 QuickBooks Online 2024. Accounts receivable aging reports. Get ready and some trail mix because we're hiking on QuickBooks Online, our audit trail to success. Here we are online in our browser looking for QuickBooks Online test drives, choosing the result that has Intuit.com and the URL Intuit being the owner of QuickBooks, selecting the United States version of the software and verifying that we're not a robot. Opening up our major financial statement reports, like we do every time, reports on the left hand side and the favorites. We're going to be right clicking on the balance sheet, open link in new tab, right click on the profit and loss, open link in new tab. Let's go to that middle tab, close up the hamburger and do a range change, bringing it back to 2023, 010123 tab, 123123 tab, run it to refresh it. We'll go to the tab, to the right, close up the hamburger. First, a word from our sponsor. Yeah, actually we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us. But, but that's okay, whatever, because our merchandise is better than their stupid stuff anyways. Like our, trust me, I'm an accountant product line. Yeah, it's paramount that you let people know that you're an accountant because apparently we're among the only ones equipped with the number crunching skills to answer society's current deep complex and nuanced questions. And change the range once again, 010123 tab, 123123 tab. That's the setup process that we do every time. These are the two major financial statement reports, the balance sheet, the income statement, otherwise known as the profit and loss. We're now looking at other reports, most other reports giving more information about one or multiple line items on one of these two major financial statement reports. This time we're looking basically at the balance sheet line item of accounts receivable. And the accounts receivable account is special in that it's tied to the customer. So this represents money that is owed to us. If I drill down on it, we do get a more detailed report, the transaction detail, basically a general ledger. But this is just giving us the information by date. We also need the information by who owes us the money because we want to be collecting on it. So let's go back and see that report. We're going to go back to the first tab here into our reports on the left hand side and scroll down to the section of who owes you money. These are the reports specifically kind of designed around the accounts receivable. We took a brief look at some of them in a prior presentation in the reports overview section. We got the accounts receivable aging detail, the accounts receivable aging summary. Those are the main two reports that would probably that would be used to be tracking the accounts receivable in addition to tracking the receivables internally in what I would call the customer center. And then we've got the collections report. We've got the customer balance detail. This would be the most classic or basic type of subsidiary report structure in a detailed format versus the summary format. And then we could have the invoices which are basically the open invoices, which you would still think would be the balance that is outstanding invoices and receipts. Those are going to give us more detail about the two forms that are increasing and decreasing accounts receivable. The open invoices, invoices increase the receivables if they have not been paid, then that would be tying in to the receivable. And then statement list terms, unbilled charges. These two have to do with charges that we have made that we want to charge the customer for in the form of time that has been entered and expenses that we need to make an invoice for. So let's look at the most basic report first. Let's look at the customer balance summary. So I'm going to right click on it and open link in a new tab. And if we check this one out, I'm going to close up the hamburger and let's say let's go to the date range up top and say we want a custom range as of 123123. Now notice that this is a balance sheet report that is still reporting as of a point in time. And this one only has that one date field to do an entry into because it's only that one point in time. And you can see here, it just gives us our customers and the amount that they owe us. And if I go to the bottom of this report, we're at the 528152. That amount should tie out to what's on the balance sheet. If I go to the balance sheet over here, we're at the 528152. So that's just the most standard basic kind of subsidiary report giving us more information, which should tie out to the parent account. In this case, on the balance sheet accounts receivable. However, you probably don't use this report as much because you're going to track the stuff that people owe you internally. So if I go to the first tab, and I go to my reports, I'm sorry, if I go to my sales area, and then I go into the all sales, then in here, we can sort our overdue invoices and our open invoices and so on. So we have our invoices here, I'm going to close this back out. And if I go into, if I've got my invoices, it even gives us like a total down below. But this total, you might, the total is really what you might want the subsidiary report for. And then we have the invoices tab over here, where I can do a similar process, we have the overdue, we've got the not do. And I can also look at it this way with the status. These are the unpaid invoices. And if I scroll down, doesn't give us the total on this report. But when we're tracking them internally, this is where we might go. And then, of course, we have