You don't notice the leak until the water bill triples. Same with AP/AR.
A $3,200 vendor invoice sits in someone's inbox for three weeks. A $12,000 client payment is 45 days past due because no one followed up. The founder approves every invoice personally — and is on vacation this week. By the time you add it up, you've leaked five figures in a quarter.
Here's what we see in every audit, and how to fix it without adding headcount.
The Three Leaks
1. No approval workflow = no accountability
Symptom: Invoices route to whoever's inbox they land in. Approvals happen via Slack, email, or hallway conversations. No audit trail.
Fix: A lightweight approval matrix.
- Under $500: Auto-approve from pre-approved vendors
- $500–$5,000: One designated approver per category (software, contractors, services)
- Over $5,000: Founder/COO sign-off
Tool it in Bill.com, Ramp, or even a shared Notion database with status fields. The tool matters less than the rule: if it's not in the system, it doesn't get paid.
2. No one owns collections
Symptom: AR aging report exists but no one looks at it. The PM "doesn't want to be annoying." The founder is too busy. 60+ day balances pile up.
Fix: Assign ownership and cadence.
- Day 1–15: Automated reminder from billing system
- Day 16–30: PM sends personal note ("checking in on invoice #X")
- Day 31–45: Founder/ops lead calls
- Day 46+: Escalate to collections language or pause work
Put it on someone's recurring calendar. Monday 9am: review AR aging, send the emails that are due.
3. Vendor terms are invisible
Symptom: You're paying Net 15 terms on a vendor that offers Net 45. Or you missed an early-pay discount. Contracts live in PDFs no one reads.
Fix: A vendor master sheet (Notion, Airtable, Google Sheets — whatever the team actually opens).
- Vendor name | Current terms | Contract end date | Renewal owner | Notes
- Review quarterly. Negotiate at renewal, not at invoice time.
The 30-Minute Weekly Rhythm
Don't build a department. Build a habit.
Monday 9am (15 min): Pull AR aging. Send the emails due this week per the cadence above.
Wednesday (10 min): Approve pending invoices in batch. Flag anything odd.
Friday (5 min): Quick scan — any vendor contracts expiring in 60 days? Add to renewal list.
Quick Win This Week
Export your AP aging from the last 90 days. Filter for:
- Invoices paid late (after due date)
- Invoices paid early (before terms required)
- Duplicate payments
The late ones cost you vendor goodwill and potentially fees. The early ones cost you float. The duplicates cost you cash.
Fix the process that allowed each one. That's your starting point.
Want the full audit? Book a discovery call — 30 minutes, no pitch deck, just a conversation about what's actually going on.