Accounts receivable is one of the most common sources of cash flow pressure in growth-stage companies.

Revenue can look strong on paper, but when collections don’t keep up, cash becomes constrained.

In this video, I break down how AR and collections actually work, where they start to break down, and how to fix them. I also cover how to think about bad debt strategically and what it means for your financials.

(00:00) Introduction
(00:54) The real problem behind cash flow issues
(01:46) Early warning signs of AR problems
(03:44) Collections escalation and use of agencies
(04:51) Systems between sales, billing, and accounting
(06:02) Core metrics that matter (DSO, aging, AR vs revenue)
(08:14) Thinking about bad debt strategically
(10:36) How to improve your collections process