AR & DSO Discipline — Get Paid Faster

SKILL.md

---
name: ar-dso-discipline
description: "Activate when: customers pay late and cash is tight; 'clients don't pay on time', collections, invoicing terms, reducing days-sales-outstanding; overdue receivables. Do NOT activate when: paid instantly at point of sale (no receivables)."
---

# AR & DSO Discipline — Get Paid Faster

## Overview
Days Sales Outstanding (DSO) is the average time to collect after a sale. For any business that invoices, uncollected receivables are **cash you earned but can't use** — and late payment is the quiet killer of otherwise healthy SMBs. Getting paid faster is usually the cheapest source of cash a founder has: no dilution, no debt, just discipline and better terms.

## The Process
1. **Measure DSO and aging** — average collection time + a bucketed aging report (0–30, 31–60, 61–90, 90+).
2. **Invoice instantly and correctly** — same-day, clear terms, right contact; delays compound. *Gate: invoicing days after delivery silently adds days to DSO.*
3. **Shift terms upstream** — deposits, milestones, upfront, autopay/card-on-file; reduce net terms where you can.
4. **Systematize follow-up** — automated reminders before and after due date, escalating cadence (pairs with an AR/AP operator agent). *Gate: ad-hoc, emotional chasing = inconsistent collections; make it a scheduled sequence.*
5. **Make paying easy** — online payment, multiple methods, one click.
6. **Enforce consequences** — late fees, work-stop, or credit holds for chronic offenders; fire unprofitable late-payers.

## When to Use
- Cash tight while revenue looks fine
- Growing overdue/aged receivables
- Service/B2B businesses on net terms

## Applying It Well
- Deposits/upfront beat any collection tactic — design them in.
- Consistent automated reminders outperform sporadic personal chasing.
- Track DSO monthly as a core cash KPI, not an afterthought.

## Red Flags
- No aging report; not knowing who owes what.
- Invoicing late or with errors that restart the clock.
- Tolerating chronic late-payers without consequence.

## Verification
- [ ] DSO + aging report in place
- [ ] Same-day accurate invoicing
- [ ] Deposits/upfront/autopay applied where possible
- [ ] Automated escalating follow-up sequence running

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*Part of **deciqAI Knowledge Skills** — 223 open-source thinking skills that make rigor executable for AI agents. The same skills power every deciqAI agent, which runs them autonomously to operate your company. **See it run → https://www.deciqai.com/c/ar-dso-discipline** · ⭐ Star the repo → https://github.com/deciqAI/knowledge-skills · Contributions welcome.*