The verdict in three sentences
A finance director chasing customers manually lets overdue invoices slip through for lack of rigorous follow-up, inflating DSO and locking up cash. Automating dunning and collections costs 8,000 to 20,000 EUR in 2026 in Dublin, delivered in 5 to 7 weeks. Expected result: a DSO reduction of 12 to 18 days, with a direct ROI on available cash.
What the receivables automation budget covers
Collections automation orchestrates multichannel dunning scenarios triggered by the age and amount of each invoice, with no manual intervention.
| Item | 2026 cost (EUR) | Lead time |
|---|---|---|
| Email/SMS dunning scenarios | 3,000 | 2 weeks |
| Invoicing tool connection | 4,000 | 2 weeks |
| Escalation rules (age, amount) | 2,500 | 1 week |
| Collections / DSO tracking board | 3,000 | 1 week |
| Online payment portal | 2,500 | 1 week |
| Training + tone configuration | 1,500 | 1 week |
| Full project total | 8,000 - 20,000 | 5-7 weeks |
An SME with a single invoicing tool and 3 reminder levels stays under 12,000 EUR. Multi-entity, multi-currency and legal escalation push the budget toward 20,000 EUR.
Impact on DSO and cash flow
The gain is measured in DSO days, i.e. immediately available cash. Here is the 2026 order of magnitude for an SME invoicing 2.4 M EUR a year.
| Metric | Before | After | Change |
|---|---|---|---|
| Average DSO | 62 days | 47 days | -15 days |
| Invoices overdue > 30 d | 22 % | 9 % | -13 pts |
| Dunning time / week | 8 h | 1 h | -7 h |
| Average locked-in receivables | 408,000 EUR | 309,000 EUR | -99,000 EUR |
| 90-day collection rate | 88 % | 96 % | +8 pts |
Revenue of 2.4 M EUR is about 6,575 EUR of invoicing per day. Cutting DSO by 15 days therefore frees around 99,000 EUR of cash permanently: as much overdraft avoided or working-capital funding saved.
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Mini case study
Aoife, finance director of a 30-person trading SME in Dublin, invoices 2.4 M EUR/year with a 62-day DSO. Her authorised overdraft costs 6.5 % annual interest. She invests 14,000 EUR in dunning automation connected to her invoicing tool. DSO falls to 47 days, freeing 99,000 EUR of cash. The interest saving on that sum alone (99,000 x 6.5 %) is 6,435 EUR/year; adding the 7 h/week freed (valued at 35 EUR/h = 12,740 EUR/year), the project pays back in around 8.7 months.
FAQ
Won't automatic reminders antagonise customers? No if scenarios are well set: courteous tone, gradual escalation, exclusion of known disputes. Response rates often improve because reminders become regular and impersonal, hence less confrontational.
Can we keep our invoicing software? Yes, the connection costs around 4,000 EUR for API-enabled tools (Sage, Xero, Zoho, QuickBooks). Automation reads invoices and their statuses in real time.
What DSO gain can we expect? The 2026 order of magnitude is 12 to 18 days for an SME that chased manually and irregularly. The gain is smaller if your dunning was already rigorous.
Is online payment essential? No, but a payment link inside the reminder clearly speeds up collection: it is the project's most profitable option for around 2,500 EUR.
How much is maintenance? Allow 60 to 150 EUR/month for connection monitoring and scenario tuning based on observed results.
Let's scope your project. Send us your annual revenue, current DSO and invoicing tool, and we will cost the automation and estimate the cash freed. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
