How to clean up a client's AR aging report

A Direct Answer on Cleaning Up AR Aging Reports

To fix an aging report, start by matching each payment from the bank feed to its corresponding invoice. This step ensures that all payments are applied correctly. Next, look for duplicate customer records that might lead to confusion or errors in invoice application. Finally, confirm that payments marked as overdue are indeed unpaid. This means checking off invoices that were settled but never recorded as such. The key is to handle each step manually at first, ensuring accuracy before considering automation.

What Most Owners Try First, and Why It Stops Working

Most business owners start by using spreadsheets and basic accounting software to manage their aging reports. Initially, this seems manageable, but as your business grows, this method becomes a time-consuming hassle. Human errors creep in, like forgetting to apply payments or accidentally duplicating records. Over time, this leads to messy records that require a monthly cleanup, taking time away from tasks that actually grow the business.

What to Do Instead

Here's a simple plan to clean up your AR aging report today, without needing any fancy software:

1. Match Payments: Start by manually matching every payment from your bank feed to its corresponding invoice. Take it slow to ensure precision.

1. Resolve Duplicates: Scan your records for duplicate customer entries. Combine these where necessary to maintain accurate records.

1. Verify Settled Invoices: Go through your invoices to mark those that have been settled but still show as open. This avoids any false overdue alerts.

1. Review Regularly: Set a weekly cadence to review new payments and invoices, keeping everything up-to-date without needing a massive monthly overhaul.

How This Gets Easier with Scheduled Follow-up

Once you've put out the fires, maintaining a clean aging report gets simpler. Schedule automated follow-ups, but ensure nothing updates without your nod. With ARPilot, for example, you draft messages in advance and approve them before they're sent. This way, follow-ups happen on time, but you're never blindsided by an unexpected customer reaction.

FAQ

How can I stop my client's aging report from becoming a mess again?

Regularly match payments to invoices from your bank feed, and address duplicates as they arise. Set a schedule for these tasks to stay ahead.

Is there a way to automate matching payments to invoices?

Yes, some tools can help, but they work best when you review and approve each action. ARPilot ranks ambiguous items for you to decide before applying any changes.

What should I do if I find a lot of duplicate customer records?

Consolidate them into a single, accurate record. Maintain consistent naming conventions to prevent future duplicates.

Can a tool like ARPilot integrate with my accounting software?

ARPilot connects seamlessly with QuickBooks Online, allowing you to manage follow-ups without altering your existing records.

How often should I review my AR aging report?

Weekly reviews are ideal for catching errors early and ensuring that your records remain accurate and reliable.