Ask a Cashflow Expert: Amanda’s Guide to Surviving the Emotional Toll of AR

Amanda Morrison doesn't mince words when she describes what debt collection feels like for businesses: "It's like going out on a date and being rejected all the time constantly."

As the owner of iCollect, Morrison has seen firsthand the toll that chasing payments takes on businesses, not just financially, but emotionally. In our recent conversation, she revealed insights that every finance manager needs to hear about the real cost of poor accounts receivable management.

Why Nobody Talks About AR Stress

"Debt collection is typically something that most people don't want to talk about," Morrison explains. But this reluctance to address the issue head-on is precisely what makes it so damaging to businesses.

The emotional burden extends far beyond the business owner. Morrison points out that the staff doing the actual collecting face "the abuse that can come down the phone, the difficult clients, the no answers." It's a constant stream of rejection and confrontation that can devastate team morale.

Yet despite this discomfort, Morrison's advice is refreshingly direct: "Let's have that conversation. Let's talk about your debtors, because you can't just sweep it all under the carpet. You want to get paid."

Your Systems Define Your Success

One of Morrison's most powerful observations cuts straight to the heart of AR management: "Your business is only as successful as your systems."

This isn't just about having accounting software. It's about creating a comprehensive approach that includes:

• Robust terms and conditions that clearly outline debt recovery charges.
• Consistent follow-up processes with specific timelines for emails, texts, and calls.
• Clear escalation procedures for handling difficult situations.
• Predetermined negotiation boundaries (Are you willing to offer payment plans? Discounts?).

Morrison notes that most businesses fail at AR management not because they lack the will to collect, but because they haven't thought through the process. "They don't necessarily have done a lot of training in what they need," she observes. "They've got their accountant managing their accounts, but they don't put too much thought into the fact that they need a system."

Automation That Improves Relationships

Here's where things get interesting. Morrison shared a phenomenon that we at Paidnice see regularly: automated late fees can actually improve client relationships.

"When you have a system that charges late fees automatically, they receive it and then pick up the phone to you," Morrison explains. "Now you can look like the hero for removing the charge for them."

This flips the traditional dynamic. Instead of you making awkward calls asking for money, clients call you—and you get to be the good guy who helps them out. It's a powerful psychological shift that maintains relationships while ensuring you get paid.

Avoiding Debt Collection Entirely

Perhaps most surprisingly, Morrison, a debt collection professional, admits: "I don't want people to need debt collection. It's crap."

Her vision is for businesses to improve their systems so effectively that debt collection becomes unnecessary. This means:

• Taking payments upfront whenever possible.
• Identifying red flags during the customer journey before invoicing.
• Maintaining consistent communication that sets clear expectations.
• Using automation to handle the uncomfortable parts of AR management.

Having Confidence with Uncomfortable Conversations

Morrison's final piece of advice might be the most important: "The main thing is to actually have confidence, and not to shy away from having those conversations."

She acknowledges what we all know, asking for money is uncomfortable. "It's just a crappy conversation that needs to happen," she says with characteristic bluntness. But when you have proper systems in place, these conversations become easier because nothing is a surprise to the client.

Taking Action: Your Next Steps

The insights from our conversation with Amanda Morrison make one thing clear: the emotional and operational costs of poor AR management far exceed what most businesses realize. But the solution isn't to work harder at chasing payments—it's to work smarter with better systems.

Here's how to start:

1. Audit your current AR process - Where are the gaps Morrison mentioned?
2. Implement clear terms and conditions that include payment expectations.
3. Create a documented follow-up schedule that your team can execute consistently.
4. Consider automation tools that can handle the uncomfortable tasks for you.
5. Train your team on handling difficult conversations with confidence.

Remember Morrison's wisdom: "People forget the emotional toll of debtors." By acknowledging this reality and building better systems, you can protect both your cash flow and your team's wellbeing.

Want to see how Paidnice can help you implement Amanda Morrison's best practices? Our automated AR solution handles the "crappy conversations" so you don't have to. Book a demo to see how we can transform your accounts receivable process.