Outstanding Balances

Outstanding Balances

Outstanding balances in EquiBillBook represent the total amount that customers owe your business for invoices that have been issued but not yet paid. This guide explains how to view, analyze, and manage outstanding customer balances effectively.

What are Outstanding Balances?

Outstanding balances include:

• Unpaid invoices issued to customers
• Partial payments on invoices
• Credit notes that reduce outstanding amounts
• Advance payments that reduce balances
• Adjustments and write-offs
• Amounts past their due dates (overdue)

Understanding Outstanding Balances

Outstanding balances show:

• Total Outstanding: Complete amount owed by all customers
• Current Outstanding: Amounts within payment terms
• Overdue Outstanding: Amounts past due dates
• Customer-wise Balances: Outstanding amount per customer
• Aging of Balances: How long amounts have been outstanding

Accessing Outstanding Balances

To view outstanding balances:

1. Navigate to Customers from the main menu
2. Go to Customer List or Customer Transactions
3. Select "Outstanding Balances" or "Receivables"
4. Or access from Reports → Receivables Reports

Viewing Customer Outstanding Balances

The outstanding balances view displays:

• Customer Name: Customer identifier
• Total Outstanding: Current balance owed
• Current: Amount within payment terms
• 30 Days: Amount outstanding 30 days
• 60 Days: Amount outstanding 60 days
• 90+ Days: Amount outstanding over 90 days
• Last Payment Date: Date of last payment received
• Credit Limit: Maximum credit allowed
• Available Credit: Remaining credit available

Filtering Outstanding Balances

You can filter outstanding balances by:

• Customer: View balance for specific customer
• Customer Category: Filter by customer category
• Balance Range: Filter by outstanding amount range
• Aging Bucket: Filter by age of outstanding (Current, 30, 60, 90+ days)
• Credit Limit: Filter customers near or over credit limit
• Date Range: View balances as of specific date

Understanding Balance Components

1. Total Outstanding

Complete amount owed:

• Sum of all unpaid invoices
• Minus any payments received
• Plus or minus adjustments
• Represents total receivables

2. Current Outstanding

Amounts within payment terms:

• Invoices not yet due
• Invoices due but not past due date
• Healthy receivables

3. Overdue Outstanding

Amounts past due dates:

• Invoices beyond payment terms
• Requires collection attention
• Affects cash flow

Analyzing Outstanding Balances

1. Customer-wise Analysis

Review balances per customer:

• Identify top debtors
• Monitor high-value balances
• Track payment patterns
• Assess credit risk

2. Aging Analysis

Analyze by age of outstanding:

• Current: Not yet due - monitor regularly
• 30 Days: Slightly overdue - follow up
• 60 Days: Overdue - active collection needed
• 90+ Days: Long overdue - urgent collection or write-off consideration

3. Credit Limit Analysis

Monitor credit limit utilization:

• Customers near credit limit
• Customers over credit limit
• Available credit remaining
• Credit risk assessment

Managing Outstanding Balances

1. Collection Management

Strategies for collecting outstanding amounts:

• Send payment reminders
• Generate and send statements
• Follow up on overdue accounts
• Offer payment plans if needed
• Consider collection agencies for long overdue

2. Credit Management

Manage credit exposure:

• Review credit limits regularly
• Adjust limits based on payment history
• Restrict credit for high-risk customers
• Monitor credit utilization

3. Write-offs and Adjustments

Handle uncollectible amounts:

• Write off bad debts
• Adjust for disputes
• Record adjustments properly
• Maintain audit trail

Exporting Outstanding Balances

Export balance information:

• Export to Excel: For detailed analysis
• Export to PDF: For reporting and sharing
• Print Reports: For documentation
• Email Statements: Send to customers

Outstanding Balance Reports

Generate various reports:

• Customer Balance Summary: Total outstanding per customer
• Aging Report: Outstanding by age buckets
• Overdue Report: Only overdue amounts
• Credit Limit Report: Balance vs. credit limit
• Collection Report: Prioritized for collection

Best Practices for Managing Outstanding Balances

• Review outstanding balances regularly (weekly or monthly)
• Monitor aging of receivables
• Follow up promptly on overdue accounts
• Set clear payment terms and communicate them
• Send statements regularly
• Track payment history for credit decisions
• Maintain accurate and up-to-date records
• Document collection efforts

Related Features

Outstanding balances integrate with:

• Customer Statements: Include outstanding balances
• Aging Reports: Detailed aging analysis
• Payment History: Track payment patterns
• Credit Limits: Monitor credit utilization
• Collection Management: Prioritize collection efforts

Need Help?

If you need assistance with outstanding balances:

• Review customer transaction history
• Check payment allocation and matching
• Verify invoice and payment dates
• Review aging reports for details
• Contact support for balance reconciliation help

Effectively managing outstanding balances is crucial for maintaining healthy cash flow and reducing credit risk. Regular monitoring and proactive collection efforts help ensure timely payment and minimize bad debts.