What makes a collections playbook usable rather than ignored?
A collections playbook gets used when it answers who does what, on which day, with which template, inside the tools your team already lives in. A page of bulletproof steps beats a 30-page policy because reps and credit controllers only follow what they can see in their task list this morning. The secret is collapsing ambiguity: one bucketed ladder, one escalation path, one promise-to-pay log, and one definition of done.
How do clarity, short steps and embedded tools beat “policy PDFs”?
Clarity and short steps win because every action is pre-written, pre-timed and triggered by invoice due dates inside HubSpot, Pipedrive or Salesforce and mirrored in Xero reminders. A call is no longer “chase overdue” but “call invoice 10423, verify receipt, secure date, capture promise-to-pay amount and send link.” When staff never leave their normal system to “remember the policy,” consistency and cash both rise.
Where does aged debt really sit today and how do you see it at a glance?
Aged debt sits in a combined view: Xero’s aged receivables report for the ledger truth plus a CRM pipeline view grouped by days past due for action truth. A single dashboard shows totals, largest 10 accounts by value, right-party contact rate this week, and broken promises that need escalation, so leaders can point at the one thing that moves cash today.
How do you build an aged debt ladder that guides action instead of blame?
An aged debt ladder guides action when each bucket names the objective, the owner, the cadence and the escalation, so nobody debates the next move. A Cardiff agency, for instance, will see a customer at 31–45 days move from friendly email to firm reminder with statement attached and an offer of direct debit, while a Bristol wholesaler might add a manager call at 46–60 days to set a written schedule for part-pay.
Request a 30-min collections playbook review with a VFD at Total Books Accountants (Cardiff • Newport • Bristol; UK-wide via virtual delivery) and leave with your first live cadence, owner assignments, and a one-page dashboard.
Aged debt ladder (example structure)
|
Bucket (days past due) |
Primary goal |
Owner |
Contact method |
Cadence |
Script prompt |
Escalation |
Notes |
|
Current (not due) |
Confirm invoice accuracy |
Account manager |
Email + invoice link |
Once 3 days pre-due |
“All good to pay on the due date?” |
None |
Preventative check |
|
1–15 |
Nudge and link to pay |
Account manager |
Email/SMS with pay link |
Day 3 and Day 10 |
“Here’s the link if it helps” |
None |
Keep tone friendly |
|
16–30 |
Verify and secure date |
Account manager |
Phone call then email |
Two touches in week |
“Can we lock Thursday?” |
Escalate if no date |
Capture promise-to-pay |
|
31–45 |
Firm reminder + statement |
Credit controller |
Email + statement PDF |
Weekly |
“Statement attached; DD option here” |
CC manager |
Offer direct debit |
|
46–60 |
Negotiate plan |
Credit controller |
Phone + written schedule |
One call + one email |
“Two instalments: £X on Thu, £Y on 28th” |
Manager approval for plan |
Add to tracker |
|
61–90 |
Pre-hold notice |
Credit controller |
Formal notice |
One notice + call |
“Hold from [date] unless plan agreed” |
VFD review |
Tighten credit |
|
90+ |
Formal escalation |
VFD |
Final demand/third-party referral |
One notice |
“Final demand by [date]” |
Director sign-off |
Educational only; take advice |
Which roles own which actions so nothing falls between sales and finance?
Roles stop drift when the account manager owns first-touch and relationship context, the credit controller owns cadence compliance and documentation, the Virtual Finance Director owns governance and edge cases, and the director signs off concessions beyond thresholds. Sales hears the customer’s blockers; finance tracks the promise; the VFD keeps the machine honest.
Who does first-touch, who escalates, and who approves concessions?
First-touch sits with the account manager for 0–30 days because they have rapport; escalation sits with the credit controller for 31–90 days because they own scripts, evidence and holds; concessions above a set amount or beyond a set delay need director approval with VFD input so you do not accidentally train customers to pay late.
How do you design a dunning sequence your customers will respond to?
A responsive dunning sequence mixes friendly nudges with clear next steps, makes paying easy with Stripe links and GoCardless mandates, and moves to manager or VFD escalation only when promises slip. UK buyers respond to short, specific messages with one ask, not paragraphs or threats.
Dunning templates by stage (copy, personalise, send)
Email – friendly nudge (1–15 days)
Subject: quick nudge on INV-{{number}}
Hi {{name}} — hope you’re well. INV-{{number}} for £{{amount}} is due on {{date}}. You can pay here: {{payment_link}} or let me know if you need the PDF re-sent. Thanks, {{AM}}
Call – confirmation (16–30 days)
“Hi {{name}}, checking you have INV-{{number}} £{{amount}} due {{date}}. Can we lock payment for {{day/date}}? I’ll email a confirmation now with the link.” [Capture promise-to-pay date/amount in CRM.]
