Accounts receivable cleanup

Accounts receivable cleanup that shows what is really owed.

When receivables have been left for a while, the first job is not more chasing. It is working out what is genuinely unpaid. Steinfin reviews your ledger, finds the old balances, unmatched payments, forgotten promises and open queries, and gives every account a clear status and a next step.

Example
  • Invoice 1041£8,400$10,500€9,850C$14,300
    Overdue 143 days, last action unknown Confirmed outstandingNext: Call today
  • Invoice 1052£5,000$6,250€5,850C$8,500
    Customer says paid Paid, payment matchedNext: Closed
  • Invoice 1070£3,200$4,000€3,750C$5,450
    Query open, owner unknown Query: PO with your teamNext: Chase Thursday
  • Invoice 1081£6,700$8,400€7,850C$11,400
    Promise made, date missing Promise: Friday 25thNext: Check Friday
  • Invoice 1088£2,150$2,700€2,500C$3,650
    Two different statuses Duplicate note removedNext: Reminder Monday
5 invoices, no clear picture 5 invoices, each with a status and a next step
The simple version

What does AR cleanup mean?

AR cleanup is a review of your outstanding receivables to clear up the confusion: what is genuinely unpaid, what has already been settled, what is blocked, and what needs doing next.

The point is not to make the report look tidy. It is to make your receivables picture something you can use again.

It is usually a focused piece of work on an existing ledger. Once it is clear, the accounts can move into ongoing accounts receivable management so it stays that way.

Five questions a cleanup answers
  1. 1What is actually still owed?
  2. 2What has already been paid?
  3. 3What is disputed?
  4. 4What is waiting on someone?
  5. 5What needs action next?
Signs it is needed

Signs your accounts receivable needs cleanup.

The diagnosis

Every unclear invoice is unclear for a reason.

A messy ledger is usually lots of small, different problems. Choose an invoice to see why it is unclear, what we check and where it ends up.

Why it is unclear

No follow-up has been recorded for months, so nobody knows whether the customer was ever contacted or what they said.

What we check

Payment history, emails and notes, and the customer contact on file.

Classified asConfirmed outstanding
Next action

Follow up today, with the history attached.

Why it is unclear

A payment arrived weeks ago but was never matched to the invoice, so it still looks overdue.

What we check

Payments received, references and the customer's remittance advice.

Classified asPaid, needs matching
Next action

Match the payment and close the invoice.

How cash application works
Why it is unclear

The customer asked for a PO number. The request sat in one inbox and nobody picked it up.

What we check

The customer's emails and who, if anyone, replied.

Classified asQuery open
Next action

Route it to your team for the PO, then follow it through.

How invoice queries are handled
Why it is unclear

The customer promised to pay, but the promise is buried in an email thread and was never recorded.

What we check

The thread, whether any payment arrived, and the agreed date.

Classified asPromise outstanding
Next action

Confirm the date with the customer and track it.

What we review

Four places a ledger usually goes wrong.

01

Invoices and balances

Open invoicesAged debtCustomer balancesUnusual balances
02

Payments

Payments receivedUnapplied cashPartial payments
03

Conversations

Promises to payOpen queriesDisputesContact history
04

Housekeeping

Contact detailsInvoice statusMissing next actionsAccounts gone quiet
How AR cleanup works

Classify first. Then act.

Before anyone picks up the phone, every open item is sorted into what it really is. Each group then gets the right next step, instead of one generic reminder for everything.

Cleanup board42 invoices sortedExample
Confirmed outstanding14
Invoice 1041£8,400$10,500€9,850C$14,300
Invoice 1093£4,900$6,150€5,750C$8,350
Paid, needs matching6
Invoice 1052£5,000$6,250€5,850C$8,500
Query open5
Invoice 1070£3,200$4,000€3,750C$5,450
Your decision3
Invoice 0987£4,600$5,750€5,400C$7,800
Promise outstanding4
Invoice 1081£6,700$8,400€7,850C$11,400
No recent action5
Invoice 1012£1,850$2,300€2,150C$3,150
Needs investigation2
Invoice 0954£2,300$2,900€2,700C$3,900
Resolved3
Invoice 1088£2,150$2,700€2,500C$3,650
Fact from noise

One number on a report. Six different stories underneath.

An old ledger is usually a mix of real unpaid invoices, payments that were never matched, disputes, credits nobody processed and records that simply went stale. The first job is working out which is which.

