Our accounts receivable aging is blowing out, but neither Finance nor Sales wants to own the Collections and Billing Disputes seat on our Accountability Chart. How do we place and assign accountability for a seat that both departments actively reject?

Question

Tyler Smith · Accepted Answer

When a seat sits in the DMZ between departments, it is usually because both sides see only downside. Sales thinks chasing late payments burns client relationships. Finance thinks billing disputes stem from sloppy sales promises and refuses to do customer service. Meanwhile, cash collection stalls and enterprise value degrades.

You resolve this by following the financial truth of the business: cash collection is a capital protection function. Place the Collections and Billing Disputes seat firmly under Finance. The five roles for this seat should be clear:
- Daily aging report management
- Systematic invoice follow-up and escalation
- Billing dispute triage and resolution
- Cash inflow forecasting
- Credit hold enforcement

Sales does not own collections because their primary wiring is relationship building and closing. However, Sales remains accountable for billing accuracy at contract signing. If an invoice is disputed due to scope mismatch, the Collections seat owner immediately pulls Sales in through an IDS session during the weekly departmental Level 10 Meeting.

Do not let your Controller claim collections is outside their scope. Managing the ledger without collecting the cash is only half the job. If your current accounting staff lacks the capacity or assertiveness to hold clients accountable to net-30 terms, you do not move the seat to Sales. You find someone who has GWC for credit control, whether that is an internal hire or a specialized contractor. Cash flow is the oxygen of an exit-ready company, and it requires single, unapologetic ownership.