How can I forecast cash flow better with accounts receivable delays?

[Ronald59]

I’m trying to get a handle on our quarterly cash flow and I keep hitting a wall with our accounts receivable. The lag between invoicing and actually getting paid is creating a real pinch, making it hard to confidently plan for upcoming supplier payments. I’m wondering if others have found a reliable way to forecast this more accurately.

[Elizabeth_G]

I started mapping our accounts receivable aging by week and tied it to the cash forecast; it helped a little, but payment terms vary a lot and some customers pay late no matter what.

[Ella77]

We built a rolling 12 week forecast that uses the actual receipts as a guide, plus a 20 percent buffer for slow payers, and it gave us a better sense of when cash would actually hit.

[WilliamKJ]

Sometimes I suspect the real problem isn't forecasting at all but the timing of invoicing and whether we ship on time.

[Mason16]

Do you really need to chase payments earlier, or is the bigger issue the terms we offer and the mix of customers?