--- type: Template title: Accounts Receivable Action Plan Template (Free) description: A free accounts receivable action plan template: a 10-step collections cadence from invoice to escalation, plus an overdue tracker. Download for Excel or Google Sheets. resource: https://accounting.events/resources/accounts-receivable-action-plan-template/ tags: [accounts receivable action plan template, collections action plan, AR collections cadence, debtor follow up template, accounts receivable process template] timestamp: 2026-09-28 author: Harry P. Smart fact_checked_by: Julie Turnbridge fact_checked: 2026-10-26 --- AR Action Plan # Accounts receivable action plan template A repeatable collections cadence from invoice to escalation, plus an overdue tracker. Stop chasing invoices ad hoc and start collecting on a schedule that gets you paid. By Harry P. Smart, CPA and Lead Reviewer. Fact-checked by Julie Turnbridge on October 26, 2026. Published June 9, 2026. Updated September 28, 2026. 7 min read. Quick answer **An accounts receivable action plan template is a structured collections plan that sets out exactly when and how to follow up on every invoice, from the day it is issued through to escalation if it goes unpaid.** Instead of chasing customers ad hoc, you follow a fixed cadence: a pre-due reminder, a due-date nudge, escalating overdue reminders at day 3, 7, 14, and 30, then formal notices, credit hold, and collections. The template pairs that cadence with an overdue tracker. It is free, works in Excel or Google Sheets, and is pre-filled with a 10-stage sequence you can adapt to your terms. If your invoices are in Xero or QuickBooks Online, Paidnice runs this cadence for you, sending each reminder, statement and late fee on schedule per customer group. Free AR action plan template Excel (.xlsx) with a 10-stage collections cadence, an overdue tracker , and a how-to guide. Plus a CSV. No sign-up. [Download Excel](https://accounting.events/resources/accounts-receivable-action-plan-template/ar-action-plan-template.xlsx) [Download CSV](https://accounting.events/resources/accounts-receivable-action-plan-template/ar-action-plan-template.csv) ## Key facts - The template has 10 stages, from invoice issued (day 0) to collections or legal referral at +90 days. - A customer gets seven contacts (stages 2 to 8) before the credit hold at +60 days. - UK businesses can claim statutory interest of 8% plus the Bank of England base rate on late B2B invoices ([gov.uk](https://www.gov.uk/late-commercial-payments-interest-debt-recovery)). 61% Share of US B2B invoices paid late. A consistent follow-up cadence is the cheapest way to move more of them into the on-time column. Source: [Crestmont Capital, 2026 accounts receivable data](https://www.crestmontcapital.com/blog/accounts-receivable-aging-data) ## The 10-stage collections cadence This is the core of the template: a repeatable sequence for every invoice. Timing is measured from the due date (day 0), with negative days before it and positive days after. Adjust the intervals and tone to suit your customers. | Stage | Timing | Channel | Action | | --- | --- | --- | --- | | **1. Invoice issued** | Day 0 (issue) | Email | Accurate invoice, clear due date and terms, pay-now link | | **2. Pre-due reminder** | 3 days before due | Email | Friendly heads-up that payment is due soon | | **3. Due date** | Due date | Email | Polite reminder that payment is due today | | **4. First overdue** | +3 days | Email | Note it is overdue; restate amount and pay link | | **5. Second reminder** | +7 days | Email + phone | Call to confirm and request a payment date | | **6. Statement** | +14 days | Email | Full statement of all open and overdue invoices | | **7. Escalation** | +30 days | Phone + email | Escalate to manager; apply late fee or interest if terms allow | | **8. Final notice** | +45 days | Formal email | Final demand with a deadline before further action | | **9. Credit hold** | +60 days | Internal + email | Pause new orders until the account clears | | **10. Collections / legal** | +90 days | External | Refer to a collections agency or legal process | Why a fixed cadence works Collection probability falls fast: an invoice that is 90+ days overdue has under a 30% chance of being collected, versus 95% or more when current. Source: [Crestmont Capital, collection probability by aging bucket](https://www.crestmontcapital.com/blog/accounts-receivable-aging-data) ### The overdue tracker The second tab is a tracker so nothing slips. Each overdue invoice gets a row with its current stage, last contact, any promise-to-pay date, the next action date, an owner, and a status. Work it oldest-and-largest first, because roughly 80% of overdue value usually sits with about 20% of customers. ### Example: three overdue invoices in the tracker | Customer | Invoice | Amount | Days overdue | Current stage | Next action | | --- | --- | --- | --- | --- | --- | | Harbor Print | INV-2041 | $4,200 | 4 | 4. First overdue | Stage 5 call in 3 days | | Northside Dental | INV-2017 | $9,800 | 33 | 7. Escalation | Stage 8 final notice in 12 days | | Ridge Fabrication | INV-1986 | $15,500 | 62 | 9. Credit hold | Stage 10 referral in 28 days | | **Total** | | **$29,500** | | | | Ridge Fabrication holds $15,500, or 52.5% of the $29,500 total, so it gets the first call. ## What should an AR action plan include? A complete plan has three parts: a **collections cadence**, a **tracker** and clear **escalation rules**. ### Core components of an AR action plan Every at-risk invoice in the plan needs five fields: - **Owner:** the named person who chases it. - **Next action date:** when the next contact is due. - **Status:** where the invoice sits in the cadence. - **Escalation trigger:** the day count that moves it to the next stage. - **Channel:** email, phone or formal notice for the next contact. ## How do I reduce days sales outstanding (DSO)? Invoice immediately and accurately, set short clear terms, offer easy online payment, and follow up on a fixed schedule rather than waiting for invoices to age. Prioritize the oldest and largest balances. Track your progress with the [AR turnover ratio](https://accounting.events/resources/accounts-receivable-turnover-ratio/), where higher means faster collection. ## When should I charge late fees or interest? Only if your agreed payment terms allow it, and typically from the escalation stage onward (around 30 days overdue). State the late-fee or interest rate on the invoice and in your terms before you apply it. ## Who should own collections? A named person or AR team should own day-to-day follow-up, with a manager owning escalation from the final-notice stage. Keep collections separate from the person who records payments where you can, to maintain segregation of duties. The tracker has an Owner column so every overdue invoice has a clear point of accountability. Source: [AccountingTools, separation of duties](https://www.accountingtools.com/articles/what-is-separation-of-duties.html) ## How do I prioritize which customers to chase? Use the 80/20 rule: about 80% of your overdue balance is usually owed by 20% of customers, so chase the largest balances in the oldest buckets first. Pair this plan with an [aging report](https://accounting.events/resources/accounts-receivable-aging-report-template/) to see that priority order at a glance, then load the top accounts into the tracker. ## Can I automate this cadence? Yes. Accounts receivable software can send the reminders, apply late fees and flag accounts that need a call. See our [independent guide to AR software](https://accounting.events/reviews/best-accounts-receivable-software/) for tools that do this on Xero and QuickBooks. ## What mistakes should you avoid with this template? - **Chasing the smallest invoice first.** Ridge Fabrication's $15,500 is at 62 days. Past 90 days, collection odds fall below 30%, so expected recovery is under $4,650, not $14,725. Fix: sort by days overdue, then amount. - **Charging a late fee the terms do not state.** A 1.5% fee on Northside Dental's $9,800 is $147 the customer can dispute. Fix: put the fee rate on the invoice and in your terms before stage 7. - **Leaving a stage without an owner.** If nobody sends Northside's +45 final notice, $9,800 goes 30 days with no formal demand. Fix: give every row an owner and a next action date. ## Frequently asked questions ### How many times should I follow up before sending an invoice to collections? This template makes seven contacts (stages 2 to 8) before the credit hold at +60 days. Referral to collections or legal comes at +90 days. ### What is the difference between an action plan and an aging report? An aging report sorts unpaid invoices into 0-30, 31-60, 61-90 and 90+ day buckets. An action plan says who contacts each customer, how and when. ### Can I deduct an unpaid invoice as a bad debt? A business bad debt is a loss from a debt that became partly or totally worthless. The [IRS](https://www.irs.gov/taxtopics/tc453) allows the deduction only if the amount was included in your gross income in the current or prior year. Ask your accountant first. **Bottom line:** this template suits a small team that wants a fixed follow-up routine in a spreadsheet. Move to accounts receivable software when reminders start going out late. ## Related reading Independent software reviews and guides from Accounting.Events. [Template ### AR aging report template See which invoices are overdue and by how much, to feed your action plan. Read more →](https://accounting.events/resources/accounts-receivable-aging-report-template/)[Resource ### Accounts receivable turnover ratio Measure whether your action plan is shortening your collection time. Read more →](https://accounting.events/resources/accounts-receivable-turnover-ratio/)[Buyer's guide ### Best accounts receivable software in 2026 Tools that run this cadence automatically on Xero and QuickBooks. Read more →](https://accounting.events/reviews/best-accounts-receivable-software/) **About the author: Harry P. Smart, CPA and Lead Reviewer.** Harry P. Smart is a CPA based between London and New York City. Harry writes and leads the review of the software guides on Accounting.Events. **Fact-checked by Julie Turnbridge, Freelance writer and bookkeeper**, on October 26, 2026. Checked prices, review counts, awards, integrations and dates against each primary source. Last updated September 28, 2026. This guide is general information, not accounting, tax, or financial advice. ## Sources Sources checked by Julie Turnbridge on October 26, 2026: 1. [gov.uk](https://www.gov.uk/late-commercial-payments-interest-debt-recovery) (gov.uk/late-commercial-payments-interest-debt-recovery) 2. [Crestmont Capital, 2026 accounts receivable data](https://www.crestmontcapital.com/blog/accounts-receivable-aging-data) (crestmontcapital.com/blog/accounts-receivable-aging-data) 3. [AccountingTools, separation of duties](https://www.accountingtools.com/articles/what-is-separation-of-duties.html) (accountingtools.com/articles/what-is-separation-of-duties...) 4. [IRS](https://www.irs.gov/taxtopics/tc453) (irs.gov/taxtopics/tc453)