Common Accounts Receivable Challenges (and What to Do Instead)
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Managing accounts receivable is one of those business functions that doesn’t feel urgent until cash flow becomes a problem. Delivering services where clients pay per hour, project or month, requires keeping up with your accounts receivable (AR) to make sure you grow without the extra stress.
We have listed the most common AR challenges and what you can do differently to stay ahead.
1. Clients pay late, even with clear terms
The problem: You’ve done the work, sent the invoice on time, and made the payment terms crystal clear. But the due date comes and goes without a payment.
Try this instead: Send a short, friendly reminder a few days before the due date. Something as simple as “Just checking in - this invoice is due soon” can go a long way. A lot of late payments aren’t out of spite, they’re simply buried in the client’s busy inbox. Getting ahead of the due date helps your client plan for it and avoids awkward chasing later..
2. Invoices get stuck in finance
The problem: You send the invoice, but then radio silence. It turns out the invoice didn’t include the right PO number, or the billing contact left the company.
Try this instead: Before kicking off a new project, confirm exactly how your client’s finance process works. Who handles payments? Do they require specific codes or invoice templates? Getting this info upfront helps you avoid preventable delays and shows the client you’re professional and organized.
3. You wait too long to follow up
The problem: You don’t want to come off as pushy, so you give clients the benefit of the doubt… until weeks pass and you realize they still haven’t paid.
Try this instead: Have a standard, polite follow-up cadence. Send a reminder one day after the due date, then again after 7 days, and maybe one more at 14 days if needed. Keep the tone professional - you're just checking in. Having a process makes it easier to act quickly, and removes the emotional guesswork from following up. Some clients are even grateful that you follow up, because they don’t want to be known as the client who never pays.
4. You’re spending too much time on manual AR
The problem: Your team is still tracking and creating invoices in spreadsheets, manually emailing clients, and copying invoice links around. It’s prone to error and takes up hours you could spend on actual client work.
Try this instead: Look for light automation that fits into your existing flow. You don’t need to overhaul your entire accounting setup, and you especially don’t need AI to take it over completely. Just find a tool that helps you invoice smarter, where you can automate reminders and connect your bank account to understand when invoices get paid and who always pays late. We have compared multiple different invoicing platforms here. Read “Which Invoice Platform Should I Use?” →
5. You (and your client) end up with inflexible payment terms
The problem: Your default of Net 30 is negotiable and you end up giving your client the payment terms they ask for because you feel you need to.
Try this instead: We’re all for strengthening the client relationship, but sometimes it’s even better to give the client multiple options for payment. If a client negotiates payment terms to Net 45-90, it should come at an extra fee, as Net 5 can come at a discount. You can state this in the agreement up front, or keep Net 30 default and invoice with early payment discounts/interest rates for later payments in your invoicing solution.
6. You assume all clients are similarly good at paying on time
The problem: Some clients end up paying late on every single invoice, while some pay right at receipt, despite having the same payment terms. With the clients who always pay late, you’re stuck holding the risk - and don’t know when the payment will come.
Try this instead: Not every client deserves the same terms. New clients can be asked to pay upfront or 50/50 to build trust. Longtime clients with a strong payment history can be offered Net 30. Giving clients tailored terms helps you manage risk without damaging relationships.
7. You’re afraid to offer incentives
The problem: You’ve thought about offering discounts for early payments, but you worry it’ll hurt margins or signal desperation.
Try this instead:
Use early payment discounts strategically. A 1 - 3% discount for payment within 5 - 10 days is often worth it if it means getting cash in the bank faster and knowing when you’ll get paid. But only offer it to clients who might benefit from it, and make it optional. This keeps your terms flexible and positions you as a partner, not just a vendor.
You don’t have to overhaul everything Just addressing a few of these challenges can have a huge impact on your agency’s cash flow and peace of mind. Pick one or two areas to improve and build from there. Better AR management isn’t about working harder, it’s about working smarter.
How Cheque can help Cheque is built for agencies that want more control over how and when they get paid. From clear invoicing to early payment options, it helps you stop chasing and start optimizing. If your current system makes AR a headache, try Cheque alongside it. No switching required - just better cash flow.
