Customer payment reminders and outstanding receivables tracking connected to accounting: fewer forgotten unpaid invoices for a services SMB

Implementation example. This scenario describes a request we receive in this form. It is not a project delivered to a named client, and no results are claimed.

The context

A services SMB (agency, consulting firm, maintenance company, training provider) invoices several dozen customers a month. The books are kept in Pennylane, with a chartered accountant. Sales reps or project managers handle customer relationships in a CRM or a spreadsheet.

No one is in charge of collections full time. The CEO, the administrative assistant or the person who does the bookkeeping send payment reminders when they have time.

The day-to-day problem

Overdue invoices are only spotted at the end of the month, when looking at the aged balance. Payment reminders go out late, in a tone that depends on the mood of the day. Some customers get reminders even though they have already paid, because the bank reconciliation had not been done. Others never get one.

Sales reps don't know that a customer has three overdue invoices when they propose a new project to them. Management has no clear view of upcoming cash flow.

What the SMB wants

“I want every overdue invoice to get a reminder at the right time, in the right tone, without my having to think about it, and to know at any moment who owes us what.”

The solution, step by step

1. Connect the accounting system. The tool connects to Pennylane through its API to read customer invoices, their due dates and their payment status. It reads the data regularly, so the status is always up to date before each payment reminder. Nothing is changed in the accounting records.

2. Define the payment reminder rules. With management, we set the schedule (reminder before the due date, first payment reminder, firm payment reminder, escalation), the exceptions (strategic customers, ongoing disputes, agreed payment plans) and the person who signs off on each step.

3. Prepare payment reminders with AI. For each relevant invoice, the AI drafts a tailored email: a friendly tone for a first reminder, firmer afterward, grouping a customer's invoices together, recapping the history of exchanges. The late-payment wording (penalties, fixed debt-recovery indemnity in B2B) is the wording approved by the finance department.

4. Validate before sending. The day's payment reminders land in a validation queue. The person in charge reviews them, edits them if needed and sends them in one click. Sensitive payment reminders (large amounts, strategic customers) are flagged.

5. Keep sales reps informed. In the CRM, each customer record shows outstanding receivables and overdue amounts. A sales rep sees the situation before proposing a new project.

6. Track outstanding receivables. A dashboard shows outstanding receivables by customer and by age, the payment reminders sent and the payments received. A weekly summary goes to management.

What the AI does, what the team does

The AI drafts the payment reminders, groups invoices and summarizes a customer's history. The tool reads the accounting data and keeps the schedule. The team sets the rules, validates each send and handles special cases. The customer relationship stays human.

The data and access required

access to the Pennylane API, with read permissions;
access to the CRM or customer file;
a sending address for payment reminders;
the general terms of sale and the late-payment wording;
a few payment reminders already sent, to set the tone.

The project timeline

Weeks 1 and 2: assessment. Analysis of outstanding receivables, the current process and tools. This is the format of our audit (8 to 10 days).
Weeks 3 and 4: connection and rules. Connection to Pennylane and the CRM, payment reminder rules, message templates.
Weeks 5 and 6: go-live. Payment reminders with manual validation, adjustments, dashboard.
Then: follow-up. Fine-tuning rules and messages based on feedback.

The deliverables

a read connection to Pennylane;
documented payment reminder rules;
payment reminder templates for each step, in the company's tone of voice;
a payment reminder validation queue;
outstanding receivables displayed in the CRM;
a dashboard and a weekly summary.

The metrics to track

the amount of overdue receivables, by age;
customers' average payment time;
the number of invoices that get a reminder on time;
the number of payment reminders sent in error;
the time spent on collections each week.

These metrics are recorded at the start, then tracked monthly. No results are promised in advance.

Limitations and prerequisites

The quality of payment reminders depends on the quality of the accounting: invoices and payments must be entered and reconciled on time.
Disputes and payment plan negotiations are still handled by a person.
Litigation-based debt collection is outside the scope of this project.
The same approach works with other accounting tools that have an API; Pennylane is used here as an example.

Indicative budget

The assessment corresponds to our audit, from €1,000 excl. VAT. Implementation is quoted on request, depending on the tools to connect.

Frequently asked questions

Do the payment reminders go out on their own? No, not at first. They are validated one by one. Some steps can then be automated if management wishes.

Does the tool change the accounting records? No. It reads invoices and payments, without writing anything to Pennylane.

What about the chartered accountant? They remain in charge of the accounting. The outstanding receivables dashboard can also be shared with them.

Can reminders be made by phone? The tool prepares the list of calls to make and a summary of each customer's situation.

What next?

If your payment reminders depend on how much time is left at the end of the month, the audit lets you see in 8 to 10 days what can be automated with your current tools.

Client challenge