I once worked with a construction supplies company that had $400,000 sitting in unpaid invoices. They were profitable on paper, but couldn’t pay their own suppliers. Classic cash flow trap. They didn’t need more sales; they needed faster collections.
Where the money was hiding
Their customers were paying late, but no one tracked it consistently. The accounting team only sent reminders after 60 days. Too late. ERPNext Consulting re-engineered their entire receivables process. We set up automated aging reports that the sales team saw every Monday morning.
- Invoices over 30 days got a friendly email reminder
- Invoices over 45 days triggered a call from the sales rep
- Invoices over 60 days went to the owner with a payment plan option
The result was dramatic and fast
Within 60 days, their average collection period dropped from 52 days to 38. That freed up over $100,000 in working capital. The owner said it felt like getting a raise without working extra. The key was making the data visible to the people who talk to customers, not just the finance team.
If your bank balance doesn’t match your sales volume, look at your receivables. A smart engagement with ERPNext Consulting can turn that around quickly.