Go to any accountancy software, and you can usually hunt down an aged debtor report for your business or your clients business. But why are they useful?
First up, let’s get the definition straight.
Put simply, an aged debtor report is a list of all unpaid invoices due to your business. This shows you the overall amount of money you’re owed at any one time, and is grouped by customer.
The aged debtors report usually divides out unpaid invoices that are due to be paid to you within 30 days, in 30 to 60 days, in 60 to 90 days and in more than 90 days.
An aged debtor report can help you track your clients debts and allows you to prioritise debt that needs chasing. It can help you develop your advisory services, as it can provide insight for your clients on who they should be giving credit to. An aged debtor report can also be useful for examining payment terms - your client may want to shorten their payment period terms if they are facing frequent overdue invoices from one customer.
As an accountant, it’s important to keep on top of your clients' aged debt reports. Perhaps you could provide one for each meeting you have with a client as a means of monitoring their cashflow.
To make things easier for you, we’ve listed where you can find the Accountancy software generated aged debtor reports on the four main platforms.
Head to Accounting > Reports > Aged Debtors.
From here you can see a breakdown of each invoice that is currently outstanding over specified time periods.
Head to Accounting > Reports > Sales > Aged Receivables Detail (New).
From here you can select a date range, and click Report settings to customise the report. Update it to see the most recent report.
Head to Reporting > More > Aged Debtors.
This report shows all customers with an outstanding balance up to the current date. To view the report for a particular customer, enter their company name or reference in the search box.
You can sort by either name or outstanding amount, and you can also use analysis types to filter the report.
Head to the Main QuickBooks menu > Reports > Customers & Receivables list > A/R Aging Detail.
This report will show you all outstanding invoices and sort them by due date. Depending on the payment terms you have set for your customers, you will see those that are due in 0-30 days, 30-60 days, 60-90 days and over 90 days past due.
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