Bookkeeper AR Process for Trades and Contractors
A back-office AR workflow for growing trade businesses.
Trade specific context: bookkeeping AR workflow
Bookkeepers create real cash impact when AR notes, promises, and next actions are standardized. Good handover quality prevents accounts from going stale.
USA vs Australia terminology
Common USA wording: AR reconciliation, collection notes
Common Australia wording: debtors ledger, follow up notes
Using familiar local wording in quotes, invoices, and reminders reduces confusion and helps approvals move faster.
Recommended billing model
Model: back office follow up process
- Agree on payment terms and approval steps before work starts.
- Invoice immediately when each billable stage is complete.
- Schedule reminders before the due date and on the due date automatically.
- Escalate overdue accounts on a clear, fixed schedule.
Common blocker and fix
Frequent blocker: notes not centralized
Fix: Attach the right proof and references when you send the invoice, then confirm receipt with the approver the same day.
Example: Every overdue account has a dated note and next follow-up date, allowing seamless handoff between admin staff.
Common questions for bookkeeping AR workflow
What should bookkeepers track in trade AR?
Track invoice status, reminder history, promise to pay dates, and outcomes.
How can bookkeepers help contractors get paid faster?
Run weekly overdue reviews and trigger predefined escalation actions.
Should AR notes be standardized?
Yes. Standard notes improve handover and accountability.
Metrics to review weekly
- Overdue value by aging bucket.
- Average days to payment by client type.
- Reminder response rate and promise to pay completion.
- Dispute volume and resolution lead time.
Note: Regulatory requirements differ by state and country. Use local legal and accounting advice for contract and statutory compliance.
Invoice Chase helps trade businesses send consistent reminders with less admin overhead.
