What is an aging of accounts report and what should I do with it?
Before you order products, hire a new employee, or make any financial decision, you must understand how much money is flowing into your business. Keeping up with your accounts receivables is critical to that process. An Aging of Accounts Report helps by compiling all of the must-know details in a concise format. It provides information that helps you follow up with customers that need a little nudge.
Unpaid invoices are a business asset. They represent loyal customers and money your company has already earned. Unfortunately, when you’re running a business, you don’t have time to keep track of every unpaid bill. An Aging of Accounts Report gently reminds you that it’s time to reinvoice, make a phone call, or contact a collection agency.
Aging of Accounts Reports
There’s a critical concept behind the Aging of Accounts report. It reminds you of your customers’ billing and payment histories. Also, it tells you which customers owe you and how much they owe. It organizes your customers’ unpaid invoices into columns that clearly designate them as outstanding for 30, 60, 90 days or more.
Your aging report helps you make collection decisions and it’s important for these additional reasons.
- It’s a record of your sales and demonstrates your company’s financial health.
- It reminds you exactly how much of your business cash is tied up in unpaid invoices.
- Most importantly, it’s a reliable resource that helps you decide whether or not to grant a customer additional credit.
No more old school spreadsheets
Unless you’re a bookkeeper or an accountant, you probably don’t like spreadsheets. Fortunately, you don’t have to set up a spreadsheet to capture important accounts receivable data. We’ll do that for you.
Our bookkeeping professionals merge your receivables into your own private Invoice Management System. We tailor your system to store and track your accounts receivable data. It generates invoices and syncs them with incoming payments. We perform your tasks digitally so you can get rid of your paper backlog.
At Goode Bookkeeping and Consulting, we understand that your client invoicing data is important. That’s why we store it in a secure cloud environment where you can have 24/7 access. We take care of the day-to-day details and when you need accounts receivables data, we will generate an aging report on demand.
If you’d like to learn more about Aging of Accounts Reports or Invoice Management Systems, call us at 860-659-6543 or complete our consultation form.