Invoice and Collections SOP.
A billing and collection process that protects cash flow, customer relationships, and financial records without making overdue invoices a founder surprise.
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Operating standard
Control without the corporate sludge.
Owner
The finance or operations owner; the account owner supports customer communication and disputes.
Response
Invoice within one working day of the billing trigger. Disputes acknowledged within one working day. Overdue follow-up at the defined intervals without waiting for month end.
Metric
Days sales outstanding and percentage of receivables collected by the contractual due date.
If nobody owns the process, the founder owns every emergency.
Purpose
Issue accurate invoices on time, follow up consistently, resolve disputes, and escalate overdue balances before they damage runway.
When it applies
Use for every customer invoice from the billing trigger through payment, credit, write-off, or formal collection.
Do not start blind.
Trigger to outcome. No meeting required.
- 01
Confirm the billing trigger, amount, currency, tax treatment, purchase-order requirement, and customer details.
- 02
Generate a uniquely numbered invoice that matches the signed terms and includes payment instructions.
- 03
Obtain approval for non-standard amounts, credits, discounts, or changed terms.
- 04
Send the invoice to the billing contact and account owner and record the due date.
- 05
Confirm receipt for material invoices and reconcile incoming payments at least weekly.
- 06
Send reminders before due date and at the defined overdue intervals.
- 07
Route disputes to one owner, pause only the disputed amount when appropriate, and document the resolution.
- 08
Escalate, suspend service, agree a payment plan, or write off only under the approved thresholds.
Authority must be explicit.
Know when to stop.
Escalate disputed or overdue material balances to the account owner and founder before extending more credit or work. Seek qualified advice before legal collection activity.
If it is not recorded, it did not happen.
Make the generic parts real.
How teams break the process.
Sending invoices days after the billing trigger
Continuing new work while old invoices remain unexplained
Making a payment concession without recording who approved it
Related startup SOPs.
Make the process executable.
Download it, assign the real owners, set the thresholds, and test it with someone who did not write it.