How to track accounts receivable for your small business

Accounts receivable are amounts customers still owe for invoiced sales or services. Each balance needs a customer, invoice reference, amount, and agreed payment terms. A list of names alone does not explain the debt.

For contractors, cleaning businesses, and repair services, completed work may still be unpaid. Knowing the open amounts helps you plan without assuming every invoiced dollar is already in your bank account.

An invoice records what you charge for the work. A payment records money you actually received. Keep these records distinct and connected. Sending an invoice is not a reason to mark it paid.

Before recording a payment, confirm receipt and identify its invoice. “I will pay tomorrow” is a follow-up agreement, not money received. If a customer has several open invoices, confirm the reference instead of choosing one by guesswork.

A customer may pay some now and the rest later. Record each payment amount and date against the right invoice. The outstanding balance is the invoice total less recorded payments, taking any documented adjustments into account.

Do not replace the original invoice total with the latest payment. You need to see both the value of the work and the money received. If something does not match, review the documents before marking the balance settled. An unpaid balance needs follow-up rather than casual deletion.

Ana completes a handyman job and issues a $1,000 invoice. The customer pays $400. She records that payment against the invoice, leaving $600 outstanding. The job is invoiced but not fully paid.

Ana checks the agreed due date and notes when to follow up. When the remaining $600 arrives, she records a second payment. The two payments total $1,000, leaving no open balance in this example.

If the customer says they already paid, Ana checks the transaction date and reference before adding another payment. That check helps avoid duplicate records and an inaccurate balance.

Set a regular time to review customer balances. Separate invoices still within their terms from overdue invoices. Use clear language and keep a written record of agreements.

• ✓Review open invoices by customer.
• ✓Check that received payments have been recorded.
• ✓Confirm the remaining balance on each invoice.
• ✓Review due dates and agreed terms.
• ✓Contact the customer with the invoice reference and amount due.
• ✓Note their response and your next follow-up date.

LibroRápido365 connects invoices with full or partial payments to keep outstanding amounts visible. The dashboard helps you review business activity and amounts still due without treating every invoice as cash received.

Use those records as the starting point for customer follow-up. Confirm payments before recording them and check agreed terms before contacting a customer. Current records make the business overview more useful for deciding your next steps.