Accounts Receivable Collections, Aging, and DSO Management for SaaS
Written by Harry Prabandham
Curated by Rubric Financial
Last updated
1 / 5
Why AR Discipline Protects Runway
- Accounts receivable is revenue you have earned and invoiced but not yet collected in cash, and it directly ties up working capital.
- A venture-backed startup can report strong bookings while starving for cash if invoices sit unpaid for months.
- Every dollar stuck in receivables is a dollar not funding payroll or growth, so collections is a core finance function, not an afterthought.
- Tightening collections is often the fastest way to extend runway without cutting costs or raising new capital.
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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