An accounts receivable ledger or aged debtor report shows how much money is owing from customers. Businesses can offer credit terms to clients, but it is vital to ensure that the debts are settled on time.
When offering credit terms to a customer, it is important to get these agreed in advance of any work or products shipped. Most businesses include their terms with a quotation or get a credit application form completed by the customer.
The account is part of the current assets in the balance sheet. A current asset is a debt that can be turned into cash during one year or less. The report is useful for management accounting for preparing cash forecasts and also checking on bad debts.
What is an ageing report?
An ageing report shows all the customers that owe money, split between current, 0-30 days, 31-60 days, 61-90 and overdue. It makes it easy to spot accounts that delay making payments. If you use an accounting software package to issue your invoices, then the reports are available through the software.
If you use a manual system, we have created an Excel template to help you keep track of money owing from customers.
Most lenders require aged debtors report if you are applying for a loan. It allows the lender to see how much money the business has outstanding in debt, and if the business struggles to collect money from customers.
Accounts Receivable Ledger – Credit control
If the business offers credit to customers, then implementing procedures for credit control is crucial for cash flow. Read our guide on how to request outstanding money. Also available is a free template to issue a debt collection letter of court proceedings.
Credit control is a crucial part of a business, without following up on debts you could end up with a cash flow problem.
Accounts Receivable Excel Template
Our simple to use Accounts Receivable Excel template allows you to list all the outstanding invoices, invoice date, number and credit terms. The spreadsheet will calculate how many days overdue each invoice is and show the total for each month.
To assist the credit control, there is a column to add comments, which can include telephone conversations and payment requests.
The data can then sort by amount, customer or date.
Return from Accounts Receivable Ledger to balance sheet page.