WHEN AR IS HIGH AND CASH IS GONE.
High receivables with no cash isn't a slow pay problem. The money exists and it's sitting in invoices nobody has collected. AR is what's owed to you and cash is what you have right now, and the distance between those two numbers is built by three habits: no collection schedule, follow up sent to the wrong contact, and lien rights allowed to expire unused.
Most owners read a rising AR balance as proof that the business is doing well and the money is on its way. Meanwhile overhead keeps spending on its own schedule. Payroll, material invoices, and equipment notes don't wait for a GC's payment run, so the balance sheet gets healthier while the checking account gets thinner. The recovery is usually faster than owners expect, because most uncollected AR isn't disputed at all. It's simply sitting in somebody else's payment queue with nobody asking about it.
WHAT IT MEANS.
Accounts receivable is money your customers owe you that you haven't collected yet, which is why a big AR balance and an empty bank account can both be true on the same day.
A $400K AR balance typically breaks into $180K current at 0 to 30 days, $120K at 31 to 60 days needing follow up, $60K at 61 to 90 days needing escalation, and $40K past 90 days where the lien clock is the only leverage left. Sorting the balance that way turns one intimidating number into four different jobs, each with a different next step.
THE THREE CAUSES.
There's no collection process
Most subcontractors follow up on AR when cash gets thin rather than on a schedule. By day 45 the invoice is aged and the GC has already deprioritized it, which means you're now competing with newer paperwork for the same check run. A calendar based collection process beats panic driven follow up every single time, and it takes less effort because it happens before anything is a crisis.
The follow up goes to the wrong person
Billing reaches the project manager and payment comes out of accounting. The PM files it and accounting never sees it, so the invoice sits nowhere for three weeks. Effective collection means identifying the person who cuts the check rather than the person who received the invoice. Those are almost never the same desk.
Lien rights expire unused
Preliminary notices and mechanic's lien rights run out on a fixed schedule, and most subcontractors let that leverage go without ever using it. A GC who knows you've allowed the lien window to close has no urgency to pay you. The rights cost nothing to preserve and they're worth more than any follow up email you'll ever send.
WHAT IT LOOKS LIKE IN DOLLARS.
Current at 0 to 30 days is $180K. Follow up at 31 to 60 days is $120K. Escalation at 61 to 90 days is $60K. Lien territory past 90 days is $40K. The last two buckets hold $100K, which is the money most owners have already stopped believing in.
A $2.3M electrical sub recovered $365K in overdue AR and cleared all debt in 120 days. A $3.4M civil contractor carrying four active MCAs collected $245K in the first 7 days. A $7.1M civil contractor with maxed lines of credit deposited $310K of overdue receivables in month one. None of that came from new work.
HOW AR GETS PULLED IN FASTER.
Confirm receipt of the pay app with the payment contact rather than the project manager. Verify the pay period, the amount, and the expected payment date, then document the response. This isn't a collections call. It's a confirmation call that puts the invoice in front of the right person while it's still current.
Written follow up goes to both the payment contact and the PM. Reference the pay app number, the amount, and the 30 day mark, and request a specific payment date rather than a general assurance. Any billing dispute gets addressed immediately, because billing disputes left sitting are the most common reason AR ages past 60 days.
Escalate to the GC project executive and issue a preliminary lien notice if the jurisdiction allows one. A preliminary notice at day 45 on a $500K contract creates urgency that no follow up email can match. Check the lien deadline while you're doing it, because in most states it falls 20 to 30 days before substantial completion.
A formal demand letter goes out, along with a stop work notice if the contract allows one. At this point the relationship has already been damaged by the nonpayment itself, so the only open question is whether you collect the money or write it off. Owners who hesitate here are protecting a relationship the other side already stopped protecting.
FLAT MONTHLY FEE. NO SURPRISES.
Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing, no payroll, and no add-ons.
Pricing
| Last 12 months revenue | Monthly fee |
|---|---|
| Up to $1M | $1,900 to $2,900 |
| $1M to $3.5M | $2,600 to $3,900 |
| $3.5M to $6.5M | $3,800 to $5,700 |
| $6.5M to $9.5M | $5,100 to $7,100 |
| $9.5M to $12.5M | $6,100 to $8,500 |
| $12.5M to $15.5M | $7,400 to $11,000 |
| $15.5M to $18.5M | $9,400 to $13,500 |
| $18.5M+ | Quoted individually |
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items.
You stop guessing.
You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions rather than a report.
Your bookkeeper keeps doing the books.
You stop touching the books.
Everything in Core, and we run the bookkeeping and the controllership as well. Nobody in your office is answering coding questions or chasing a reconciliation at month end.
We do the books. No payroll.
Every job shows its margin while it's still running.
Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.
We do the job costing.
FREQUENTLY ASKED.
