23 Nov Ask the Expert – Customer Days to Pay
Ask the Expert – Customer Days to Pay
Q – My business has been growing rapidly and I want to determine whether my customers fit into the A, B or C category. I know that some of the information is outside of QuickBooks (for example, the “hassle factor”) but I believe some of the information is in QuickBooks, such as how timely the customer pays me. I cannot figure out how to get that report. Can you help?
A – This question comes up frequently in several different contexts. One is similar to the question ask here, but it also becomes important when employee performance is based on their collection efforts, the business is entering into contract re-negotiations, as well as basic cash flow planning and budgeting. Unfortunately, QuickBooks does not have a report that can calculate this amount easily.
One solution we developed for a client was to include the invoice number in the memo field for the invoice and the payment. This permitted generating a report that could be sorted by the memo field then, using the Excel button on the report; the aging calculations could be done using formulas in Excel. Not a quick solution, but an effective one.
Late last week we discovered a new add on product available from Karl Irvin, CPA. It is called the Customer Payment Analyzer 2 and is available for $99. It permits analyzing the data by customer, by invoice, or in detail. It is very easy to use (we were able to do it first time without any problems). It does require Microsoft Access, but a free runtime version of Access is available from the developer”s website (click here then scroll down for the link and instructions if you do not have Microsoft Access). To make it easy for you to try, we have spoken with the developer and he has permitted us to offer our subscribers and visitors a free trial version that permits analyzing 10 invoices at a time. Or you can purchase the tool on our site as well…
For the trial: /product.php?productid=415&cat=0
For the full version: /product.php?productid=415&cat=0