--- type: Template title: Accounts Receivable Action Plan Template (Free Collections Plan) 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 --- 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 [**Accounting.Events editorial team**](/about/)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 below pairs that cadence with an overdue tracker so every at-risk invoice has an owner, a next action date, and a status. Working a consistent plan is what shortens days sales outstanding (DSO), because most late payments come from invoices that nobody followed up. 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](/resources/accounts-receivable-action-plan-template/ar-action-plan-template.xlsx) [Download CSV](/resources/accounts-receivable-action-plan-template/ar-action-plan-template.csv) Getting paid on time depends mostly on whether someone follows up consistently. An action plan turns collections from a scramble into a routine. 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. A consistent cadence keeps invoices moving before they reach the danger zone, which is far cheaper than writing them off later. 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. Days overdue calculates automatically. Work it oldest-and-largest first, because roughly 80% of overdue value usually sits with about 20% of customers. ## What should an AR action plan include? A complete plan has three parts: a **collections cadence** (when and how you follow up), a **tracker** (every overdue invoice with an owner and next action), and clear **escalation rules** (when to add a late fee, place a credit hold, or refer to collections). The template includes all three. ### 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. Most overdue invoices are simply un-chased, so a consistent cadence is the main lever. Track your progress with the [AR turnover ratio](/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. Used consistently, it signals that you take payment dates seriously; used arbitrarily, it can damage the relationship. ## 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](/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 reminder sequence automatically, apply late fees, and surface the accounts that need a human call, which removes the manual effort while keeping the cadence consistent. See our [independent guide to AR software](/reviews/best-accounts-receivable-software/) for tools that do this on Xero and QuickBooks. ## 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 →](/resources/accounts-receivable-aging-report-template/)[Resource ### Accounts receivable turnover ratio Measure whether your action plan is shortening your collection time. Read more →](/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 →](/reviews/best-accounts-receivable-software/) AE [Accounting.Events editorial team](/about/) The Accounting.Events editorial team researches and maintains the software comparisons on this site. Rankings are built from published vendor pricing, verified third-party reviews on the Xero App Store, G2 and Capterra, and primary-source statistics. Every guide carries the date it was last checked. Figures here are drawn from public sources; always confirm with your accountant or the linked source before acting. Last updated September 28, 2026. This guide is general information, not accounting, tax, or financial advice.