Schedule your demo today →
Read “How to Offer Early Payment Discounts” →
We have listed the most common AR challenges and what you can do differently to stay ahead.
1. Clients pay late, even with clear terms
The problem: You’ve done the work, sent the invoice on time, and made the payment terms crystal clear. But the due date comes and goes without a payment.
Try this instead: Send a short, friendly reminder a few days before the due date. Something as simple as “Just checking in - this invoice is due soon” can go a long way. A lot of late payments aren’t out of spite, they’re simply buried in the client’s busy inbox. Getting ahead of the due date helps your client plan for it and avoids awkward chasing later..
2. Invoices get stuck in finance
The problem: You send the invoice, but then radio silence. It turns out the invoice didn’t include the right PO number, or the billing contact left the company.
Try this instead: Before kicking off a new project, confirm exactly how your client’s finance process works. Who handles payments? Do they require specific codes or invoice templates? Getting this info upfront helps you avoid preventable delays and shows the client you’re professional and organized.
3. You wait too long to follow up
The problem: You don’t want to come off as pushy, so you give clients the benefit of the doubt… until weeks pass and you realize they still haven’t paid.
Try this instead: Have a standard, polite follow-up cadence. Send a reminder one day after the due date, then again after 7 days, and maybe one more at 14 days if needed. Keep the tone professional - you're just checking in. Having a process makes it easier to act quickly, and removes the emotional guesswork from following up. Some clients are even grateful that you follow up, because they don’t want to be known as the client who never pays.
4. You’re spending too much time on manual AR
The problem: Your team is still tracking and creating invoices in spreadsheets, manually emailing clients, and copying invoice links around. It’s prone to error and takes up hours you could spend on actual client work.
Try this instead: Look for light automation that fits into your existing flow. You don’t need to overhaul your entire accounting setup, and you especially don’t need AI to take it over completely. Just find a tool that helps you invoice smarter, where you can automate reminders and connect your bank account to understand when invoices get paid and who always pays late. We have compared multiple different invoicing platforms here. Read “Which Invoice Platform Should I Use?” →
5. You (and your client) end up with inflexible payment terms
The problem: Your default of Net 30 is negotiable and you end up giving your client the payment terms they ask for because you feel you need to.
Try this instead: We’re all for strengthening the client relationship, but sometimes it’s even better to give the client multiple options for payment. If a client negotiates payment terms to Net 45-90, it should come at an extra fee, as Net 5 can come at a discount. You can state this in the agreement up front, or keep Net 30 default and invoice with early payment discounts/interest rates for later payments in your invoicing solution.
6. You assume all clients are similarly good at paying on time
The problem: Some clients end up paying late on every single invoice, while some pay right at receipt, despite having the same payment terms. With the clients who always pay late, you’re stuck holding the risk - and don’t know when the payment will come.
Try this instead: Not every client deserves the same terms. New clients can be asked to pay upfront or 50/50 to build trust. Longtime clients with a strong payment history can be offered Net 30. Giving clients tailored terms helps you manage risk without damaging relationships.
7. You’re afraid to offer incentives
The problem: You’ve thought about offering discounts for early payments, but you worry it’ll hurt margins or signal desperation.
Try this instead:
Use early payment discounts strategically. A 1 - 3% discount for payment within 5 - 10 days is often worth it if it means getting cash in the bank faster and knowing when you’ll get paid. But only offer it to clients who might benefit from it, and make it optional. This keeps your terms flexible and positions you as a partner, not just a vendor.
You don’t have to overhaul everything Just addressing a few of these challenges can have a huge impact on your agency’s cash flow and peace of mind. Pick one or two areas to improve and build from there. Better AR management isn’t about working harder, it’s about working smarter.
How Cheque can help Cheque is built for agencies that want more control over how and when they get paid. From clear invoicing to early payment options, it helps you stop chasing and start optimizing. If your current system makes AR a headache, try Cheque alongside it. No switching required - just better cash flow.
Schedule your demo today →
Read “How to Offer Early Payment Discounts” →