Accounts Receivable Collections, Aging, and DSO Management for SaaS
Written by Nirmala Murugesan
Curated by Rubric Financial
Last updated
1 / 5
Why AR Discipline Protects Runway
- Accounts receivable is revenue you have earned and invoiced but not yet collected in cash, and it directly ties up working capital.
- A venture-backed startup can report strong bookings while starving for cash if invoices sit unpaid for months.
- Every dollar stuck in receivables is a dollar not funding payroll or growth, so collections is a core finance function, not an afterthought.
- Tightening collections is often the fastest way to extend runway without cutting costs or raising new capital.
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About the author
Nirmala MurugesanCA, CPAPartner, Accounting
CA and CPA with 20+ years across U.S. GAAP, IFRS, and cross-border entity accounting. Leads accounting and controllership at StartupCFO: clean close, audit-ready books, and multi-entity structures for venture-backed startups.
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