Track Customer Dues and Payments

In an ideal situation, we could see that products are traded, services are rendered, and payments are ideally made in time. But things do not always work as expected. Payments are delayed, forgotten, or even protested. It is important for a business to survive that these money flows (inflows) be maintained, particularly knowing who owes you money and when.

At WebLedger, we understand the struggle for businesses with this. That is why we designed WebLedger Books to include functionality that simplifies managing customer dues and payments. Let’s discuss how you can effectively monitor your customer accounts, organise payment due dates, automate your follow-up, and employ a strong receivable tracker so that your finances are always in order.

The Foundation: Knowing Your Customer Ledger

Think of your customer ledger as the in-depth financial journal of every client. Each time you issue an invoice, accept payment or make a credit note, it is recorded against that customer in the ledger. It gives you a live snapshot of your financial relationship with every customer.

Without a properly maintained customer ledger, you lose valuable information. You will not be aware of who owes you money when it is due or how much you have already received. This confusion may result in:

  • Overdue payments: Omitting to collect money that is yours.
  • Damaged customer relationships: Sending unnecessary reminders or, conversely, allowing overdue payments to take too long.
  • Cash flow issues: Tying up too much of your working capital in outstanding invoices.
  • Inaccurate bookkeeping: Making it difficult to grasp your real financial situation.

WebLedger Books computerised your customer ledger. Every invoice you issue is linked to the correct customer, and each payment you accept is associated with that invoice. This provides a correct and up-to-date record of every transaction.

The Challenge: Locating the “Payment Due”

The word “payment due” holds significance in the business world. It is the time when your hard work should be transformed into income. Still, it is hard for most businesses to know how to identify payments that are due and when they actually became due.

Hand-checking piles of invoices or complicated spreadsheets to determine who owes you money is time-consuming and error-prone. Consider monitoring hundreds or thousands of payment due dates from various customers.

WebLedger Books eliminates this issue. Our system automatically displays the due dates for all of your invoices. You can see easily:

  • Current dues: Payments are soon due.
  • Overdue payments: Bills that are beyond their due date.
  • Ageing analysis: For how long payment is overdue, allowing you to prioritise your follow-up.

This clear vision enables you to act rather than just react to an ever-growing list of outstanding bills.

The Art of Persistence: Effective Follow-Up

Once you locate a payment that is owed, the subsequent key step is good follow-up. This involves having a smart strategy for balancing tenacity with maintaining good customer relations.

Terrible follow-up can occur in the following ways:

  • Too aggressive: You could drive away customers with tough or excessive reminders.
  • Too passive: You allow payments to become overdue, potentially causing you to lose money.
  • Inconsistent: You only send reminders occasionally or never.
  • Disorganised: You may forget whom you’ve contacted, when, and what resulted from it.

WebLedger Books assists you in the process of follow-up. Although we do not send emails ourselves, our system provides you with all that you require for effective follow-up:

Clear overdue indicators: You can clearly view which invoices are overdue and by how many days.

Customer contact details: You can easily locate phone numbers and email addresses to call directly.

Payment history handy: If you are calling a customer, you have information at your fingertips so you can have professional discussions about certain invoices, amounts, and due dates.

Notes and communications history: Although WebLedger does not have an integrated CRM, you can maintain your own notes alongside the financial information in order to monitor your conversations regarding bills that are overdue.

With this information, you could tailor your follow-up strategy:

  1. Friendly reminders for payments that have just become overdue.
  2. Blunt communication for payments that are well beyond due.
  3. Prioritise follow-ups by how long payments have been overdue and by invoice amounts.

A good follow-up isn’t simply about receiving payment; it reflects your professionalism and indicates to your customers that paying on time is significant.

The Big Picture: Your Receivable Tracker

Aside from individual customer accounts, you require a total picture of all the money due to your company. This is where an effective receivable tracker comes into play. A receivable tracker provides you with a view of all your outstanding invoices, enabling you to effectively manage your accounts receivable.

Without an adequate receivable tracker, you may have problems such as:

  • Unexpected cash flow issues: Having no idea where money is coming in can result in surprising shortages.
  • Inability to forecast: You might find it difficult to estimate future income, which makes it hard for you to plan your business.
  • Missed opportunities: You could spend time on minor tasks while your receivables await attention.
  • Compliance violations: You might inaccurately report your financial health.

WebLedger Books is your end-to-end receivable tracker, providing you with a clear picture of your accounts. Our simple dashboard and reports enable you to:

Check your total outstanding amount: You immediately see how much money is owed to your business.

View breakdown by customer: You view which customers have the largest outstanding balances.

Review past-due payments: You can determine patterns and target collection efforts according to how many days they’ve been overdue.

Monitor payment patterns: You can review how fast your customers are paying and identify any persistent problems.

