 QuickBooks Online Accounts Receivable Aging Reports Get ready to start moving on up with QuickBooks Online We're going to be using the free QuickBooks Online Test Drives Searching in our online search engine for QuickBooks Online Test Drives Selecting the option that has Intuit.com and the URL Intuit being the owner of QuickBooks Support Accounting Instruction by clicking the link below Giving you a free month membership to all of the content on our website Broken out by category, further broken out by course Each course then organized in a logical, reasonable fashion Making it much more easy to find what you need than can be done on a YouTube page We also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable So once again click the link below for a free month membership to our website and all the content on it We're going to be picking the United States version of the software and verifying that we're not a robot Zooming in a bit by holding down control up on the scroll wheel We're currently at 125% on the zoom in Cog dropdown noting that we're in the accountant view as opposed to the business view We may be toggling back and forth between the two views so you can see where stuff is located in each of them Right clicking on the tab up top to duplicate it as we do every time To put our major financial statement reports in Right clicking the duplicated tab to duplicate again as the tab to the right's thinking We're going to tab to the middle, reports on the left Open up the balance sheet as that's thinking tab to the right Reports on the left this time the P to the L the profit to the loss the income statement Closing up the hamburger, hamburger and other words changing that range From 010122 tab to 123122 and tab to run it And then back to the middle tab closing the boogie Rolling up changing the range from 010122 tab to 123122 tab and run it to refresh it That's the setup process we do every time remembering that these are the two major financial statement reports All other reports which is our point of focus in this section Refer typically to one or multiple line items on these two major financial statement reports Now we're going to go into the common report if you're on an accrual basis for the revenue cycle of Or one that's related to accounts receivable Now remember accounts receivable is only there if you have an accrual method on the revenue cycle So if I hit the plus button for example scrolling down a bit in the customer area There's a couple different ways your customer cycle might look You might have a very simplified revenue cycle say in gig work When you just get money through the deposit from Amazon or YouTube or whatever You wait till it clears the bank possibly using bank feeds and you record it with a deposit In that case you're not going to have to track accounts receivable Or you might still be in a cash based system using a cash register or something like that In which case you'd be recording a sales receipt at the point of sale typically Once again you're not going to have an accounts receivable But if you're in a system where you have to do the work first like a bookkeeping firm Like a law firm, like a landscaping firm then or company or firm company Then you'd have to invoice which increases the accounts receivable And of course track the accounts receivable to try to get the received payment That you can then deposit into the bank account So in that instance clearly even small companies have a big incentive to focus on accounts receivable To try to collect on the accounts receivable As companies get bigger you can have whole departments that are focused in on tracking the accounts receivable Trying to collect the accounts receivable and value what the true value of the accounts receivable is Possibly using an allowance method in order to do so So some of the major reports related to that if I go to the tab to the right Right click on this I'm going to duplicate again So that we can open up some of these related reports to the accounts receivable Going down to the reports on the left Closing up the hand boogie up top Scrolling down we're looking for the reports that say Who owes you money? It says who owes you that typically we would be thinking Well that's got to relate to the accounts receivable account because that represents who owes us money So we got up top the major ones accounts receivable aging detail accounts receivable aging summary This one is start off which would be applicable or appropriate Given the fact that it's probably the most common one The other ones in here we've got the collection report And then we've got the customer balance detail report This one is like more of a straight sub ledger with detail And then you've got the summary on that one And then you've got the invoice list The invoices are the things that increase the accounts receivable So once again it's kind of like another report that's giving us more detail on the AR Invoices and receive payment that's giving us a little bit more detail And then you've got the open invoices which invoices being related to the increase in the accounts receivable If they have not yet been paid you would think the open invoices would then add up then in essence too What's in the accounts receivable statement list are the statements that we're going to give to our receivables Or our customers from time to time And then the terms that's going to help us to fill out the form Unbilled charges things that we have put in a bill for and made it billable But we haven't added to the invoice yet and unbilled time Same thing we entered time but we haven't entered it into the invoice So our major primary sub ledger reports to the accounts receivable are these items such as the customer balance detail Let's look at that one first I'm going to click on that one and scroll up and the range change I'm going to say it says all dates we'll keep it there Run it holding down control scrolling up a bit Now if I go back to the balance sheet Notice that this report or this account like all accounts has a sub ledger or I'm sorry a general ledger If I click on it which is in essence a general ledger giving us the information by type We can see it goes up with invoices down with payments That's what we expect to happen in the accounts receivable And this would be the transaction report This is a great report but it doesn't give us the detail what that we want Which is to break out the accounts receivable not by date of transaction but by customer So that's what we're going to do with these other reports going back Scrolling back up a bit And if I go to this report this is giving us that data that is now broken out by customer So if I go down to the bottom the total is now at the five thousand two eighty one fifty two Which should match the five thousand two eighty one fifty two over here But giving it by who owes us the money That's important because we need to collect on the money Now in practice we might not actually use this report as much Unless we're trying to talk to like a meeting or a group or something like that a presentation Because we would be looking at the same data internally By going let's say to the first tab and go into the sales area And closing up the hamburger we could look at all sales transactions And we can sort this way and say we're going to sort by the open invoices This way so that can give us a list of the open invoices down below We don't get that nice total or we do get a total five two eight one And over here on the balance sheet we've got the five two eight one So even that gives us a nice total so the reports like a little bit redundant Because I can kind of find that information over here for internal You know reporting purposes and to try to collect on the money from here And then you can also do the same thing in the invoices tab where you could sort in that fashion You could do a similar thing in the customers tab If I was to sort for open invoices for example Now I can see the customers that have open invoices and a list two invoices versus one invoice This report doesn't give us that nice total But this is probably where we would go in practice So let's go back on over here This report can also be useful to export and possibly create pie