the customer tab, which we're where we can also track them. And we might sort it by 20 open invoices here. And now we can see, you know, the open invoices. So, so that's why this report is the classic sub ledger, but we might not use it as much because we're kind of looking at those internal tools to help collect on the reports. But it's important to note that this number should tie out to the balance sheet number here. Okay, and it pretty much always will, by the way, because when we do a journal entry into accounts receivable, QuickBooks forces us to add a customer so that it can create the sub ledger and so that the sub ledger doesn't get thrown off, which is has its pros and cons, but it's actually pretty nice. Let's go into the the reports again, close up the handbook and go down to that was the customer balance summary. Let's go into the customer balance detail, right click and open that report in a new link. It's going to be on the right hand side. Let's do a range change up top. I'm going to do a custom range 1231 23. Actually a custom point in time. And then we have our detail. So now we have the same information, but it's giving us the detail of the invoices. Now basically we have open invoices, because those are the things that are outstanding that's creating the the amount that is that is due at this point in time. So again, a lot of this stuff, however, you might then simply go to the internal reports to use so you might not use this one quite as much. So so then we've got the customer balance summary. We did that. Here's the invoice list. If I right click and open up the invoice list and go into that one, close this up. So now we have our sorting of the invoices. I'm going to switch it to the classic view. So I can see my date range up top going from 010123 to 1231 23. And then I'm going to run it. So now you've got your list of invoices. So that's nice, but you might not need this quite as much because again, you can use the internal report. And if you wanted to filter, I could go into my my balance sheet here, for example, and go into my accounts receivable. And I have my transaction detail within here. And if I want to sort by transaction type, I could do that using my filtering options and add a filter. And I want to sort by transaction type, making it equal to and then an invoice, invoice, and then boom, and filter it. So I can get a similar, you know, report thusly as well. So so there's just to show you that I'm going to go back on over exit. And then we've got invoices and receive payment. So this is both the increases and decreases. If I open that link in a new tab, let's check it out. So we have this here, let's change the range. 0101231231, hold on, still thinking 123123. And there's that report. So I'll close that up. So this gives us the increases and decreases. This is kind of nice. Because now it's given us the you would think that you can change the detail report to show both the increases and decreases, not just the open invoices. But this report gives you that more detail because I'd like to see if I was looking at the detail report, not just the outstanding invoices, but possibly being able to tick off the payment and the invoice so you can see them kind of matched out. So that's might be a actually a more useful report in some way so that you can see those tied out, although you might check that information internally, as well on a per client or per customer basis. Let's go back to the first tab. We've got the open invoices. If I right click and open that one and check it out, we're going to say, okay, this is going to be let's make it as of 123123 tab, run it. So this looks similar to another to the other report where we have the detail of the accounts receivable because it's given us information by customer and then the open invoices for the customer, meaning the invoices that have been entered and not yet paid, which will result in the increase in accounts receivable 5281452. You would think would be the same number here on the balance sheet. So there's that one statement list and then just these unbilled items just to show you what those mean. If I go into the unbilled items, we can see that in here, we have time charge charges that have happened, meaning we've we've entered time into the system that we plan on pulling over into the invoice, but we have not yet pulled them over into the invoice. Therefore, this report doesn't actually reflect anything on the balance sheet or income statement, but rather is something that we need to do in the future. It's telling us, hey, if you create something for Amy's bird sanctuary, if I go over here and I say boom and make like an invoice for Amy's bird sanctuary, Amy's bird sanctuary, then it's good. I could pull this billable time in because I've entered it, but I haven't yet invoiced it. That's the idea. So I'm going to close that out. Yes. And then we go to the two main reports. First would be the accounts receivable aging summary. Right click and open this one. The reason this one I would say is the main report that we would use is because most of the other reports we already have a lot of that detail internally and what I would call the customer cycle or customer center. Over here, we have something added to that 123123. And that is that we have the past due columns up top. So this is the general format and we have the current amounts and we have still our customers on the left hand side. We have the amounts that have not yet been collected, which are current, which we're not too worried about at this point in time. And then the ones that are one