounts Receivable Actually Looks Like Less chasing. More cash in the bank. Episode Summary Chasing unpaid invoices is exhausting. If you’re checking your bank account every morning, wondering when that invoice will land — or having awkward “just following up…” conversations with clients — this episode is for you. In this one, Amanda breaks down what good accounts receivable actually looks like in a trade business. No theory. No finance jargon. Just practical systems that reduce stress and improve cash flow. Because late payments aren’t just annoying — they hurt your momentum, your growth, and your sleep. In This Episode, We Cover: ✔ Why most tradies don’t have a proper accounts receivable system ✔ How poor receivables management damages cash flow ✔ Why sending an invoice isn’t the same as getting paid ✔ What a healthy accounts receivable system looks like ✔ The importance of reviewing your aged receivables weekly ✔ What “average debtor days” means (and why under 14 days is the goal) ✔ A simple step you can take this week to clean things up What Good Accounts Receivable Looks Like A strong system includes: Invoices sent immediately (not “when I get time”)Clear payment terms and due datesClients set up with expectations from day oneAutomatic reminders before and after the due dateWeekly follow-ups on overdue accountsReviewing your aged receivables report weeklyTracking your average debtor days (aim for under 14) No chasing chaos. Just consistent systems. This Week’s Action Step Log into Xero. Pull up your Aged Receivables Report. Highlight every client over 14 days. That’s your follow-up list this week. Then: Set up automatic reminders (if you haven’t already)Spend 20 minutes following up — phone or email Not to nag. Just to move the money. The Bottom Line Cash flow drives everything. If your accounts receivable system is weak, the rest of the business feels harder than it needs to. And if you’re flat out and never get around to this stuff — this is exactly what we help tradies with at Virtual Coastie. You can absolutely do it yourself. Or you can get help and free up your headspace. Totally up to you. 🔧 Learn more at: www.virtualcoastie.co.nz 🎧 Follow Hey Tradies! so you don’t miss the next episode. Catch you next time.