charts on or something like that You could you could break out which customers owe you the most money by pie chart And that kind of stuff which we might touch on in the future Let's go back to the reports and go down to who owes you money And this one this is the accounts let's go to customer balance detail So if I go into the customer balance detail report same stuff But now we've got the detail which is the invoices So we first have the customer and then the invoices within Within there that show us the outstanding items the total should still tie out to the end That's quite similar to the internal kind of area of the customers list And breaking this out by open invoices Because now it's given us kind of the detail by customer And then we can go into each of those customers and look at those open invoices So you might be able to sort and change this data to look at more detail For the invoices that were closed possibly as well But that's going to be that I'm going to go back then let's do it this way this time Into the reports scrolling back down so who owes you money So there we've got the detail report now the invoice list Again usually you're going to be looking at that possibly from the internal side of things over here Sorting possibly in the sales area by the invoices open invoices Or closed or however you want to sort them And then you've got the invoice list invoice receive payments Again possibly you're going to be working over here in the customer center open invoices Again oftentimes you can sort those open invoices over here in the customer center And then the statements will typically be generating over here as well And so the other ones that have added information would be like the aged receivable summary Let's look at the aged receivable summary This is a quite common report that gives us a little bit more data That isn't really in this customer center quite as readily And that's this common breakout up top where you've got the receivables now by customer You still got the totals on the right But now you've got it broken out by how outstanding some of the items are Either their current or their 1 to 30 days out past due 31 to 60 61 to 90 or over 90 days past due This gives us a nice quick visual about particular customers And whether or not of course they're paying on time And the more past due items are the more unlikely it is that we're going to get paid So this is often also a common form that will be used to try to figure out what the actual value of the accounts receivable is Possibly using like an allowance method So let's take a look at that just to give an idea of that If I go back to the receivables here This amount right here represents who owes us money It's on the books as an asset We hope that it's going to be converted into cash at some point when we collect on it But especially as you get to be a larger business It's quite likely that you're going to be making sales and not being able to collect on some of them Because the person is going to disappear or whatever It depends on the business in terms of how much of the receivables you're going to collect So you don't know which ones you're not going to collect But you might have a pretty decent idea that this number is obviously overstated And that you're going to collect something below that And then the question is, is there a reliable estimate that you could make That would tell you, you know, give you a reliable amount and say, hey, look, that's my receivables But I'm estimating that so much of those aren't going to be collectible We would call that an allowance method And possibly put an account in here under the accounts receivable called, you know, an allowance Which would be a contra receivable decrease in the receivable amount And so that's a, in one method you might do that There's a couple methods you can look at the, at the revenue for the current period And determine how much of that revenue is likely not to be collectible based on past data Or you can look at a report like this and say, well, look, the more outstanding some of these items are I'm going to give a value and say it's less likely that I'm going to collect on that To try to determine how much of this $5,281.52 is actually something I'm going to collect on Versus something that I'm going to have to eventually write off as a bad debt in the future And that's another thing that clearly often comes up with The receivables is if you've got a lot of stuff out here that's in the 91 plus days You're clearly overstating your receivables Whether you use an allowance method or direct write off method At some point you're going to have to say, okay, I'm not going to be able to collect on that And I'm just going to, I'm going to write it off, right? I'm going to write it off to bad debt Meaning I'm going to lower the accounts receivable and instead of increasing cash I'm going to have to expense it to bad debt or reverse the sale or something like that And this report is often used for that kind of process Now you could change some of this up top, so you could say this is kind of like the standard 31 to 60 and so on But you could change the days and you could change the number of periods You know, if I change this to six, then it could give us the more detail So now you could say, okay, I'm going to give them this much until I write it off to bad debt If they go past that point to over 551, then maybe I'm going to give up on it at that point Either give it to collections, you might be able to sell your receivables to collections and let them go after it Past that point because they've or you could or you could write it off at that point might be a decision process So those are the general formatting Let's look at the aging real quick. I'm going to hit the the carrot or the the hamburger And go back in here, scroll back down, close up the hamburger And then if you do the same one, now you've got the aging details So now you've got the aging detail, so it gives you the a similar thing, but now the agents are broken out this way So you've got some information in terms of the invoices that are within there So now you can you can start to look at these invoices that are past due in this fashion And start to maybe organize that might be a nice way to organize the information to try to see how you can collect on the information And that type of report so five two eight one fifty two still ties out to the balance sheet five two eight one fifty two So the bottom line is if you have invoices if you do the work before you collect the money You're going to have to track the accounts receivable the accounts receivable goes up when you make an invoice Then you're going to have to collect on it and when you collect on it usually you'll be over here working in The what I would call the the customer center organizing by the sales your open invoices Or by customer to try to collect on the open invoices but it's useful to note that when you're trying to collect on those The sum of all your open invoices in essence should tie out to what's on the balance sheet for the accounts receivable here And you could make a sub ledger that's breaking that out by customer who owes you the money And because you search for this internally then usually the reports that are going to be more common are going to be the aging reports That give you that added feature of the time the periods of how outstanding the items are Okay, let's go back to the first tab and just change to the business view with the cog to the business view Just to see where things are located under it so we've gone into of course the reports That's under the get paid and paid area and we've been under the customer side we looked at the invoices And I'm sorry the reports that's not the reports the reports are in the business overview and then the reports So that's where the reports are located and then we went into the customer area and that's under the get paid and paid tab And then under the get paid we have the customers and we have the invoices and then those sales transactions are in a different area They're in the bookkeeping area under transactions and then you've got your tabs up top and you've got your sales transactions So you can sort by your open invoices here