Subscribe to our blog
At the risk of sounding like a broken record (we’ve covered this a few times), the key to staying on top of your accounts receivables, implementing good credit control, and getting paid on time, is good administration.
We know it’s not flashy or exciting, but making sure you’ve got your admin right will help you get paid faster, avoid bad debt, allow you to accurately predict your cash flow, and even improve your relationship with your customers.
To help you out, we’ve put together a guide to how to create your own accounts receivable template in either Microsoft Excel or Google Sheets.
Before we get started on our template, we need to outline what we mean by accounts receivable.
Your accounts receivable is essentially a list of all of the invoices you’ve sent to your various customers and the payments that have been made. It includes vital details such as the dates you sent your invoice, invoice payment dates, payments received, and payments still outstanding.
Your accounts receivables are a cornerstone of your business accounting and provide the data that underpins certain vital accounting functions, including:
The process for using your accounts receivable is generally broken up into four steps:
The first step it to establish what, if any, credit practices you might have. Depending on the specifics of your business, you might allow customers to make purchases of goods or services on credit.
Such purchases, and the details associated with the credit arrangement being offered, are tracked and recorded through your accounts receivable.
Your accounts receivable is where you track all the invoices you send to your customers, what payments have been received and which are still outstanding.
As part of the credit, invoicing and payment process, your accounts receivable is where you track any lines of credit offered, any outstanding payments and mark any received payments as settled.
Since your accounts receivable contains all the information on what invoices have been sent, what payments have been received, what lines of credit have you have open and what payments are outstanding, it is a hugely important source of data.
That data can be turned into reports that predict cash flow, analyse aged receivables, chart customer payment data, and provide other vital insights for your business.
When it comes to creating an account receivable template for your business, you have two choices.
Firstly, you can download a pre-made template, like this one from Chaser.
We’re a big fan of templates and how they can streamline your credit control process, which is why we offer a range of our own, from email templates for friendly late payment reminders to credit control and debt collection policy templates.
The other option is to create your own in a program like Microsoft Excel, Google Sheets or anything similar. To help you out, we’ve put together a step by step to creating your own simple but effective accounts receivable template.
Just follow the steps below:
If you’d like to hear how using Chaser can help you get control of your accounts receivable and implement the kind of credit control that help you get paid faster and more often, book a demo with us today