B2B Collections Playbook: DSO, Dunning, Disputes and Cash Discipline
Revenue without collection is a story. Cash collection is the ending investors care about.
Why this can go viral
Detailed analysis
Collections should be managed through invoice ageing, customer owner, due-date calendar, escalation ladder, dispute reason, credit notes and cash forecast impact.
Practical example
Enterprise customer delays ₹35 lakh invoice citing PO mismatch. Finance logs dispute, assigns sales owner, sends corrected documents, updates cash forecast and blocks renewal discount until payment plan is agreed.
Evidence and control checklist
| Area | What to check | Evidence to save |
|---|---|---|
| Definition and owner | Define B2B collections, owner, source system and review frequency. | Metric dictionary, owner matrix and version log. |
| Source data | Books, bank, CRM, payroll, billing, contracts or statutory filings used. | Source extracts and reconciliation sheet. |
| Computation logic | Formula, assumptions, exclusions and period consistency. | Working paper and CFO sign-off. |
| Decision impact | How the output affects pricing, hiring, spend, funding or compliance. | Management note and action tracker. |
| Diligence evidence | Whether an investor/auditor can verify the number independently. | Indexed folder with contracts, reports and approvals. |
Common mistakes
- No owner for overdue invoices.
- Sending generic reminders only.
- Ignoring disputes until quarter-end.
- No DSO dashboard.
- Promising revenue growth without cash conversion.
Official reference framework
Based only on official India Code, Startup India, RBI, Income Tax Department, MCA and ICAI source pages listed below. Check latest law, forms, accounting standards and professional advice before execution.
Official sources used
This article is source-limited to official India Code, Startup India, RBI, Income Tax Department, MCA and ICAI material. Source validation date: 17 June 2026. Verify final positions with latest law, accounting standards, tax rules and professional advice before execution.
- India Code: Companies Act, 2013 Section 128 - Books of account
- India Code: Companies Act, 2013 Section 129 - Financial statement
- India Code: Schedule III to the Companies Act, 2013
FAQs
Because it converts founder intuition into a number that finance, investors and boards can verify.
Using a metric or number without a defined formula, source data and reviewer sign-off.
Monthly for operating metrics; weekly for cash/runway-sensitive items.
Finance/controller should own the evidence and computation; business teams should own the operating input.
No metric without source data, no forecast without assumptions, and no board number without reconciliation.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Primary category
- Startup Finance & Cap Tables
- Official starting point
- www.startupindia.gov.in