Scheduling Accounts Receivable


By Peter Emerson


The accounts receivable schedule is a listing of the customers making up the total accounts receivable balance. Most businesses prepare an accounts receivable schedule at the end of each month. Analyzing the accounts receivable schedule may help one identify potential cash flow problems. The typical accounts receivable aging schedule consists of six columns. The first column lists the name of each customer with an accounts receivable balance. The second column lists the total amount due from the customers. Column three is the "current column" that lists the amounts due from customers for sales made during the current month. Column four shows the unpaid amount due from customers for sales made in the previous month. These are the customers with accounts one to 30 days past due. Column five lists the amounts due from customers for sales made two months prior. These are customers with accounts 31 to 60 days past due. Finally, column six lists the amount due from customers with accounts over 60 days past due.

If you're using one of the many available accounting software packages for billing and accounts receivable processing, check it to see if it prepares the aging schedule automatically. Most accounting software packages will prepare an accounts receivable aging schedule at the touch of a button. The schedule allows one to spot problems in accounts receivable early enough to protect a business from major cash flow problems. Overdue amounts attributable to a number of customers may signal that your business needs to tighten its credit policy toward new and existing customers. The aging schedule also identifies any recent changes in the accounts making up your total accounts receivable balance. Almost every business has to deal with customers who are delinquent.


More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Management Information:

Related Articles


Communicate To The Four Main Personality Types
You probably know this already, but there are generally held to be four main personality types, which I call: Extrovert, Amiable, Analytical and Pragmatic . Let's take a moment to consider each of them in the workplace.
Business Fails When We Do Not Talk
You may remember being told as a child, "Keep quiet!""Children should be seen, not heard," and "You talktoo much." You were a "good" kid if you kept quiet.
Think Before You Talk
What you say to other people can make or break you and it can happen without you even knowing about it. That old saying "loose lips sink ships" is oh so true in business.
Enhancing the Motivational Climate of Your Workplace
It has been well documented that employees' productivity and job quality increase when we are made to feel welcome at work. In other words, when the motivational climate is enhanced to meet their needs they produce quality work at the 100% rate.
Keep Your Good Workers by Building Good Leaders
A recent report from the American Hospital Association's Commission on the Workforce asked healthcare workers key questions about the performance of their front line managers. The study concluded that an employee's decision to stay with or leave an organization is primarily based on his or her relationship with an immediate supervisor.
Another Use for Meetings
Every meeting is a laboratory where you can observe and learn important things about the people who attend. In fact, you can use meetings to identify people who merit being promoted into leadership positions.
Improve Operations by Restructuring
Transitioning from Vertical Hierarchies to Decentralized / Flatter OrganizationsThe need to restructure for traditional, bureaucratic firms is essential in the fast paced, dynamic business world today. Team-based organizations are largely successful in having all of the people in the firm feel accountable and responsible for the operation and success of the enterprise, not just a few people in senior management positions.
Delegation for Business Leaders - How Letting Go Works
A leader's role is to focus on those areas of operation where he or she can deliver the greatest value and this requires huge shifts in perspective of the role. Leaders differ from managers in terms of accountability.
How to Manage Your People Well: Tips for Managers of Training
As a training manager, there are two important aspects to managing your people well: hiring, supervising, and motivating (managing with your people) and building up corporate support for your department (managing for your people). Unfortunately, training is not well understood by some executives, and its benefits can be hard to assess.
What Your Employees Want You to Know (But You Might Be Afraid to Ask)
This is a challenge for every company owner and manager. You have tremendous plans for growth and expect a lot of your employees.
The Ivory Tower Syndrome
"His cardinal mistake is that he isolates himself, and allows nobody to see him; and by which he does not know what is going on in the very matter he is dealing with. - Abraham Lincoln on his reason for relieving Gen.
Phone Sex is Bad for Business
On August 3rd/2005, Reuters reported that a German man had colluded with a phone sex operator to defraud his employer's company out of approximately 16,000 Euro or almost 20,000 US dollars, by making 160 phone calls over a year and a half from work. He apparently split the profits 50/50 with the phone sex operator.
Innovation Management - smart people dont necessarily produce great ideas
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation.
Creativity and Innovation Management - Money Doesnt Do It
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas.
Integrity... Should It Matter?
In our fast paced work culture, manned by technology savvy generation in a globally competitive environment, quality and productivity became the battle cry of corporations to stay in business. Though this is not necessarily bad, an equally important ingredient to succeed is seemingly taking the back seat.
Where Else in Your Business Do You Accept a 60% Failure Rate?
I recently surveyed CEOs and Business Leaders of large companies and small, profit and not-for-profit, and I asked just them just one question:'What is the single biggest factor that you believe will inhibit your sustained profitable growth into the future?' A, perhaps, surprising 37% responded that it was people - the recruitment, motivation and retention of people that was the biggest factor.So let's address the first one - recruitment.
Creativity and Innovation Management - Motivation and Management Layers
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas.
Dialogue vs. Discussion
Have you ever sat in a meeting where everyone is busy giving their point of view and trying to prove why they are right? Where no one is actually listening or trying to understand other individuals' points of view. The alternative meeting format is where everyone listens to and agrees with the meeting leader.
Entitlement Programs Kill Productivity
In articles I've written over the years, I have used "laissez-faire," a term more frequently used to characterize governments than businesses, to describe a rather laid-back management style. When I use this term, I am referring to management personnel who put very little pressure on employees to achieve their full potential by pushing them toward peak performance levels.
Organizational Techniques - Tickler and Chron File
One of the biggest problems we encounter in our consulting with businesses, and our students is time management and organizational techniques. This article will concentrate on some good organizational strategies.