Mike Michalowicz Late Payment Follow Up

A structured 35 minute process for small business owners to review unpaid invoices and collect outstanding balances. This Mike Michalowicz accounts receivable review keeps cash flow steady without destroying client relationships.

5 time blocks, 35 minutes in total.

Time blocks

Pull Accounts Receivable Aging Report: 5 min
Export your current balance report categorized by 30 60 and 90 days
Categorize Delinquent Accounts: 5 min
Group overdue clients by delinquency window and payment history
Send Friendly Courtesy Reminders: 10 min
Email clients 1 to 15 days late assuming a simple oversight
Issue Firm Payment Demands: 10 min
Contact clients 16 to 30 days late to establish a firm payment date
Enforce Service Pauses and Log Notes: 5 min
Halt ongoing work on accounts past 30 days and update records

About this routine

Managing unpaid invoices is one of the most taxing administrative jobs for small business owners. Author Mike Michalowicz advocates establishing a strict bi-monthly rhythm to handle cash flow and accounts receivable on set calendar dates rather than reacting in a panic.

This 35 minute template walks through a clear triage and escalation system. You start by reviewing your aging balance report, separating minor oversights from severe delays. Then you send targeted communications based on invoice age, moving from gentle courtesy nudges to firm phone calls and service pauses.

Executing this process twice a month establishes consistent expectations with clients and protects your operating cash. Using a visual timer for morning routine tasks like collections keeps your focus locked on one account at a time without letting emotional friction stall your momentum.

Why this routine works

Prevents cash flow bottlenecks by establishing fixed collection dates
Removes emotional friction from late payment conversations
Maintains clear client boundaries through tiered escalation steps
Keeps accounting software and client records accurate

FAQ

What is the Mike Michalowicz accounts receivable review?

It is a structured bi-monthly workflow where business owners audit aging invoices, send tiered payment reminders, and enforce service pauses on delinquent accounts.

How often should you review accounts receivable?

Mike Michalowicz recommends conducting financial allocations and accounts receivable reviews twice per month, typically on the 1st and 15th or 10th and 25th.

How do you handle clients who are 30 days overdue?

Send a clear written notice pausing all active work and deliveries until the outstanding invoice is cleared or a structured payment plan is agreed upon.

Sources

Profit First by Mike Michalowicz
Clockwork by Mike Michalowicz