Templates and analytical tools only - not personalized financial, tax, accounting, or legal advice. Collection language carries FDCPA (third-party debt collectors) and state UDAP (original creditors in CA, NY, FL, TX + others) exposure. Threatening legal action you do not intend or are not authorized to take is a textbook FDCPA §1692e violation pattern. Review collection templates with counsel before sending. Bad-debt write-off and 1099-C issuance rules vary by basis of accounting.

Finance - Receivables Management

Analyze AR aging, calculate Days Sales Outstanding (DSO), and generate compliant collection emails for overdue invoices.

When to use

• Monthly AR aging review
• Identifying invoices at risk of becoming bad debt
• Drafting collection emails (first reminder through final notice)
• Calculating DSO and benchmarking against industry standards

Required inputs

• Jurisdiction: US (with state) / UK / EU-country / CA / AU / other - collection law differs.
• Basis of accounting: cash / accrual / modified cash - determines bad-debt deductibility.
• Invoice list - paste as a table or describe: client name, invoice number, amount, invoice date, due date, status (open / partial / overdue), whether the underlying contract specifies late fees and any contractual collection terms.
• Total monthly revenue (for DSO calculation)
• Period: the as-of date for the aging analysis
• Client type: B2B / B2C - FDCPA and state UDAP exposure higher for consumer debts.

FDCPA / UDAP gate - read before generating any collection language