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Working Capital
Building a real-time receivables view for your business
Why the weekly outstanding report fails, what a useful receivables view contains, and how to set up reminders that get you paid without damaging customer relationships.
Ask most MSME owners how much money customers owe them and the answer is a range, followed by “let me ask accounts.” The outstanding report exists — it's just prepared weekly, arrives as an Excel attachment, and is out of date by the time anyone acts on it.
Why the weekly outstanding report fails
- It is a snapshot. Payments received on Tuesday don't show until next week.
- It is organised for accounts, not for the salesperson who needs to call the customer.
- It shows balances, not actions. Nobody is assigned to follow up on each overdue invoice.
What a useful receivables view contains
| Field | Why it matters |
|---|---|
| Bill-wise outstanding | Customers pay invoices, not balances. On-account entries hide the real age. |
| Due date (from credit period) | Ageing should start from the due date, not the invoice date. |
| Age bucket | 0–30, 31–60, 61–90, 90+ days overdue. |
| Salesperson / branch | So the right person follows up. |
| Last reminder & last promise | Stops duplicate calls and tracks commitments. |
Automating reminders without annoying customers
Automated reminders work when they are polite, specific and stop the moment payment arrives. A reasonable default sequence:
- Three days before the due date: a courteous note with the invoice attached.
- On the due date: a reminder with payment details.
- Seven days overdue: a second reminder.
- Fifteen days overdue: an alert to the salesperson to call — not another automated message.
On WhatsApp, automated reminders must be sent through the WhatsApp Business Platform using templates approved by Meta, to customers who have agreed to receive them. Sending bulk messages from a personal number risks the number being blocked.
A note on payment timelines for micro and small enterprises
If your business is registered as a micro or small enterprise (Udyam), the MSMED Act, 2006 requires buyers to pay within the agreed period, which cannot exceed 45 days (or 15 days where there is no written agreement). Section 43B(h) of the Income-tax Act, applicable from assessment year 2024-25, links a buyer's tax deduction for such purchases to timely payment.
What to measure
- Overdue amount by age bucket, week on week.
- Average days to collect (DSO) by customer group.
- Share of invoices paid before first overdue reminder.
- Promises to pay that were kept.
Frequently asked questions
How often should receivables data refresh?
Daily is a big improvement over weekly. Every 15–60 minutes is achievable when Tally is connected through a scheduled connector.
Should salespeople be responsible for collections?
In most B2B MSMEs, yes — they own the relationship. Automation handles routine reminders; salespeople handle conversations.
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