Managing accounts receivable can be a time-consuming task, but it doesn't have to be. To simplify your financial processes, we're offering a collection of accounts receivable excel template, compatible with both Excel and Google Sheets.
These accounts receivable template are designed to help you track invoices, manage payments, and maintain a clear overview of your financial health. Download your templates today and take control of your receivables.
Creating an accounts receivable template
When it comes to creating an account receivable template for your business, you have two choices.
Firstly, you can download a pre-made, free accounts receivable 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 ledger template.
These steps use Google Sheets as an example, but you can easily create an accounts receivable Excel template or similar using the same steps.
Just follow the steps below to set up a free template you can reuse to record invoices and track what each customer owes:
-
The first thing you'll need to do is set up a new Google Sheets sheet. Set up columns as Invoice Number, Invoice Date, and Due Date in that order.
-
Once you've done that, set up column F as Total Amount Due.
-
You'll then want to set up columns F through J as Payment Columns. The number of payment columns you're going to need will depend on the specifics of your business and how you process your customer's payments. If you accept partial payments and need to track payments in multiples, you will need more payment columns.
-
At the end of your Payment Columns, you'll want to add in a Balance Due to track your due dates. We'll use column J for this example.
-
Click and drag the formula down to the final customer account on the spreadsheet. This will auto-populate the full column with the difference between what the customer has paid and what is still outstanding.
-
Set up the cell at the bottom with the Outstanding Receivables Add in the =SUM formula for all the cells in the balance sheet and this will add up all of the outstanding balances and make it easier to track overdue payments too.
What is an accounts receivable template?
An accounts receivable template is a tool designed to help track invoices, manage payments, and maintain a clear overview of financial health. It simplifies the task of managing accounts receivable by efficiently recording and monitoring outstanding invoices.
Why do you need an accounts receivable template?
An accounts receivable spreadsheet template is an invaluable tool for businesses of all sizes, serving as a structured framework for managing outstanding invoices and ensuring timely payments.
It streamlines the accounts receivable process by providing a standardized format to record and track crucial information related to customer invoices.
Key benefits and functions:
- Efficient invoice tracking: The excel accounts receivable template allows for the systematic recording of invoice details, including customer information, invoice number, date, due date, description of goods or services, and amount due. This organized approach facilitates easy tracking of outstanding invoices and aids in identifying overdue accounts.
- Payment management: By incorporating sections to record payment dates and amounts, this accounts receivable form enables efficient management of incoming payments. It helps reconcile payments with outstanding invoices, ensuring accurate and up-to-date accounts receivable records.
- Clear financial overview: The accounts receivable excel spreadsheet template free provides a consolidated view of accounts receivable, offering insights into the total amount owed by customers, aging of receivables, and overall financial health. This information is crucial for making informed business decisions, managing cash flow, and identifying potential collection issues.
- Improved collection efforts: With a clear picture of outstanding invoices and payment history, businesses can proactively manage collections. The simple accounts receivable template aids in identifying overdue accounts and enables targeted follow-up with customers, potentially reducing bad debt and improving cash flow.
- Reduced errors and disputes: The standardized format of the AR statement template minimizes the risk of errors and discrepancies in invoice recording and payment tracking. This can help prevent disputes with customers and streamline the resolution process if any issues arise.
- Enhanced professionalism: Utilizing a professional accounts receivable template demonstrates a commitment to organized financial management and can enhance a business's reputation with customers and partners.
What your accounts receivable tracking spreadsheet should include
Essential Components of an Accounts Receivable Tracking Spreadsheet
An effective account receivable report format should incorporate the following key elements to maintain a healthy cash flow and minimize outstanding debts:
1. Efficient invoice tracking
- Invoice details: Record essential invoice information, including invoice number, date, customer name, description of goods/services, amount due, and due date.
- Payment status: Track whether an invoice is paid, partially paid, or unpaid.
- Aging schedule: Categorize invoices based on their age (e.g., 0-30 days, 31-60 days, 61-90 days, 90+ days) to identify overdue accounts.
- Customer information: Maintain accurate customer contact details for efficient communication and follow-up.
2. Payment management
- Payment dates and amounts: Record the dates and amounts of payments received for each invoice.
