The verdict in three sentences
In a 50-person services firm, a 68-day DSO leaves hundreds of thousands of euros sitting with clients, well beyond the 30 to 60-day terms most contracts state. Automated dunning workflows at EUR 6,000 to 15,000 bring DSO down to around 45 days and free roughly EUR 120,000 of cash. Run in 2026, the project can be combined with e-invoicing readiness, which the French mandate makes unavoidable from September 2026 for any firm billing French clients.
Why DSO stays stuck at 68 days
The diagnosis is almost always the same in consulting, engineering or IT services firms: collection depends on an overloaded accountant, it starts after the due date and it ignores the client's profile. An EUR 800 invoice and an EUR 40,000 invoice get the same email, or none.
| Cause of delay | Share of late payments (estimate) | Automated response |
|---|---|---|
| Invoice not received by the right team | 25% | Sent to accounts payable contact + read receipt |
| Missing purchase order or reference | 20% | Pre-send check, mandatory PO field |
| Reminder sent too late | 20% | Friendly reminder 5 days before due date |
| Unreported dispute | 15% | "Dispute" button in the email, alert to project lead |
| Client under cash pressure | 12% | Automatic payment plan offer |
| Plain oversight | 8% | Sequence at D+3, D+10, D+20 |
The key point is the reminder before the due date: a polite nudge at D-5 alone resolves a large share of oversight and internal routing delays on the client side.
The standard workflow and its cost
We build 3 to 4 workflows by client profile (key account, recurring SME, one-off client, at-risk client). Each step is an email, an SMS or an assigned call task, stopping automatically as soon as payment is matched in the bank feed.
| Step | Key account | Recurring SME | At-risk client |
|---|---|---|---|
| D-5 | Email to accounts payable | Friendly email | Email + SMS |
| D+3 | Email with invoice and PO | Reminder email | Call from collections officer |
| D+10 | Call from project lead | Firm email + payment link | Formal notice |
| D+20 | Escalation to client CFO | Call | Service suspension |
| D+30 | Statutory interest and fixed compensation | Formal notice | Handover to collection agency |
Budget depends on existing tooling:
| Setup | Content | 2026 budget excl. tax |
|---|---|---|
| Configuring an off-the-shelf tool | Workflows, email templates, accounting sync | EUR 6,000 to 8,000 + EUR 150 to 400/month |
| Custom module connected to the ERP | Segmented workflows, bank matching, DSO dashboard | EUR 10,000 to 15,000 |
| E-invoicing option | Connection to an accredited platform, lifecycle statuses | EUR 2,000 to 4,000 |
| Time to go live | 4 to 8 weeks |
The September 2026 reform as an accelerator
From 1 September 2026, every VAT-registered business in France must be able to receive e-invoices through an accredited platform, and large and mid-sized companies must issue them, with SMEs following in September 2027. A London firm with French clients will be asked for compliant invoices. The lifecycle statuses sent by the platform (submitted, received, approved, disputed, paid) are a goldmine for collections: a "disputed" status alerts the project lead instead of firing a pointless reminder.
Running both projects together avoids paying twice for the accounting integration.
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Mini case study
Thomas, CFO of a 50-person consulting firm in London, bills EUR 1.9 million a year including VAT, about EUR 5,200 a day. His DSO is 68 days. After 4 months of automated workflows, it falls to 45 days: 23 days saved times EUR 5,200 gives roughly EUR 120,000 of cash freed.
At a 6% overdraft rate, that is EUR 7,200 of interest avoided per year. The accountant also recovers about 6 hours a week of manual chasing, close to 280 hours a year. With an EUR 12,000 project, the cost is covered in under 18 months by finance charges alone, and from month one in available cash.
FAQ
Will automated reminders annoy good clients?
Not if they are segmented: a key account gets a sober email to accounts payable and a human call at D+10. Clients flagged as strategic can be excluded from the firm steps.
Do we need to change accounting software?
No in 80% of cases, the module connects to the existing tool by API or export. Daily bank matching is enough to stop reminders as soon as a payment lands.
Can late payment interest be charged automatically?
Yes, statutory interest and fixed compensation under the UK Late Payment Act (GBP 40 to 100 per invoice depending on amount) can be calculated and added at D+30. Many firms use it mainly as negotiation leverage.
What result can we expect in 3 months?
As a 2026 estimate, a 10 to 15-day drop in DSO in the first quarter, then stabilisation between 40 and 50 days depending on the weight of key accounts.
Let's scope your project. We analyse your aged debtors, build your dunning workflows and connect them to your accounting and e-invoicing platform, for EUR 6,000 to 15,000 in 4 to 8 weeks. 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.