Email – firm reminder with statement (31–45 days)
Subject: statement attached — can we settle INV-{{number}} on {{date}}?
Hi {{name}} — attaching your statement. If it helps, here’s a direct debit link: {{gocardless_link}}. Could you confirm payment on {{date}} or propose two dates we can lock in? {{CC}}
Call – manager escalation (46–60 days)
“Hi {{name}}, let’s agree a written schedule now: £{{x}} this Thursday, £{{y}} on the 28th. I’ll send it for e-signature and we’ll lift the temporary hold.”
Notice – pre-hold (61–90 days)
Subject: account on hold from {{date}} without a plan
“Please confirm a payment plan by {{date}} or the account moves to hold. To avoid hold, reply with dates and amounts or complete this direct debit link.”
Notice – formal escalation (90+)
Subject: final demand — action by {{date}}
“This is a final demand for £{{balance}}. If unpaid by {{date}}, the account moves to formal collections. Contact us today to agree a plan.”
Note: this is educational; obtain legal advice before sending formal demands.
How do you embed collections into CRM so tasks happen on time?
Collections stick when your CRM holds a pipeline called Collections, stages align to the debt ladder, and tasks auto-create from invoice due dates. The account manager is owner for early stages, the credit controller becomes owner at 31+ days, and SLA timers highlight anything untouched by noon. HubSpot, Pipedrive and Salesforce can all do this in a morning with standard features.
CRM pipeline and fields
- Pipeline stages: Current, 1–15, 16–30, 31–45, 46–60, 61–90, 90+
- Auto-tasks: create “Call + confirm date” at Day 18; “Send statement” at Day 32; “Pre-hold notice” at Day 65
- Required fields: invoice value, days past due, risk tier, promise-to-pay date/amount, dispute reason, next action
- Views: today’s calls, broken promises, high-value 30+, disputes queue, 60+ pending hold
What pipelines, task queues and fields belong in HubSpot/Pipedrive/Salesforce?
Pipelines need the seven stages that mirror buckets, task queues need “Today’s calls,” “Broken promises,” and “Disputes,” and fields need exactly the data that drives the next move. A sales rep opening a deal sees days past due, promise date, amount, and the next script line in the description; a controller opening a queue sees which notices will fire today.
How do you make Xero do more of the heavy lifting automatically?
Xero pulls weight when reminders match buckets, statements auto-send monthly, payment links from Stripe sit on every invoice, GoCardless mandates are offered by default, and tracking categories segment customers by industry or risk so messaging and tone fit. Notes in Xero record calls; add-ons like Chaser help when volume is high and you want multi-channel sequences with analytics.
Which reminders, statements, notes and add-ons reduce manual chasing?
Reminders reduce manual chasing when they respect the ladder: soft nudge pre-due, friendly on Day 3, firmer on Day 30 with a statement, and schedule-seeking copy on Day 45. Notes reduce confusion when they state who said what, which date was promised, and which link was sent. Add-ons reduce admin when they log opens, clicks and send failures so you can change channel fast.
How do you set credit limits, deposits and payment methods to prevent debt?
Preventative controls work when credit limits are risk-based, deposits or upfront part-payments are standard for new or higher-risk accounts, and direct debit is built into onboarding. A Newport distributor might ask for 30 percent upfront on first orders; a Bristol services firm might require a mandate before the first project milestone.
When do you require direct debit or upfront part-payment?
Direct debit is required when order value or risk tier crosses a threshold, when two promises have been missed, or when an industry segment historically pays late. Upfront part-payment is required on bespoke or inventory-heavy work where your cost sits ahead of revenue, and the CRM flags the rule at quote stage so sales is not surprised later.
How do you handle disputes without derailing cash and customer relationships?
Disputes stay fast when you use a one-page form that captures what, why, evidence, and desired outcome, and you time-box each step: acknowledgement same day, investigation two days, resolution or credit decision inside five. The account manager collects facts, the credit controller logs the dispute and pauses the cadence appropriately, the VFD signs off material credits so you do not train bad behaviour.
Dispute form essentials
- Fields: invoice number, amount, issue type, description, supporting evidence, customer contact, desired outcome, internal owner
- SLA: acknowledge today; initial finding in 48 hours; resolution in five business days unless documented extension
What is the fast path for resolution, credits and sign-off?
The fast path is a standard price/quantity/PO-match check in Xero, a call with the buyer named on the PO, and a pre-approved credit band the controller can issue without waiting on a monthly meeting. Anything above that band lands with the VFD for a same-day decision so the account does not age into the next bucket while you deliberate.
What metrics prove your playbook is working and when do you tighten it?
Metrics prove success when they show cash conversion improving and effort landing on the right accounts: DSO trending down, Collection Effectiveness Index above 90 percent, touch compliance above 95 percent, promise-to-pay kept rate above 85 percent, right-party contact rate above 70 percent, dispute cycle time under five business days. Tighten scripts, cadences or limits when any metric falls for two straight weeks.
