Credit and Collections Checklist

Run the aging detail report in QuickBooks Online, Sage Intacct, or NetSuite as of month-end. Tie the total to the GL receivables control account before working the buckets — an aging that doesn't tie indicates an unposted invoice batch or a misapplied payment.

Variance between the sub-ledger total and the GL balance must be zero or fully explained. Common causes: journal entries posted directly to the receivables account, deposits applied to the wrong customer, credit memos not yet applied.

Compute DSO and compare to trailing-three-month average. A jump of more than 5 days warrants a written explanation in the close commentary.

These are the working list for the month. Pull the customer's payment history, prior collections notes, and credit limit utilization before drafting outreach.

Refresh credit bureau data on every customer in the 60+ bucket and on any account utilizing more than 80% of its credit limit. Watch for PAYDEX score drops and new UCC filings against the customer.

Apply the firm's scoring matrix: payment history (40%), bureau score (30%), trade references (20%), tenure (10%). Limits above $50K require controller sign-off; limits above $250K require CFO approval per the credit policy.

Set the customer to credit hold in the GL and notify sales the same day. Record the reason and the conditions for release (full payment of 90+ balance, executed payment plan, etc.) in the customer notes.

Automated email reminder with statement attached and a payment link (Bill.com, Stripe, or QuickBooks Payments). No phone call required at this tier; the goal is friction-free self-service before escalation.

Use the approved call script. Confirm receipt of invoice, identify any disputes, and obtain a verbal commit-to-pay date. Log the call in Karbon or the practice management system the same day — undocumented calls might as well not have happened.

Send via certified mail with return receipt and email PDF copy. Letter must reference the contract terms, late-fee accrual, and the cure period before further escalation. Avoid any FDCPA-style language if the receivable is consumer rather than commercial.

Date, time, person contacted, summary of conversation, commit-to-pay date. The contact log is the audit trail when the account moves to legal or third-party collection.

For each account in the 90+ bucket, mark whether the customer responded with a payment, payment plan proposal, or substantive dispute — or whether all outreach has gone unanswered.

Include signed credit application, executed contract or PO, all invoices, statements, demand letter with delivery proof, and the contact log. Counsel will not review an incomplete file; partial packets are the most common reason legal action stalls.

FDCPA applies to consumer debt; commercial B2B receivables are governed by state collection statutes and the UCC. Confirm the venue's statute of limitations on the contract type and any pre-suit notice requirements.

CFO sign-off required before placing the account with the agency. Confirm the agency's contingency rate, the cutoff for litigation referral, and that their licensing covers the customer's state.

Apply the firm's reserve methodology — typically a percentage-of-aging schedule (e.g., 1% of 0-30, 5% of 31-60, 25% of 61-90, 50% of 91-120, 100% of 120+) adjusted for specific identified risks. Document the methodology consistently with prior periods or disclose the change.

Debit bad debt expense, credit allowance for doubtful accounts. Memo references the aging snapshot and the reserve calculation workpaper. Never plug to retained earnings.

For each customer balance being written off, attach the documented basis: bankruptcy notice, agency uncollectible report, or written authorization. Controller signature on the write-off log is required before the entry posts.

DSO, CEI (collections effectiveness index), aging mix, bad-debt-to-revenue, and dispute-cycle time. Distribute to CFO, sales leadership, and the partner overseeing the engagement.

List every credit limit override, terms exception, or hold release granted during the month. A pattern of exceptions for the same customer or salesperson signals the policy needs an update rather than another override.

Standing agenda: top 10 exposures, watchlist movements, write-off summary, policy change proposals, regulatory updates (FDCPA amendments, state collection-license changes). Minutes filed in the SOX-equivalent control evidence folder.