Close the AR Gap: Collections Cadences That Reduce DSO Before December 31

Q4 isn’t just a time to close the books—it’s the last real chance to get your cash flowing and finish the year strong. Businesses that wait until December to chase overdue invoices often face frustrated clients, delayed budgets, and extended DSO. Meanwhile, companies that adopt smart collections cadences now? They’re accelerating payments, improving cash flow, and setting the stage for a smoother start to the new year.

Straight Talk CPAs works with business owners to turn accounts receivable from a reactive headache into a predictable, cash-generating system. By implementing structured collections cadences, businesses reduce DSO, free up working capital, and maintain strong client relationships—all before December 31.



In this guide, we’ll break down how to design and execute AR collection strategies that actually work, and why acting early this quarter can save your business time, stress, and money.

Why Year-End Collections Matter

Think of your AR process like the engine of your business. When it runs smoothly, cash moves predictably, decisions are easier, and growth feels manageable. But when DSO creeps up, even profitable businesses can feel cash strapped.

Q4 is your last chance to:

• Accelerate cash inflows before year-end reporting
  
• Identify overdue accounts and reduce write-offs
  
• Build repeatable routines that keep collections consistent
  
• Strengthen client communication without straining relationships
  
  

Ask yourself: which overdue invoices are quietly holding your cash hostage? Waiting until January? That ship has already sailed. A planned cadence ensures your team knows exactly when and how to follow up, keeping receivables moving efficiently.

Start with the Right Assessment

Before creating a collection cadence, it’s critical to understand where you stand:

• Invoice Aging: Which clients are consistently late, and why?
  
• Payment Terms Compliance: Are your current terms realistic or too lenient?
  
• High-Value Accounts: Which overdue accounts could have the biggest impact on cash flow?
  
• Internal Resources: Who on your team is responsible for follow-ups, and how often?
  
  

Even just thinking through these questions can reveal surprising gaps. Straight Talk CPAs helps turn your answers into an actionable plan that prioritizes efficiency without sacrificing relationships.

Build a Structured Collections Cadence

A cadence is a repeatable schedule of outreach that keeps invoices moving while respecting client relationships. Here’s how to make it work:

1. Early Reminders
Friendly nudges within the first few days past due can prevent small delays from snowballing. A quick email or phone call goes a long way.

2. Mid-Term Follow-Ups
15–30 days overdue? Personalize your approach. Sometimes a short call or flexible payment arrangement is all it takes to get things back on track.

3. Late-Stage Engagement
Accounts 60+ days overdue require clear communication. This is where expectations and consequences matter. Be firm—but professional.

4. Track Everything
Document every touchpoint. Internal tracking ensures no account slips through the cracks and helps adjust cadences for the future.



5. Keep it Client-Friendly
Collections don’t have to feel aggressive. Approach it as a partnership: clarify expectations, offer solutions, and reinforce trust.

Leverage Data for Smart Decisions

A strong year-end AR strategy isn’t guesswork. Track metrics like DSO trends, aging buckets, and client response times. This helps you:

• Adjust cadences for specific clients
  
• Identify recurring bottlenecks
  
• Predict cash flow more accurately



Straight Talk CPAs provides dashboards, reporting, and insights so your team can act where it matters most.

Final Thoughts

Closing the AR gap before year-end isn’t just about chasing overdue invoices. It’s about building predictable systems that support your business’s financial health. With a clear collections cadence, you reduce DSO, improve cash flow, and finish the year strong.

Think about your top 3 overdue accounts today. Are they moving? If not, a structured plan can change that—and fast.

Straight Talk CPAs is ready to help design, implement, and monitor a collections cadence that keeps your accounts receivable flowing smoothly—and your business growing—through December 31 and beyond.