- Payment methods: Note the payment method used (e.g., check, credit card, online transfer).
- Outstanding balances: Calculate the remaining balance for each invoice after payments are applied.
- Refunds and credits: Track any refunds or credits issued to customers.
3. Clear financial overview
- Total accounts receivable: Calculate the total amount owed by customers.
- Average collection period: Determine the average number of days it takes to collect payments.
- Cash Flow forecast: Project future cash inflows based on expected payment dates.
- Bad Debt provision: Estimate the amount of uncollectible debts and create an allowance for doubtful accounts.
4. Improved Collection Efforts
- Automated reminders: Set up automatic email or SMS reminders for upcoming and overdue payments.
- Collection notes: Document all collection activities, including phone calls, emails, and letters sent to customers.
- Escalation procedures: Define a clear process for escalating collection efforts for persistently overdue accounts.
- Dispute resolution: Track and manage customer disputes or discrepancies related to invoices.
5. Reduced errors and disputes
- Data Validation: Implement data validation rules to minimize errors during data entry.
- Formula Protection: Protect formulas from accidental changes to ensure accurate calculations.
- Clear Documentation: Provide clear instructions and guidelines for using the spreadsheet.
- Regular Backups: Create regular backups of the spreadsheet to prevent data loss.
6. Enhanced professionalism
- Customizable templates: Use professional-looking templates to create invoices and statements.
- Clear communication: Maintain clear and concise communication with customers regarding invoices and payments.
- Timely follow-Up: Respond promptly to customer inquiries and concerns.
- Consistent branding: Incorporate your company's branding elements into invoices and other communication materials.
By incorporating these essential components into your AR tracking spreadsheet, you can streamline your invoicing and collection processes, improve cash flow, and maintain positive customer relationships.
How to use this accounts receivable tracker template
A free accounts receivable aging report excel template can simplify this process, providing a centralized system for managing outstanding invoices and customer payments. Here's a detailed breakdown of how to leverage such a template effectively:
1. Setting up your template
- Download and choose your format: Select a template compatible with your preferred software (Excel, Google Sheets, etc.). Download and open it.
- Customize columns: Depending on your business needs, you might add or modify columns. Common fields include:
- Invoice Number
- Invoice Date
- Customer Name
- Customer Contact Information
- Invoice Due Date
- Payment Terms
- Invoice Amount
- Amount Paid
- Outstanding Balance
- Payment Status (Paid, Partially Paid, Unpaid)
- Payment Date
- Payment Method
- Days Sales Outstanding (DSO)
- Aging Bucket (e.g., 0-30 days, 31-60 days, etc.)
- Collection Notes
2. Inputting and managing invoice data
- Enter invoice details: As you issue invoices, meticulously enter all relevant details into the template. Ensure accuracy to avoid discrepancies later.
- Update payment status: As payments are received, promptly update the payment status and amount paid fields. This keeps your outstanding balance accurate.
- Record payment information: Log the date, amount, and payment method for each received payment. This creates a clear payment history.
- Calculate key metrics: The template should include formulas to calculate crucial metrics like outstanding balance, DSO, and aging. These provide insights into your AR performance.
3. Monitoring and analyzing your AR
- Regularly review aging: The aging schedule categorizes invoices by how long they're overdue. This helps you prioritize collection efforts and identify potential bad debts.
- Track customer payment behavior: Over time, you'll notice patterns in how customers pay. Use this information to tailor your collection strategies and payment terms.
- Identify trends and issues: Regularly analyze your AR data to identify trends, potential cash flow problems, and areas for improvement in your invoicing and collection processes.
4. Enhancing your AR management
- Set payment reminders: Implement a system for sending automated payment reminders to customers before and after invoices are due. This can significantly improve on-time payments.
- Document collection efforts: Keep detailed notes on all collection activities, including phone calls, emails, and letters. This provides a record and helps track progress.
- Collaborate with accounting software: If possible, integrate your AR tracker with your accounting software to streamline data entry and reconciliation.
- Maintain data security: Regularly back up your AR tracker to prevent data loss. Consider cloud storage for added security and accessibility.
By diligently using an AR tracker template and following these best practices, you can optimize your accounts receivable management, improve cash flow, and support your business's financial health.
