Implementing NetSuite is often seen as a turning point for finance teams. The reporting is stronger, processes are centralized, and visibility improves overnight. Yet many businesses discover something frustrating after go live. Accounts receivable does not automatically get better just because the ERP is better.
In fact, AR can feel more complex post implementation. Workflows become formalized, approval layers increase, and teams assume the system will fix long standing collections issues. It rarely does on its own. Improving AR after implementing NetSuite requires deliberate refinement, not just reliance on system defaults.
Below are practical, specific ways finance teams can tighten AR performance inside and around NetSuite.
Audit Your Current AR Workflow Inside NetSuite
The first step is not automation. It is clarity.
Many companies configure NetSuite quickly to meet go live deadlines. AR workflows are often replicated from legacy systems without much thought. Before improving anything, map out exactly how invoices move through your environment.
Ask questions such as:
- When is the invoice generated relative to service delivery or shipment?
- Are payment terms applied automatically or manually?
- Who owns collections follow up?
- Are reminders scheduled or ad hoc?
- How are disputes logged and tracked?
Look specifically at NetSuite saved searches, dunning templates, customer records, and payment terms configuration. In many cases, small setup inconsistencies create bigger collection problems. For example, inconsistent terms or missing contact emails can delay reminders by weeks.
Improvement starts with cleaning up these structural issues.
Standardise Payment Terms and Customer Data
One common issue after NetSuite implementation is data inconsistency. During migration, customer records often import with varied formats, outdated contact details, or non standard payment terms.
Take the time to:
- Consolidate duplicate customer records
- Validate billing contacts and email addresses
- Standardize payment terms naming conventions
- Remove legacy terms that are no longer used
This may feel administrative, but clean master data directly impacts DSO. If reminder workflows rely on accurate billing contacts and standardized terms, collections become predictable rather than reactive.
Finance teams that skip this step often blame the system when the real issue is data hygiene.
Rebuild the Dunning Process With Intent
NetSuite includes basic dunning functionality, but many teams underutilize it. After implementation, review whether your reminder cadence reflects your commercial reality.
For example:
- Are reminders being sent before due date?
- Is there a clear escalation path at 7, 14, and 30 days overdue?
- Are high value accounts treated differently from low value ones?
Rather than using one generic reminder template, segment customers. Large strategic accounts may need Personalised outreach. Smaller accounts can follow automated email sequences.
The key is defining the logic clearly inside NetSuite and aligning it with your credit policy. Automation only works when the rules are thoughtful.
Align AR Reporting With Operational KPIs
NetSuite provides strong reporting, but many finance teams continue exporting data into spreadsheets for DSO analysis. That usually signals a reporting gap.
Instead of relying on monthly summaries alone, build dashboards that track:
- Average days overdue by customer segment
- Collections effectiveness index
- Dispute volume and ageing
- Promise to pay tracking
Improving AR is not just about chasing invoices. It is about identifying patterns. For instance, if one industry segment consistently pays late, your credit terms may need adjustment.
Treat AR as an operational metric, not just an accounting outcome.
Integrate Dispute Management Into the Workflow
Post implementation, many businesses discover that invoice disputes sit outside NetSuite in emails or ticketing tools. This creates blind spots.
If disputes are not logged properly, reminders continue going out and customer relationships suffer.
Establish a structured way to:
- Flag invoices under dispute
- Pause reminders automatically
- Assign internal owners
- Track resolution time
Even simple custom fields or status tags within NetSuite can bring discipline to this process. When disputes are visible in dashboards, they become manageable rather than reactive crises.
When Native Functionality Is Not Enough
There is a point where standard ERP functionality may not support the level of collections discipline a growing business requires. NetSuite is powerful, but its AR features are primarily transactional.
If your team is managing hundreds or thousands of active debtors, you may need more granular workflow logic, prioritisation, and communication tracking than the ERP natively provides.
This is where some finance teams evaluate an external accounts receivable platform that integrates with NetSuite. The goal is not to replace the ERP, but to extend it with structured collections workflows, segmentation logic, and performance tracking.
The important distinction is that the ERP remains the financial source of truth, while the collections layer focuses on behavioural follow up and process control.
That decision should come after you have optimised what is already available, not before.
Clarify Roles and Ownership
One overlooked issue after implementation is ownership confusion. When processes become system driven, people sometimes assume someone else is responsible.
Define clearly:
- Who monitors overdue reports daily
- Who handles escalation calls
- Who approves credit holds
- Who reviews weekly AR performance
Even the best configured NetSuite environment cannot compensate for unclear accountability. Strong AR performance depends on rhythm and ownership, not just automation.
Review Credit Policy in Light of System Data
Now that you have structured data, use it. After three to six months on NetSuite, review your credit policy against actual payment behaviour.
You may discover:
- Certain customer groups consistently exceed terms
- Payment terms are too generous for new customers
- Credit limits are outdated
System visibility provides evidence. Adjusting credit policy based on real data can materially improve cash flow without changing sales volume.
Continuous Improvement, Not a One Time Fix
AR improvement is rarely a single project. It is an ongoing discipline.
Schedule quarterly reviews of:
- DSO trends
- Ageing distribution
- Reminder effectiveness
- Dispute turnaround times
Small adjustments compound. A three day reduction in average payment time across a large debtor book can release significant working capital.
Conclusion
Improving AR after implementing NetSuite is not about adding more software. It is about tightening data, clarifying workflows, refining escalation logic, and holding the team accountable to measurable outcomes.
For some businesses, extending NetSuite with a dedicated accounts receivable platform may support that discipline. For others, better configuration and ownership inside the ERP will be enough.
What matters most is recognizing that implementation is only the starting line. Strong receivables performance comes from deliberate process design, consistent review, and a willingness to refine how collections are managed over time.
