An invoice sent to a client for project work done and with an amount due is a receivable. Slow receivables reduce profits, funds available for needed or desirable capital expenditures and resource improvements, and increase the cost of doing business. Thus, it is important to manage receivables and track individual invoices for timely collections. In addition, it is a good practice to include a ‘Stop Work’ clause in your contracts to safeguard your interests. Projects will be profitable only if the client pays you on time for the work done.
Web Suite contains many tools to help you track and analyze receivables and work-in-progress with reports, billing-related memos, journals and collections conversations. Client investment is a good indicator of your accounts receivable.
Client Investment = Unpaid Invoices + Work-in-Progress – Retainer
When the client investment is too high, you need to remind the client for payments. You can obtain this information from the Investment Summary (WIP + A/R) or A/R Reconciliation reports.
The aging reports in Web Suite include client sections that list aged project invoices. Client contact details and the project manager display prominently. You can print aging reports using one or more filters:
If you need an aging summary, such formats are also available. You can drill-down to the details while previewing the report. In addition, you can identify payment deficiencies and other receivable information from other A/R reports such as Client Snapshot with AR Aging, Billings Summary by Month, Cash Receipts, Statements, Collections, etc.
A companion report, Gross Margin, can influence decisions about which past due accounts to pursue first. The report lists gross margin percentage by invoice.