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Startup Accounting

Accounts Receivable Collections, Aging, and DSO Management for SaaS

Written by Harry Prabandham

Curated by Rubric Financial

Last updated

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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.

About the author

Harry Prabandham

Founder & CEO

Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.

More articles by Harry

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