Can’t Sleep? Your AR & AP Might Be Why

Alright, late night AR/AP talk here…What else would you be doing anyway? Stop scrolling on your phone with no purpose and take in the below…3 minute read or so for you and we can all improve, right?!

For many small business owners, cash management isn’t about complicated spreadsheets — it’s about timing. Knowing exactly when money is coming in and when it’s going out can mean the difference between healthy growth and constant financial stress. Two areas drive this: Accounts Receivable (AR) and Accounts Payable (AP).

When you manage both effectively, you gain control over your cash flow, avoid surprises, and make better business decisions. Let’s break it down real fast.

Why Accounts Receivable (AR) Matters

Your AR represents the money customers owe you for goods or services. The faster you collect, the stronger your cash position. Letting invoices sit unpaid ties up capital you could be using to grow your business. It also costs you money to finance their debt…

This week’s AR action items:

• Send invoices immediately – Don’t wait; bill customers as soon as work is completed. Stop batching.

• Automate reminders – Use your system to send follow-ups at 7, 14, and 30 days. Or use your calendar if it’s a limited amount of invoices.

• Know your aging report – Review who owes what and address slow payers quickly. Do you know how much is coming due by month-end? You should.

Why Accounts Payable (AP) Matters

AP represents the money you owe vendors, suppliers, and partners. Managing it wisely keeps relationships strong and protects your cash. It’s not just about paying bills — it’s about paying them strategically.

This week’s AP action items:

• Review upcoming due dates – Prioritize essential bills and negotiate flexible terms when possible. You can always inquire about better terms.

• Avoid late fees – Set up alerts to ensure payments never slip through the cracks. Stop paying fees!!!

• Match payments to cash inflows – Align outgoing payments with when customer payments arrive. There should be a cadence to your pay cycles.

Cash management isn’t just tracking numbers — it’s controlling the rhythm of money moving in and out of your business. When AR and AP are managed together, you reduce surprises, strengthen relationships, and create space for growth.

If you’re struggling to keep up, start small. Pick one AR action item and one AP action item this week. Consistency builds clarity and clarity builds financial confidence.

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