SOP example: Chase past-due invoices
One of ten examples from our library of 150+ pre-made SOPs. Copy it, change it to how your company works, and give it an owner.
Scope
This SOP covers how Finance finds past-due client invoices and chases them until they are paid or handed to the owner. It starts when an invoice passes its due date unpaid. It ends when the invoice is paid, a payment plan is agreed, or the owner takes over. Collection rules differ by state, so check your state before any step beyond a normal reminder.
Roles
- The A/R agent: Lists past-due invoices, ranks them by how late and how large, drafts each reminder, and tracks replies and payments.
- The Cash view agent: Shows how much past-due money affects cash this week and next, so the worst gaps are chased first.
- Finance lead: Reads the list, approves the exact text of every reminder before it is sent, and decides on payment plans within the limit the delegation sets.
- Owner: Takes over the relationship on large or long-late accounts and decides on stopping work or any outside collection step.
- The SOP writer agent: Keeps this SOP current and updates it when the rules or the delegation change.
The steps
- Pull the list of unpaid invoices that are past their due date from the books.
- Rank the list by days late and amount, with the worst first. Put the source report and date on the list.
- Check each invoice for a dispute, a missing purchase order, or a payment already received but not matched.
- Fix any matching errors and pass real disputes to the Finance lead before any reminder goes out.
- Draft a reminder for each remaining invoice, with a tone that fits how late it is.
- The Finance lead reads the exact text of each reminder and approves, edits, or stops it. Nothing is sent before this approval.
- Send the approved reminders by email and record the date sent.
- Check for payment or a reply after the set wait time. If there is none, draft a firmer follow-up and return to the approval step.
- Send accounts that stay unpaid after the final reminder to the owner with the invoice history. The owner decides on a call, a pause in work, or any outside step, after checking your state.
- Mark each invoice paid, planned, or handed over, and update the cash view.
KPIs
- Days sales outstanding: Measure the average days from invoice date to payment, from the books, each month. Target: set per business.
- Past-due balance: Total unpaid amount past its due date, grouped by days late, taken from the A/R report each week. Target: set per business.
- Time to first reminder: Measure the days between an invoice going past due and the first approved reminder being sent. Target: set per business.
- Reminder approval time: Measure the time from draft to approval by the Finance lead, using the log. Target: set per business.
The AI-first version
- The A/R agent pulls past-due invoices every day, ranks them, and matches new payments to invoices (machine)
- The A/R agent checks each invoice for disputes or missing details and flags the unclear ones (machine)
- The Finance lead reviews the flagged invoices and decides how to handle each dispute (judgment)
- The A/R agent drafts a reminder for each clear invoice, with a tone based on how late it is (assisted)
- The Finance lead approves the exact text of each reminder before it is sent. Anything that leaves the company waits for this approval (judgment)
- The A/R agent sends the approved reminders and logs them (machine)
- The client pays, replies, or asks for more time (external)
- The A/R agent records payments and replies and drafts the next follow-up when the wait time ends. The follow-up goes back for approval (assisted)
- The Finance lead decides on payment plans within the delegated limit. Anything above the limit goes to the owner (judgment)
- The Cash view agent updates cash this week and next with what was collected and what is still late (machine)
How to use this SOP
Run it for a month as written, then fix what didn't match reality. In the AI-first version, machine steps go to an agent, assisted steps are drafted by an agent and checked by a person, and judgment steps stay with a person.