Accounts Receivable Procedures Index
Purpose: Billing, collections, and payment tracking procedures
Audience: AR Team, Project Managers, Executives
Documents in This Section
| Document | Description | Priority |
|---|---|---|
01-pay-application-process.md | AIA G702/G703 billing workflow | Critical |
02-collections-procedure.md | Past-due account follow-up | High |
03-schedule-of-values-setup.md | Creating and managing SOV | Critical |
04-retention-tracking.md | Tracking and collecting retention | High |
05-wip-reporting.md | Work-in-progress reporting | Critical |
06-advanced-wip-analysis.md | Advanced WIP analysis | High |
07-job-costing-procedures.md | Job costing procedures | High |
08-cash-flow-management.md | Cash flow management | High |
09-banking-relationships.md | Banking relationships | Medium |
09-financial-reporting.md | Financial reporting | High |
10-month-end-close.md | Month-end close procedures | High |
11-audit-preparation.md | Audit preparation | Medium |
12-financial-statement-analysis.md | Financial statement analysis | Medium |
13-banking-covenant-compliance.md | Banking covenant compliance | Medium |
14-cash-flow-forecasting.md | Cash flow forecasting | High |
15-internal-audit-procedures.md | Internal audit procedures | Medium |
16-cash-management.md | Cash management | Medium |
17-equipment-cost-analysis.md | Equipment cost analysis | Medium |
18-credit-management.md | Credit management | Medium |
19-working-capital-management.md | Working capital management | Medium |
20-variance-analysis.md | Variance analysis | Medium |
21-line-of-credit-management.md | Line of credit management | Medium |
22-labor-productivity-analysis.md | Labor productivity analysis | Medium |
AR Monthly Calendar
| Day of Month | Activity |
|---|---|
| 1-5 | Send billing reminders to PMs |
| 5-15 | Receive PM billing packages |
| 15-20 | Process and submit pay applications |
| 20-25 | Follow up on pending approvals |
| 25-EOM | Collections calls on past-due |
| Last Day | AR aging report to management |
Key Metrics to Track
- Days Sales Outstanding (DSO) - Target: < 45 days
- Billing vs. Earned Revenue - Target: 95%+
- Collection Rate - Target: 98%+
- Retention Collected at Closeout - Target: 100%
- Disputes Outstanding - Target: < 5% of AR
Quick Reference: Billing Document Checklist
Standard Pay Application Package:
- AIA G702 Cover Sheet (signed)
- AIA G703 Schedule of Values (updated)
- Conditional lien waiver (current period)
- Unconditional lien waiver (previous period)
- Sub lien waivers (all tiers)
- Certified payroll (if prevailing wage)
- Supporting documentation per contract
Related Software
- Project Tracking - BLDR Pro, Procore, or your PM platform
- Lien Waivers - Your PM system or dedicated lien waiver software
- Accounting - QuickBooks, Sage, Foundation