This overall perspective enables you to make smart decisions, enhance your cash flow, and actively manage your financial well-being.

WebLedger Books: Your Partner in Creating Clear Reports

One of the strongest aspects of WebLedger Books is that it can generate very detailed, outstanding reports. We are aware that companies have to see their overall financial situation, not solely specific transactions. For this reason, we designed our reporting facilities so that you can get a clear vision of what you owe and what other people owe you.

Outstanding Receivable Report for Every Debtor

This report enables you to view exactly how much every customer owes you. With the simple touch of a few buttons, you can generate an in-depth report for each debtor with:

  • Invoice information: A list of outstanding invoices, invoice number, date, due date, and total amount.
  • Outstanding balance: The actual amount owing on each invoice.
  • Ageing status: The number of days that each invoice is past due, grouped into categories (e.g., 0-30 days, 31-60 days, 61-90 days, and 90+ days). This does enable you to target your follow-up.
  • Total outstanding per debtor: The sum of the overdue amount for each customer.

If you have to call a client regarding their outstanding payment, you can readily access their report. Such a report allows you to have well-informed conversations, citing specific invoices and figures. It makes your collection process more effective and reflects professionalism to your clients. You could easily determine whether a customer has several outstanding invoices or a single one, which allows you to vary your communication tactic.

Managing Your Payments to Creditors: An Important Guide

Just as it’s important to track what customers owe you, it’s also crucial to manage your payments to suppliers and vendors. Paying your creditors on time helps maintain good relationships and prevents late fees.

WebLedger Books provides a report for each creditor that lets you:

  • View all your outstanding bills for every supplier: This is a list of what you owe, bill numbers, dates, and amounts.
  • View your outstanding amount: This displays the amount that you still owe for every bill.
  • Monitor due dates: This informs you when every payment is due so you could better manage your cash flow.
  • Display total amounts owed: This displays the total amount you owe to every supplier.

This is a payables report that you should maintain in order to keep tabs on your payables. It assists you in:

Preparing payments: Ensure you have sufficient funds at the time of payment.

Making payment priorities: Determine which suppliers should be paid first depending on due dates and urgency.

Evading late charges: Schedule payments so that you avoid additional fees.

Develop strong supplier relationships: Timely payment establishes trust and ensures they will continue supplying or providing services.

Consolidated Outstanding Reports: A Clear Overview

WebLedger Books provides consolidated outstanding reports that reveal all your unpaid amounts from your clients in one location.

All Debtors Outstanding Report: This report rolls up all of the money your customers owe you. You can view a list of customers who haven’t paid, their cumulative balances, and usually a breakdown of how long the debts have been outstanding. This report allows you to know your financial risk and identify trends with your customers. You can quickly determine whose or which groups of customers have the largest unpaid amounts and target your collection efforts accordingly.

All Creditors Outstanding Report: This report displays all the amount of money you owe your suppliers and vendors. It provides you with a clear picture of your outstanding debts. This data is useful for planning your cash flow and financing your obligations.

These reports are not mere lists; they are handy filters that allow you to filter, sort, and analyze your data in various manners. You can filter by date range, customer groups, or certain invoice statuses. This gives you the flexibility to obtain the insights you require when you require them.

The WebLedger Advantage: Simplicity and Control

We make things simple and empower businesses at WebLedger. We think that handling your finances must not be difficult. Our product is simple to use and makes it possible for anyone to:

  • Create and track invoices with ease: Send out professional invoices in minutes.
  • Make payments correctly: Enter received payments against invoices with ease.
  • Get reports in minutes: Get the information you need within a few clicks.
  • See your finances clearly: Draw on easy-to-understand dashboards and reports, free from technical jargon.

When you’re with WebLedger Books, you’re not merely acquiring software; you’re getting a partner that assists you in:

Enhancing cash flow: Monitor and chase payments actively.

Minimising bad debts: Catch and solve overdue payments early.

Saving effort and time: Automate tasks that otherwise eat away at precious time.

Encourage better customer relationships: Maintain accurate records and communicate professionally.

Make smart business decisions: See clear and detailed financial insights.

Read More: Why Shops Are Switching to Online Invoicing

Conclusion

In the current rapid-paced business climate, monitoring payments from customers is critical to success. Maintaining an accurate customer account record, recognising payments owed, reminding effectively, and employing a good receivable tracker are all vital steps.

WebLedger Books provides the solution you require to control these aspects of your business. Our capabilities include the option to generate detailed reports of outstanding payments for both debtors and creditors, providing you with complete control and transparency over your finances.

No longer wonder about your outstanding payments, and begin controlling them actively. Enjoy the peace of mind of knowing where your money is and when it will be there.

Are you prepared to get a handle on your customer payments? Stop by WebLedger today and discover how WebLedger Books can assist your accounting.