Days sales outstanding
The headline measure of how quickly work turns into cash.
Consulting and professional services firms · Invoicing and collections follow-up
Bill on time and get paid faster without straining client relationships
Consulting firms often do excellent work and then wait 60 or 90 days to be paid for it. Time entries are late, so invoices go out late. Milestone invoices wait for a partner to confirm the milestone was met. Large clients require purchase order numbers and vendor portal uploads. Follow-up is awkward because the partner chasing payment is also the person managing the relationship.
How it often works today
- Consultants submit time late, so monthly invoices wait until the second week of the month while operations chases missing entries.
- Milestone invoices sit until a partner confirms the deliverable was accepted, which can add weeks to billing.
- Invoices are rejected by client accounts payable because a PO number, vendor ID or portal upload was missing, restarting the payment clock.
- Overdue invoices are followed up irregularly by partners who are reluctant to raise payment with clients they are actively advising.
We would tighten the path from time entry to paid invoice: timely time capture, pre-billing review, invoice preparation that matches each client's requirements, and polite, consistent follow-up handled by operations. Partners approve any write-downs and step in only when a client conversation genuinely needs them, which protects the relationship and their time.
The improved workflow
Close time on schedule
Automated reminders in BigTime, Harvest or Kantata prompt consultants to submit time by a set day, with managers seeing who is outstanding before billing starts.
Run a pre-billing review
Each engagement's draft invoice is checked against the SOW, budget and rates, with variances flagged for the engagement manager or partner to approve or write down.
Match client billing requirements
Store each client's PO numbers, billing contacts, portal rules and invoice format, so invoices go out complete the first time.
Follow up consistently
Operations sends polite reminders at agreed intervals using reviewed templates, and escalates to the partner only when an invoice passes a set number of days overdue.
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 from period end to invoice sent
Late billing is often the largest controllable delay.
Invoices rejected by client AP
Each rejection resets the payment clock.
Realization rate
Shows whether write-downs are shrinking as billing gets cleaner.
Where people stay in control
- Partners approve every write-down, discount or change to billed amounts before an invoice goes out.
- Follow-up messages use reviewed templates and pause automatically for clients in active disputes or sensitive relationship moments.
- Payment details and banking information stay in the accounting and payments systems, never in email threads or AI tools.
Example
Shortening the billing cycle
For example, in an illustrative case a 20-person management consultancy typically sends monthly invoices around the twelfth and averages a long collection cycle. After setting a time submission deadline, running pre-billing review in the first two business days and storing each client's PO and portal requirements, invoices go out by the fourth. Operations follows up at agreed intervals, and partners only hear about the few invoices that genuinely need their attention.
Tools typically involved
What the first 30 days look like
In the first 30 days we would measure DSO, invoice timing and rejection reasons from recent months, map how time becomes an invoice, collect each major client's billing requirements, and agree reminder intervals and templates with the partners.
Common questions
Won't follow-up emails upset our clients?
Polite, predictable reminders from operations are normal business practice and often welcomed by client accounts payable teams. They also take pressure off partners. Templates are reviewed in advance, and any client in a sensitive situation can be paused from automatic reminders.
Should we move to retainers or prepayment instead?
That can help for some types of work, and it is worth discussing as part of pricing. It is a commercial decision for the partners rather than an automation question. Even with retainers, timely invoicing and follow-up still matter, so the process improvements apply either way.
Can AI help with collections?
In limited ways. AI can draft reminder messages, summarize an account's payment history, or flag invoices likely to be late based on a client's past behavior. Decisions about escalation, write-offs and client conversations stay with people, and most of the gain usually comes from process discipline.
The business case
Does it pay for itself?
Illustrative defaults for a consulting 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
Accounting and CPA firmsArchitecture firmsAuto repair shopsCommercial cleaning companiesDental 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.