What the report says
£184,000$230,050€215,250C$312,800 outstanding
What it actually is
  • Confirmed outstanding£112,400$140,500€131,500C$191,100
  • Paid, needs matching£21,600$27,000€25,250C$36,700
  • Query or dispute£18,900$23,650€22,100C$32,150
  • Promised£13,200$16,500€15,450C$22,450
  • Needs your decision£9,800$12,250€11,450C$16,650
  • Still investigating£8,100$10,150€9,500C$13,750

Illustrative figures. The value is in the clarity, not the numbers.

Old invoices

An invoice that is six months old deserves questions before chasing.

We do not assume an old balance is simply unpaid. We check its history first.

  • Is it genuinely still unpaid?
  • Has the customer already paid?
  • Was there a dispute?
  • Was a credit note expected?
  • Was the payment matched to something else?
  • Is the invoice still valid?
  • Who last spoke to the customer?
  • What should happen next?

Whether an old invoice is still valid, or should be written off, is your decision. We give you the facts to make it.

Invoice 0987Marlow Interiors
£4,600$5,750€5,400C$7,800
  1. 180 days oldNo recorded contact since spring
  2. Payment history checkedNo matching payment found
  3. Customer history checkedEmail in March about damaged items
  4. Query foundCustomer expected a partial credit
  5. Your input neededWas a credit agreed?
  6. Status confirmedMoves to the right next step
Example. Fictional customer and figures.
Payments and records

Sometimes the ledger looks worse than it is.

Money that arrived but was never matched makes receivables look bigger than they really are. We find those payments and sort out where they belong. For the ongoing version of this work, see cash application.

Payment foundMatched to the invoice
Partial paymentRemaining balance confirmed
Unknown receiptPayer and remittance investigated
No matchFlagged for your review

Same account, three answers.

Sometimes the problem is not the customer. It is the records around them: duplicate notes, different statuses in different places, outdated contacts, missing references and no clear owner. We bring the follow-up records for each account into one clear view.

We tidy the receivables follow-up records. Any change to your accounting records is made by your team, or by us only with your approval.

Finance"Chased last week"
Sales"Paying end of month"
Spreadsheet"Disputed?"
Brightwell Ltd
StatusPromise, 30th
OwnerSteinfin
Next actionCheck payment on the 30th
Promises that went stale

A promise nobody followed up.

The customer promised to pay two weeks ago. Nobody checked. The promise is still sitting in an email. Cleanup finds it and turns it into action.

Oakline Ltd, 14 days ago

"We will pay invoice 4055 by the 10th."

Promise dateThe 10th
Payment arrived?No
Next actionFollow up today
Open queries and disputes

Some old invoices are waiting on something.

They are not simply overdue. They are blocked. Cleanup finds the blocker and routes it to whoever can clear it. After that, invoice dispute management keeps it moving.

A PO numberYour team
ApprovalCustomer
A missing documentYour team
A pricing answerYou decide
Delivery confirmationCustomer
A commercial decisionYou decide
What you get

The output of an AR cleanup.

A clear, working picture of your receivables, and a plan for what happens next. Not a formal audit report, but something far more useful day to day.

  • Confirmed open balances
  • Invoices to follow up now
  • Payments to match
  • Queries and disputes to clear
  • Promises to chase
  • Decisions that need you
  • Accounts ready for ongoing management
  • A prioritised next-action plan
Cleanup summaryExample
Follow up now14
Payments to match6
Queries to clear5
Promises to chase4
Decisions for you3
No recent action, to restart5
Still investigating2
Resolved and closed3
Every one of the 42 invoices now has a status and a next step.
Who decides

Cleanup is not writing off debt. Your team still makes the decisions.

Cleanup tells you what each balance really is. What to do about it stays with you and your own accounting process.

Steinfin can
InvestigateOrganiseClassifyTrackSurface issuesFollow upRecommend next steps
You decide
Write-offsCommercial adjustmentsCredit notesSettlementsLegal escalationSensitive exceptions
When it helps

Cleanup usually follows a change.

Ledgers rarely get messy overnight. It tends to happen when something shifts and follow-up slips for a while.

Rapid growthChanges in the finance teamSomeone who ran AR has leftA long spell without credit controlA move to new accounting softwareA backlog after a busy period
Cleanup before outsourcing
  1. 1Understand the existing ledger
  2. 2Resolve the mess
  3. 3Set clear statuses and next actions
  4. 4Move into ongoing AR management

Thinking about handing AR over? See outsourcing accounts receivable.

After cleanup

Every cleaned account goes somewhere useful.

Cleanup is the start, not the end. Each account moves into the ongoing process that suits it.

