Cash Flow
Profit First
Mike Michalowicz
A simple discipline for cash flow and actually keeping profit.
Recommended for: Accounts Receivable Are Getting Too Old
All Challenges
Money
Accounts Receivable Are Getting Too Old
Money owed to you is aging. Invoice fast and follow up every week. (Not legal advice.)
The Challenge
Money owed to you is aging. Invoice fast and follow up every week. (Not legal advice.)
Why This Happens
- Invoices sent late
- No due-date tracking
- No one responsible
- No escalation
Questions to Ask Yourself
- 1.How much is over 30, 60, 90 days?
- 2.How fast do you invoice after work is done?
- 3.Who follows up on overdue invoices?
What to Do First
1
Pull an aging report.
2
Call the three oldest balances.
3
Invoice anything not billed.
Step-by-Step Solution
- 1
Invoice quickly.
- 2
Confirm receipt.
- 3
Track due dates.
- 4
Hold a weekly AR review.
- 5
Assign responsibility.
- 6
Escalate overdue balances.
- 7
Document conversations.
Three Levels of Solutions
Quick Win
Do this today
Call the oldest unpaid invoice today.
Build the System
Next 30 days
Hold a weekly 15-minute AR review with one owner.
Long-Term Transformation
Where you're headed
Customers pay on time because expectations are clear and follow-up is consistent.
Lessons From the Pass It On Library
From Profit First
Cash in the bank matters more than revenue on paper.
Framework: Allocate first: Profit, Owner Pay, Taxes, Operating Expenses.
From Business by the Book
Communicate clearly and fairly about payment.
Framework: Biblical Business Decision Check
Pass It On Action
Start a weekly AR review this week.
Practical Tool
Collections Follow-Up Checklist
Fill it in here, then download or print. Your answers stay on your device.
Your Action Plans
Sign in to check off steps and save progress to My Growth Plan. Sign in
7-Day Action Plan
- Day 1 — Identify the problem: write down exactly how “Accounts Receivable Are Getting Too Old” shows up in your business.
- Day 2 — Review the numbers: gather the facts, figures, and examples connected to this challenge.
- Day 3 — Find the root cause: answer “How much is over 30, 60, 90 days?”
- Day 4 — Choose one change: Pull an aging report.
- Day 5 — Assign responsibility: name ONE owner, a deadline, and the expected result.
- Day 6 — Implement: Call the three oldest balances.
- Day 7 — Review what happened: what worked, what didn’t, and what you’ll do next week.
30-Day Action Plan
Week 1 — Diagnose
- Answer: How much is over 30, 60, 90 days?
- Answer: How fast do you invoice after work is done?
- Answer: Who follows up on overdue invoices?
- Complete the 7-Day Action Plan.
Week 2 — Build
- Hold a weekly 15-minute AR review with one owner.
- Invoice quickly.
- Confirm receipt.
- Track due dates.
- Hold a weekly AR review.
Week 3 — Implement
- Assign responsibility.
- Escalate overdue balances.
- Document conversations.
- Train the people involved and assign owners.
Week 4 — Measure & Improve
- Compare results to where you started.
- Write one lesson learned.
- Adjust the process.
- Share what you learned with someone in the fellowship.
Biblical Principles
Wisdom for the journey — encouraging stewardship, integrity, and service, never a promise of guaranteed success.
#39 · Integrity
Practice fairness
Proverbs 16:11
#41 · Money Management
Know the financial condition of your business
Proverbs 27:23–24
#65 · Customers
Keep your commitments
Matthew 5:37
Related Challenges
Recommended Books
Approved Bookshelf resources related to this challenge.
Faith & Business
Business by the Book
Larry Burkett
Biblical principles for running a business with integrity.
Recommended for: Accounts Receivable Are Getting Too Old
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