This report shows the top 5 companies that are past due on paying their invoices. This report is summarized by company, so they may have one or more invoices that make up the total past due amount.
WHY IS THIS IMPORTANT?
Accounts Receivable needs to be watched closely, especially if your business is growing quickly. Otherwise, you may be profitable (or not), but may not have the “working capital” (i.e. cash) to fund things like hardware product purchases, payroll, or other expenses. It’s not that you don’t (technically) have the money, the problem is that you are OWED the money and you don’t have it YET. New accounts should also be watched carefully on their first few bills to make sure that the invoices are being sent to the right contact, and that the client understands your expectations for timing of payment.
Days Past Due – Since each line represents ONE company, but may represent MORE THAN ONE invoice, the days past due of the oldest invoice is shown on this line.
Company – Company name.
Inv $ – Invoice amount on the past due invoices.
Invoice Number – Invoice number of the past due invoices.
Invoice Date – Invoice date of the past due invoices.