Bookkeeping, payroll, and CFO services for small businesses across Los Angeles County.

Call or Text: (626) 353-9790

How do I track accounts receivable and follow up on late payments?

Tracking accounts receivable starts with an aging report. This report groups unpaid invoices by how long they’ve been outstanding, typically current, 1-30 days, 31-60 days, 61-90 days, and over 90 days. Run this weekly and you’ll know exactly who owes you money and how long they’ve owed it.

Clear payment terms prevent confusion before it starts. Put your terms on every invoice. Net 15, Net 30, whatever works for your business. Include accepted payment methods and make it easy for customers to pay electronically. The harder it is to pay you, the longer people take.

Build a consistent follow-up schedule and stick to it. Send a friendly reminder a few days before the invoice is due. On the due date, send another reminder. At 7 days past due, make a phone call. At 15 days, send a formal past-due notice. At 30 days, you need to decide whether to escalate or adjust your approach based on the customer relationship.

Document every interaction. When you call, note the date, who you spoke with, and what was said. This protects you if things escalate and helps you remember what’s been promised. Some customers will tell you the check is in the mail every week for two months if you don’t track what they’ve said. Good accounts receivable management requires this kind of discipline.

Make it easy to pay. Accept credit cards, ACH, and online payments even if the processing fees sting a little. Getting paid two weeks faster is usually worth the 2-3% fee. Customers who have to mail a check will take longer than customers who can click a link and pay in 30 seconds.

For chronic late payers, consider requiring deposits or retainers before starting work. You shouldn’t have to chase the same customers every single month. If someone is consistently 60+ days late, that’s a business decision about whether the relationship is worth the cash flow strain.

QuickBooks and similar accounting software can automate much of this. You can set up automatic payment reminders, track who’s paid and who hasn’t, and run aging reports without manual work. But the software only helps if someone is actually reviewing the reports and making the calls.

If AR management takes more time than you have, that’s when outsourcing makes sense. Los Angeles QuickBooks bookkeepers can handle invoicing, tracking, and collections so money comes in faster and you spend less time chasing it yourself.

LA's Small Business Bookkeeper

The Next Step:
A Short Conversation

Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a clear price for the work.

More Questions

How do I set up invoicing and accounts receivable in QuickBooks?

Start with your customer list and payment terms, then customize your invoice template and enable online payments. The accounts receivable aging report becomes your tool for tracking who owes what and following up on overdue invoices.

Read answer

How do I track retainer fees and earned income for my law practice?

Retainers go into your IOLTA trust account as a liability until earned. When you bill time against the retainer and transfer funds to operating, that becomes revenue. The tracking requires separate accounts and monthly reconciliation.

Read answer

What is seller's discretionary earnings and how is it calculated?

Seller's discretionary earnings represents the total financial benefit available to a single owner-operator of a small business. It's calculated by taking net income and adding back owner salary, personal expenses, and non-cash items.

Read answer

How do short-term rental owners handle bookkeeping for Airbnb income?

Record each Airbnb payout with gross booking income and platform fees tracked separately. Keep expenses organized by property and reconcile monthly against Airbnb's transaction reports.

Read answer

How do I reconcile my POS system with my accounting software?

POS reconciliation means matching your gross sales to what actually hits your bank account after payment processor fees, tips, and timing differences. The key is tracking sales and fees separately rather than just recording net deposits.

Read answer

How often should I reconcile my law firm's IOLTA account?

At minimum, monthly. The California State Bar requires a three-way reconciliation each month. High-volume firms handling multiple client matters should reconcile weekly or even daily to catch errors before they compound.

Read answer

Villa Group is a San Marino accounting firm serving small businesses across Los Angeles County. We handle bookkeeping, payroll, CFO services, and business sale preparation. Led by Christian Villalba, MBA, with over a decade of experience and 400+ clients served.

Client Reviews

5-Star Rated Firm

Social

© 2026 Villa Group LLC