Days sales outstanding on account customers
The main measure of how quickly the shop gets paid on terms.
Auto repair shops · Invoicing and collections follow-up
Get paid on fleet accounts and warranty claims without chasing by hand
Retail customers pay at pickup. The money that drifts is everywhere else: fleet accounts on net 30, extended warranty claims waiting on an adjuster, dealer sublet work and a few long-time customers on charge accounts. Those invoices often sit until the owner or bookkeeper notices, and by then some are 60 or 90 days old.
How it often works today
- Fleet invoices are emailed from the shop system but nobody checks whether they matched the customer's purchase order or approval requirements.
- Extended warranty claims are filed by phone, and paperwork for the adjuster sits in the advisor's email while the shop carries the cost.
- Statements go out monthly if the bookkeeper has time, and reminder calls happen only when cash gets tight.
- The shop keeps repairing vehicles for accounts that are already past due because the advisor cannot see the balance at check-in.
We would map who you bill on terms, how invoices move from the shop system into QuickBooks Online and what happens when they are not paid. Then we would put a consistent follow-up schedule in place, with statements and reminders going out on time and the owner deciding anything involving credit holds or write-offs.
The improved workflow
List every account on terms
Identify fleet, charge and warranty accounts, their payment terms, PO requirements and billing contacts, and confirm the shop system and QuickBooks Online agree.
Send complete invoices first time
Attach the PO number, unit number, mileage, approval and inspection photos so fleet managers and warranty adjusters have nothing to send back.
Run a reminder schedule
Send polite reminders before and after the due date, followed by a statement and a call task for the owner or bookkeeper at an agreed age.
Show balances at check-in
Flag past-due accounts in the shop system so the advisor knows before writing up another repair order for that customer.
Track warranty claims separately
Keep a simple claim list with authorization number, date filed, amount and status, and follow up with the administrator on a set schedule.
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
Receivables over 60 days
Older balances are harder to collect and tie up cash.
Warranty claim days to payment
Shows whether claims are filed completely and followed up.
Invoices returned for missing information
Each one delays payment by days or weeks.
Where people stay in control
- Credit holds, payment plans and write-offs are always decided by the owner.
- Reminders use agreed, polite wording and stop as soon as a payment or dispute is recorded.
- Payment card details are handled only inside the payment processor, never in emails or notes.
Example
Illustrative: a local fleet on net 30
For example, a shop services a plumbing company's 15 vans. Invoices go out from the shop system, but several are rejected because the PO number is missing, and the balance drifts past 60 days. With the PO field required for that account, a reminder five days after the due date and a past-due flag at check-in, the bookkeeper tracks DSO for that fleet monthly. This scenario is illustrative.
Tools typically involved
What the first 30 days look like
In the first 30 days we would pull your aged receivables from QuickBooks Online, list every account customer and warranty administrator, review a sample of returned or late invoices and agree a reminder schedule and DSO target with the owner.
Common questions
Can this go in QuickBooks Online or our shop system?
Often both already have pieces of it. QuickBooks Online can send invoice reminders, and most shop systems sync invoices and payments to it. The work is usually in making sure invoices are complete, syncing is reliable and the reminder schedule fits your fleet customers. We would add automation only where those tools fall short.
Should we be using AI to write collection emails?
For most shops, a few well-written templates are enough. AI can help draft a personal note for a specific situation, such as a long-standing fleet with a dispute, but the owner should review it. Consistency and timing matter more than clever wording.
What about warranty companies that pay slowly?
Warranty administrators vary widely. The main levers are filing a complete claim with authorization numbers and documentation the first time, and following up on a fixed schedule. Tracking days to payment by administrator also helps the shop decide how to handle each company's customers at the counter.
The business case
Does it pay for itself?
Illustrative defaults for an auto repair shop. 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
Accounting and CPA firmsArchitecture firmsCommercial 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
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