to 30 days past due 31 to 60 past due 61 to 90 past due and 91 and over past due and then our totals. So this report still gives us the total which ties into what's on the balance sheet, but it breaks it out by how much is past due, which is important because that will tell us which clients and customers that were skeptical about whether we're going to get paid. And that's going to tell us whether or not we want to do business with them, sell them anything further in the future. This is also the primary report used when we're trying to think about the likelihood of us collecting on the receivables. So whenever we make sales on receivables, we're running a risk that they don't actually pay the money because we already did the work. So if you're working with dishonest people or something like that, then it's likely that you're going to have some portion of your receivables that you're never going to basically collect on. So this can help you to estimate what that is, the portion you're not going to collect on. And at some point, if you have a lot in over 90 days that are uncollected, you have to cut your losses and let it go and possibly write it off if you're using a direct method or an indirect, but it's a different write off method. If you're using an allowance method of recording accounts receivable, the concept there, which usually happens for larger businesses because it's a little bit more difficult to deal with, but the concept is if I recorded revenue based on a sale and I know that some of those revenue items are not going to be collected because just of past history, if I know like 10% of my revenue isn't going to be collected, the revenue on account, the revenue that I sold with accounts receivable, I'm not going to collect on it. Well, then the sale didn't really happen kind of, right? So what I should be doing is recording the expense, bad debt expense in the same point in time that I made the revenue sale if I could, but I can't really do that because I don't know how much revenue or how many, I don't know who's not going to pay. I just have a pretty good idea based on past history that some people will not pay like 10%, let's say, or whatever based on our calculations, based on the calculations from this report. And so what we're going to do then is say that is write it off already and then create an allowance account under the accounts receivable for the amount of accounts receivable we don't expect to collect on. And that makes the balance sheet look more clean or be more fair or proper, because instead of having $5,281.52 as an asset, it should really be that amount minus the amount that we pretty sure we're not going to collect on, even though we don't know who the deadbeats are yet, right, that aren't going to pay. So so and then when we then when we write it off, we write it off to the so that's the allowance methods, you might use this report for that as well. We have a course on accounts receivable and allowance method if that's an interesting topic you want to dig into in more detail. A lot of small businesses might not do it that way because of course, it's tedious to do but you can see why for external reporting purposes, it would be a useful tool and it's generally accepted accounting principles typically okay. So then if we go into Oh, by the way, if I go back on over here, you have some formatting options. So you've got your active cells. You got the aging report dates, you can change the days per aging period if you wanted to. But this is pretty standard. So like this is usually standardized to some degree. But if you're using this for the calculation of allowance for doubtful account or something like that, you might want different periods that might help you for your calculations and you can change those up top. Alright, let's go back on over. We have the last one we'll look at the accounts receivable aging detail right clicking, opening that one up and we'll check it out. So I'm going to change the date up top. This is going to be 123123, run it to refresh it. So there we have it. So now instead of having the columns up top, the times pass due because we want to see the invoices detail, we have the drop down here. So now we've got the drop down here for the 30 to 60 days. And then it gives us the specific invoices and you can see the different customers within it. And then we've got the one to 30. Again, here's your categories. I'm sorry, 31 to 60. This is 31 to 60. This is the one to 30. And then the current is on the bottom of this one. So more detailed report. So you might use these in conjunction with each other. You might look at this report and then think about, okay, let me look at these specific invoices that are in this category or like these overdue categories, where's that $85 that specific invoice, if there were multiple items in there, it might be a little difficult to drill down on there to go over here and find it here. You can drill down on it here. You could also drill down on it here. Right. And that's going to give you your detail as well, which you can further drill down on within here. Right. So that's the general and that takes you to the invoice. So that's the general idea of the aging reports accounts receivable for a larger business is going to be has could have a whole department trying to collect on those trying to collect on those accounts receivable get the allowance accounts reported properly and making sure everything's nice and clean in that account as well as the sub ledgers and all the customers are as happy as they can be while hopefully paying us what they owe us.