Module 3 of 12 · Project Finance

AR/Collections Responsibility & Escalation Guide

Grace Design Studios’ process for following up on outstanding client invoices, from the first monthly statement through Executive Leadership review at 120 days.

Reference Guide · companion to the Module 3 Finance Field Guide

Module Home  ›  AR/Collections Guide

Firm guide, reproduced in full below, with a visual roadmap of the escalation timeline. The source PDF is available from Module 3’s Additional Materials.

1

Why this exists

Purpose

Establish a consistent, efficient process for following up on outstanding client invoices. Engage Accounting, Project Management, and Leadership at the appropriate time.

2

One invoice, six roles

Ownership & Responsibility

The Project Manager (PM) holds ultimate responsibility for AR collection on their projects. This responsibility does not change based on who makes the actual call or sends the actual email. The PM must remain actively aware of overdue invoice status.

RoleResponsibility
AccountingSends monthly Client Statements. Contacts the client’s Accounts Payable department beginning at 31 days outstanding. Continues follow-up until payment is received, AP becomes non-responsive, or a project-related issue is identified.
Project AccountantResolves PO/Invoice issues identified by Accounting. Assists PM with collection.
Project ManagerBecomes involved when Accounting identifies a project issue, dispute, or lack of response. Reviews the BST aging report and collection notes before contacting the client.
Client Relationship HolderExecutes client-facing follow-up when escalation is required beyond the Project Accountant’s process. Could be the Project Manager, Studio Leader, or other.
Practice LeaderEngages formally once an invoice passes 90 days outstanding.
Executive LeadershipReviews invoices exceeding 120 days and determines if additional escalation or legal action is appropriate.
3

Day 1 to day 120 and beyond

The escalation roadmap

The stages below follow the invoice from issuance through Executive Leadership review, using the day ranges set out in the Escalation Summary. Each stage lists the escalation flag, the required action, and the responsible party.

Day 1 · Invoice Issued
No flag yetMonthly Client Statement sent. Invoice tracked in BST. No escalation required.
Day 1 to 30
Accountinge.g. Invoice goes out with the normal monthly statement mailing. No direct follow-up call yet.
First Follow-UpFriendly check-in. AP follow-up. Document in BST.
Day 31 to 45
Accountinge.g. Accounting emails the client’s AP contact confirming receipt and asking for an expected payment date.
Escalation FlagProvide notes to PM/PA if issues arise beyond AP. Phone check-in by the PM if required.
Day 46 to 90
Project Accountant
Project Managere.g. PA logs the collection notes for the PM. The PM calls the client contact directly once AP stops responding.
Practice Leader FlagPractice Leader becomes involved and assists with client relationships and payment resolution.
Day 91 to 120
Project Accountant
Project Manager
Practice Leadere.g. Practice Leader joins the PM on a call with the client’s leadership to resolve the delay.
Executive Leadership FlagDetermine final escalation strategy.
Day 120+
Executive Leadershipe.g. Executive Leadership decides whether to pause work, involve legal, or negotiate terms.

Flag, required action, day ranges, and responsible party for each stage are reproduced from the Guide. The Day 1 to 30 period and the example actions are illustrative and are not part of the source document.

4

The source table

Escalation summary

Reproduced exactly as it appears in the Guide.

DayFlagRequired ActionResponsible Party
31 to 45First Follow-UpFriendly check-in. AP follow-up. Document in BST.Accounting
46 to 90Escalation FlagProvide notes to PM/PA if issues arise beyond AP. Phone check-in by the PM if required.Project Accountant
Project Manager
91 to 120Practice Leader FlagPractice Leader becomes involved and assists with client relationships and payment resolution.Project Accountant
Project Manager
Practice Leader
120+Executive Leadership FlagDetermine final escalation strategy.Executive Leadership
5

See also

Related resources

Where this connects

Module 3 Finance Field Guide · The collections craft →The day-by-day script for the 25th/7th/day-45/day-60/day-90 rhythm this Guide formalizes. ← Module 3 · Backlog to CashReturn to the module home for the videos, overview, and quick reference.

Source: AR/Collections Responsibility & Escalation Guide, Grace Design Studios. Reproduced in full above. The original PDF is available from Module 3’s Additional Materials.

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