In brief: Accountants have more influence over how fast clients get paid than any reminder software ever will. The levers sit in work the firm already does: engagement terms, invoicing discipline, debtor day reporting, credit policy and collection method. Pulled together, they form a repeatable advisory service that shows up directly in the client's bank balance.

This is the playbook, ordered from easiest to most transformative.

Why this is advisory work, not admin

Around £26 billion sits in late payments to UK businesses at any time, and affected businesses lose an average of 86 hours a year chasing it. No client line item destroys more value more quietly. A firm that reduces a client's debtor days from 55 to 35 has released weeks of turnover back into working capital, an outcome most clients value above any tax saving, because they feel it monthly.

It is also measurable, which makes it the rare advisory service with a scoreboard.

Lever 1: put debtor days on every management pack

What gets reported gets managed. Add three numbers to every management accounts conversation: debtor days, value overdue, and the oldest unpaid invoice. Benchmark against sector norms and track the trend. The moment a client sees 52 days against a sector norm nearer 30, the conversation about fixing it starts itself. The costing framework is in the true cost of late payments.

Lever 2: fix the invoice before it leaves

A large share of late payment is unprocessable invoicing: wrong entity, missing purchase order, no calendar due date, unclear description. Build clients a one page billing checklist per major customer and make same day invoicing the standard. The Small Business Commissioner's guidance on getting invoices right is a ready made client handout.

Lever 3: tighten terms and credit policy

  • Terms agreed before work, stated as calendar dates. The decoder is in invoice payment terms explained.
  • Credit checks and limits for new customers, enforced, not decorative.
  • Statutory interest referenced in terms and on invoices. Clients rarely know they can charge 8% above base plus compensation; the rules are in late payment interest UK.
  • Deposits or staged billing for project work, so the client is never financing the whole job.

Lever 4: systemise the chase that remains

Automated reminder sequences from the client's accounting platform, escalating on a schedule and stopping instantly on payment. Give clients the template sequence rather than letting them improvise tone at 9pm. Ready made wording is in how to politely chase an unpaid invoice.

Lever 5: change the collection method

The four levers above improve the odds that a customer pays. The fifth removes the dependency: repeat invoices collected by Direct Debit, with the mandate agreed at onboarding, the invoice supplying each amount, and payment landing on the due date.

This is the lever with the largest effect on debtor days, because it converts the majority of routine invoices from "prompted" to "scheduled". It also keeps the client's books clean, since collections reconcile back to invoices automatically. The client fit criteria, the customer conversation and the firm's role are covered in depth in Direct Debit for accountants' clients.

Packaging it as a service

  1. Diagnose: a one hour debtor review using data the firm already holds. Output: debtor days, ageing profile, the five worst payers, estimated cash released by hitting sector norm.
  2. Prescribe: a one page plan across the five levers, sequenced for that client.
  3. Implement: terms updates, reminder sequences, and Direct Debit onboarding for the repeat customer base.
  4. Report: debtor days on every management pack, trend arrows doing the marketing for the next client.

Firms typically start with two or three clients where the pain is loudest, then roll the playbook across the base once the first results land.

Common mistakes firms make

  • Leading with software instead of the number. Clients buy debtor days falling, not tools.
  • Treating every client the same. A disputes heavy client needs contract work before collection work.
  • Building reminder sequences and stopping there. Reminders still leave the payment on the customer's to do list.
  • Not measuring. Without a before and after, the firm delivered effort rather than an outcome.

Where NRTH fits

NRTH partners with UK accountancy firms through the NRTH Ambassador Program, providing the collection layer for lever five: mandate journeys, collections scheduled against Xero, QuickBooks and Sage invoice due dates, failure reporting and automatic reconciliation. The firm keeps the advisory relationship and the scoreboard.

Frequently asked questions

What is a good debtor days figure for a small business?

It varies by sector and terms, but a useful working target is debtor days at or below the client's standard payment term. A client on 30 day terms sitting at 50 days has a 20 day collection gap worth pricing.

How quickly do these changes show results?

Invoice hygiene and reminder sequences show within one billing cycle. Collection method changes show within two to three cycles as mandates come online. Debtor days trend down over a quarter.

Should firms charge for this as a service?

Many do, either as a fixed project or within an advisory retainer, because the outcome is measurable. Others use it to deepen relationships and win referrals. Both work; giving it away accidentally does not.

What about clients who resist change?

Start with the report, not the recommendation. A client who sees their own number against benchmark usually asks for the fix, which is a better dynamic than being sold one.

The firm that fixes a client's cash flow is not a cost line. It is infrastructure.

Advising businesses on getting paid? Talk to NRTH about the Ambassador Program.

Sources and further reading

Last reviewed: 21 July 2026. This is general information for advisers, not legal or financial advice.