Days from delivery to invoice
Billing lag is often bigger than collection lag.
Accounting and CPA firms · Invoicing and collections follow-up
Stop finishing the return and then waiting 60 days to get paid
Accounting firms often do excellent work and then bill for it slowly. Invoices go out when someone has time after the return is filed, monthly CAS clients are billed by hand, and nobody likes chasing a long-standing client for an overdue balance. By August, receivables from tax season are still open while the firm is paying payroll for extension season.
How it often works today
- Individual returns are invoiced after delivery in batches, sometimes weeks later, and many clients pay by mailed check.
- Monthly bookkeeping and CAS invoices are created manually each month, and clients with scope changes are not rebilled.
- Overdue invoices get a reminder only when the office manager has time, and partners are reluctant to call long-standing clients about money.
- Nobody compares fixed fees to actual time by client, so chronically underpriced engagements renew unchanged every year.
A better billing workflow bills at clear trigger points, such as engagement signing, return delivery or the first of the month, uses stored card or ACH authorization where the client agreed, and follows up on overdue balances on a fixed schedule. Partners decide on exceptions, payment plans and whether to hold e-filing until payment, according to firm policy.
The improved workflow
Set billing triggers by service
Tax work is billed at delivery or with a deposit at signing; monthly services bill automatically on the first. The firm agrees the triggers once rather than deciding job by job.
Collect payment authorization at signing
Engagement letters sent through Ignition, Karbon, Canopy or TaxDome include card or ACH authorization, so recurring fees are collected without a new invoice each month.
Follow up on a fixed schedule
Polite reminders go out at set intervals. After a defined point, the engagement partner gets a task to call or decide on next steps.
Compare fees to time
A monthly report shows fixed-fee clients whose actual hours exceed the fee by a set margin, so partners can reprice or rescope at renewal.
How we deliver this: AI automation for small business or fractional CTO leadership, scoped in writing and run over 90 days. See pricing or the sample scope.
What we would measure
Days sales outstanding
The overall speed of turning finished work into cash.
Share of recurring fees on stored payment
Each client moved to automatic payment removes a monthly collection task.
Engagements running over fee
Identifies where pricing, not collections, is the margin problem.
Where people stay in control
- Partners approve the firm's billing triggers, reminder wording and any decision to hold returns or work for non-payment.
- Payment card and bank details are handled only by PCI-compliant payment processors and never stored in spreadsheets or email.
- Fee changes and repricing decisions are made by the engagement partner and communicated personally to the client, not by automated message.
Example
Illustrative: a firm with 80 monthly CAS clients
For example, a firm with 80 monthly bookkeeping clients has been creating invoices manually on the fifth of each month. After moving to signed proposals with ACH authorization, most fees are collected automatically on the first. A monthly report shows twelve clients whose hours run well over their fee, and the partners reprice six at renewal. This example is illustrative, not a measured outcome.
Tools typically involved
What the first 30 days look like
The first 30 days would pull a year of invoice and payment data, measure billing lag and DSO by service line, and compare fixed fees to logged time for your largest recurring clients. We would then agree billing triggers and reminder policy with the partners.
Common questions
Will clients accept automatic payment?
Many do, particularly for monthly services, when it is presented clearly at signing with a choice of card or ACH. Some clients will always prefer to pay by check, and the workflow should allow for that. New clients are usually easier to start on automatic payment than existing ones.
Should we hold returns until clients pay?
Some firms require payment before e-filing or delivery, others do not. It is a policy decision for your partners, and it should be stated in the engagement letter so clients know in advance. The automation simply applies whatever rule you choose consistently.
Do we need Ignition if we have Karbon or TaxDome?
Not necessarily. TaxDome and Canopy include proposals and payments; Karbon has billing features too. Ignition is strong for proposals and recurring billing, and some firms pair it with Karbon. We would compare against what you already pay for first.
The business case
Does it pay for itself?
Illustrative defaults for an accounting firm. Replace them with your numbers.
What this workflow costs today
a month in staff time, before any lost sales
Monthly fee + assumed tools +
Break-even: new clients a month (at first-year value)
Or: staff hours recovered and redeployed
Break-even additional revenue
Value of +1 point of win rate
First 90 days, service fee
Worth a closer lookTest the assumptions
Illustration only, not a forecast or guarantee. Recovered staff time becomes a cash saving only if spending actually declines or the time goes into paid work. Tool costs are an assumption; we replace every number here with yours before recommending a scope.
Invoicing and collections follow-up in other industries
Architecture firmsAuto repair shopsCommercial cleaning companiesConsulting and professional services firmsDental practicesElectrical contractorsEvent and catering companiesHome remodeling companies
Invoicing and collections follow-up: full guide
Related guides
How to automate invoicing in QuickBooks OnlineDocument processing automation for service businessesHow to measure the ROI of AI and automationAI automation for small business: costs, limits and what pays back
Terms used here
Next step
Bring one expensive workflow. Leave with a clear next step.
In 30 minutes we look at one recurring workflow, what it costs you today and whether there is a credible case to improve it. If there is not, we will say so.
Book a 30-minute workflow review
Not ready to talk? Take the 3-minute check
30 minutes with Phil or Martin. No technical brief, no pitch deck. Phil or Martin replies personally, usually within one business day.