Maintaining a steady cash flow is an integral part of operating a successful business. You must continually monitor your accounts receivable balances and take appropriate actions when customers are not remitting timely payments.
Accounts Receivable is money owed to a business for goods or services that were provided. QuickBooks Online (QBO) provides valuable reporting tools that make it easy for you to see which customers owe you money and how many days old the receivable balance is.
To generate an Accounts Receivable Aging Report in QBO:
- Click on the reports tab in the toolbar on the left-hand side of your QBO screen
- Under the dropdown “Who owes you,” you can find two helpful reports:
- Accounts Receivable Aging Summary
- Accounts Receivable Aging Detail
The Accounts Receivable Aging Summary report allows you to see a simplified breakdown of money yet to be received by the number of days outstanding: Current, 1-30 days, 31-60 days, 61-90 days and 91 and over. The Accounts Receivable Aging Detail report provides a similar breakdown but gives extra information such as the invoice and due dates.
With these reports, it is quick and easy to see which customers owe you money. You might try implementing a best practice of sending an email to the customer once a balance is 30 days late and then follow-up with a phone call after 60 days.
Monitoring your Accounts Receivable can help you regulate and generate a healthy cash flow.
For more information, contact Katherine Little, Accounting Analyst, at 716.438.2190 or klittle@tsacpa.com.
