When tax season hits or client work piles up, unpaid invoices can quickly slip through the cracks, especially for busy small-business owners. But managing accounts receivable isn’t just about getting paid; it’s about maintaining cash flow, staying compliant, and building trust with your clients. QuickBooks® Online has tools built right in to help business owners stay ahead of what they’re owed, without spending hours chasing payments.
Why Receivables Matter More Than Ever
Inconsistent cash flow is one of the most common reasons small businesses struggle. According to a 2024 QuickBooks® study, 60% of small businesses experience cash flow issues at least once a year, and late payments are often the culprit. Managing receivables efficiently stabilizes your operations.
How to Track Receivables in QuickBooks® Online
QuickBooks® Online makes it easy to track outstanding invoices, overdue balances, and customer payment history. Here’s how:
- Use the Accounts Receivable Aging Report
- Navigate to:
- Reports > Who owes you > Accounts Receivable Aging Summary
- This report groups outstanding invoices by how long they’ve been overdue (e.g., 1–30 days, 31–60 days, etc.). It’s an essential tool for assessing client risk and prioritizing follow-ups.
- Set Up Automatic Invoice Reminders
- Navigate to:
- Gear Icon > Account and Settings > Sales > Reminders
- QuickBooks® can send polite, automated nudges to customers who haven’t paid by the due date. This feature cuts down on awkward email chains and helps you avoid letting invoices go stale.
- Customize Payment Terms and Due Dates
- For businesses with multiple service tiers or retainers, customize invoice terms for each customer under their individual profile. This ensures expectations are clear upfront and tracked properly.
Pro Tip: Create a Receivables Workflow
Business owners should check their A/R Aging Summary report at least once a week. Pair that with regular reconciliation of bank feeds to match payments received. When managing your books, consider setting alerts for accounts over 60 days due, so you can prompt follow-up or consider collections strategies before year-end.
When Receivables Become a Problem
If overdue balances start piling up, it’s a sign that your business may need tighter invoicing policies or better contract enforcement. You may consider:
- Requiring partial deposits for larger projects
- Incentivizing early payments with small discounts
- Charging late fees (within legal and ethical guidelines)
- Offering recurring billing options through QuickBooks® for subscription-based services
Tracking who owes you (and when) isn’t just good bookkeeping—it’s smart business. With the right QuickBooks® Online tools you can reduce stress, improve cash flow, and avoid awkward conversations about late payments.
If you have questions or need assistance, contact the Experts at Henssler Financial:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166
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