Collections dashboard spec
|
KPI |
Definition |
Target |
Current |
Trend |
Action owner |
|
DSO |
Days sales outstanding |
↓ each month |
VFD |
||
|
CEI |
Collection effectiveness index |
≥ 90% |
Credit controller |
||
|
Touch compliance |
Tasks done on time |
≥ 95% |
AM/CC |
||
|
PTP kept rate |
Kept / promised |
≥ 85% |
AM |
||
|
Right-party contact |
Calls reaching payer |
≥ 70% |
AM |
||
|
Dispute cycle time |
Open → close (days) |
≤ 5 |
CC |
How does a Virtual Finance Director lock this discipline in every week?
A VFD locks discipline with a weekly stand-up, a live ladder review, and a one-page board pack each month. The stand-up lasts fifteen minutes: top 10 accounts, broken promises, disputes, holds. The review checks cadence compliance and scripts, tunes thresholds for holds, and confirms GoCardless and Stripe adoption are rising. The board pack shows DSO, CEI and cash conversion with recommendations that sales and finance can implement immediately.
What governance rhythms, reviews and coaching keep collections on track?
Governance rhythms work when they are light and relentless: Monday targets, Thursday reality check, Friday tidy-up. Reviews work when they rotate two scripts for A/B testing, run a ten-minute coaching slot with real calls, and share one win and one learning. Coaching sticks when the VFD plays back anonymised call snippets and the team agrees a single change for next week.
What should your first four weeks look like if debt is already high?
The first four weeks look like triage and build in parallel: Week one is data clean in Xero, CRM fields live, and cadence launched for 1–30 days. Week two rolls the ladder to 31–60 days, switches on monthly statements, and onboards direct debit for the top ten debtors. Week three adds a dispute fast-track, introduces written payment plans, and starts the hold policy at 61+ days. Week four puts the dashboard live, retros the scripts with results, and resets credit limits for high-risk segments.
What templates should your team use at each stage?
Templates should be copy-paste simple, channel-specific, and preloaded with payment links so the only edit is the date. The examples earlier are ready to drop into your CRM snippets and Xero reminder bodies; add GoCardless links to the 31–45 day emails and your Stripe checkout link to every invoice and reminder so people can pay in one tap.
How do you configure Xero for fewer manual chases?
Configuration is a 45-minute task: enable three reminder tiers matched to the ladder, add payment services (Stripe) and GoCardless mandates, set monthly statements to auto-send to any account with a balance above zero, create tracking categories for risk tiers, and connect a specialist tool like Chaser if volume is high. Notes record call outcomes; files store payment plans; contacts show who actually pays, not just who buys.
How do roles and responsibilities prevent the “everyone and no one” problem?
Responsibilities prevent drift when they are written into the task owner field and enforced by SLA timers. The account manager owns early friendly touches and verification; the credit controller owns plans, statements, documentation and holds; the VFD owns escalations, policy updates, and reporting; the director owns concessions past limits and backs the escalation stance with a single voice.
How do you set preventative controls without harming sales?
Preventative controls avoid harm when they are risk-based and explained at onboarding: credit limits tied to credit checks, deposits up front for new or higher-risk customers, direct debit as the standard payment method, and clear contract language for late fees and service holds. Sales still sells; finance simply reduces the chance of a painful chase later.
What KPIs and guardrails prove collection discipline?
Guardrails clarify when to act, not when to argue: two missed promises trigger manager escalation, 60+ days triggers hold unless the VFD overrides, and any dispute untouched for 48 hours triggers a team alert. KPIs then prove the system is working, and if they slip, you adjust credit limits, scripts or cadence without waiting a quarter.
How does a VFD keep the machine running?
A Virtual Finance Director (VFD) keeps cash collection running by auditing the cash ladder every Friday, coaching the two riskiest accounts on Monday, and reporting the three most useful numbers to the director mid-month. The outcome is predictable cash, calmer Thursdays, and fewer write-offs. The method is boring by design: the same ten checks, the same five scripts, the same dashboard, improved one inch every week.
Our virtual finance directors can help with:
- CRM: create Collections pipeline with seven stages; add fields (value, days past due, risk tier, PTP date/amount, dispute reason, next action); build views for today’s calls, broken promises, high-value 30+, disputes
- CRM automations: due-date-based task creation; SLA timers; owner shift from AM to CC at 31+ days; email/SMS templates as snippets
- Xero: enable tiered reminders; add Stripe and GoCardless; schedule monthly statements; standardise PO/reference fields; add tracking categories; connect Chaser if needed
- Governance: weekly stand-up; Friday variance review; monthly policy tune; quarterly board pack
Speak with Buhir Rafiq MAAT at Total Books Accountantsabout embedding CRM + Xero collections discipline so aged debt funds your runway, not your stress levels.