Your systems

We work with what you already have.

We work from the receivables records in your accounting system, plus any supporting records you share, such as remittances and correspondence. Access is scoped to receivables work and you can revoke it at any time.

Who it is for

A good fit if you have...

  • Old aged receivables
  • A large AR backlog
  • An aged debt report you do not trust
  • Unapplied cash
  • Unresolved invoice queries
  • Missing follow-up history
  • Balances that are hard to explain
  • Recent finance team changes
  • Inconsistent credit control
  • Plans to outsource AR next

Common in construction, where old applications, stale queries and deductions build up, and in wholesale and distribution, where high volume leaves unmatched payments and undecided deductions. See all industries.

Getting started

How it starts.

Every ledger is different, so the amount of work varies. The order does not.

  1. Review the picture

    Where the ledger stands today.

  2. Spot what is unclear

    Stale, unexplained or blocked items.

  3. Classify

    Every item into its real group.

  4. Confirm with you

    What needs your input or decision.

  5. Work the backlog

    Matching, routing and follow-up.

  6. Set next actions

    Every account gets a status and a step.

  7. Move to ongoing

    Where you want us to carry on.

See the full Steinfin process.

Pricing

Scoped to your ledger, agreed up front.

Aged debt cleanup is part of Steinfin's Scale plan. Because every backlog is different, we scope and quote it once we have seen your ledger, and the price is agreed before we start.

See Steinfin pricing
Scale
Quoted to your ledger
No surprises. Agreed before any work starts.
Start here

Not sure whether your ledger needs cleanup?

Start with the free AR health check. We look at your overdue invoices, show where cash is being held up and point out where records, payments, queries or follow-up need attention, plus a few practical things you can act on. No cost, no obligation.

Get a free AR health check
Questions

AR cleanup, answered.

What is accounts receivable cleanup?

It is a review of an existing receivables ledger that has become unclear or out of date. We work out what is genuinely still owed, what has already been paid, what is disputed, what is waiting on someone and what needs action, then organise it so every account has a clear status and a next step.

How do I know if my AR ledger needs cleanup?

Common signs are old invoices that stay open for months, paid invoices still showing as outstanding, balances nobody can explain, promises and queries buried in email, and an aged debt report nobody fully trusts. If different people give different answers about the same account, it is usually time.

Can Steinfin clean up old overdue invoices?

Yes. We look at each one: whether it has been paid, whether there was a query or an expected credit, who last spoke to the customer and what happens next. Genuinely unpaid invoices go back into follow-up. Anything that needs a decision comes to you.

What happens if an invoice has already been paid?

We find the payment, confirm it belongs to that invoice and flag it for matching, so the invoice stops showing as overdue and the customer is not chased by mistake.

Can you identify unapplied cash?

Yes. Payments that have arrived but have not been matched to invoices are one of the most common reasons a ledger looks worse than it is. We identify them and work out where they belong, or flag them for review if that is not clear.

What happens to disputed invoices?

We identify what the dispute is about and who needs to act, whether that is the customer, your team or you, and record it with a next action. From there it can move into our invoice dispute management process.

Can Steinfin write off old balances?

No. Write-offs are always your decision, made through your own accounting process. We can show you which balances look unlikely to be paid and why, so you can decide with the facts in front of you.

Can you issue credit notes?

No. If a credit note or adjustment looks necessary, we flag it with the reasons. Your team decides and issues it, and we then track the account until it reflects the agreed outcome.

How do you handle partial payments?

We confirm what was paid, match it to the right invoice and confirm the balance still owed, so the invoice is neither wrongly closed nor shown as fully unpaid.

Can you clean up our AR before taking over ongoing management?

Yes, and it is often the best way to start. We get the existing ledger into a clear state first, then move the cleaned accounts into ongoing accounts receivable management so it stays that way.

How long does AR cleanup take?

It depends on the size and condition of the ledger: how many invoices, how old they are and how much history needs checking. We give you a realistic view once we have looked at it, rather than guessing.

How much does AR cleanup cost?

Aged debt cleanup is part of Steinfin's Scale plan. Because every backlog is different, we scope and quote it once we understand your ledger, and the price is agreed before we start.

Can you work with Xero, QuickBooks and Sage?

Yes. We work from the receivables records in your accounting system, plus any supporting records you share such as remittances and correspondence. Changes to your accounting records are made by your team, or by us only with your approval.

Find out what is really owed.

Start with a free AR health check. We will show you where your ledger is unclear, and what it would take to get it back under control.

Get a free AR health check