Definition: A customer balance list details the customers that owe or will soon owe your firm payment.
The customer balance list reports the customers who owe your firm payment, how much they owe, and how long it has been since they were sent an invoice for payment. This report helps you to learn how quickly your customers historically make their payments.
The customer balance list can be very important information for you as a business owner to have, but it is useful to others as well.
For example, your firm’s bank manager may want to review your customer balance list if you have applied for (or are applying for) a loan. If you have a high total amount due in the ’ >30 days’ column, for example, this could show that your customers (debtors) are not paying you in an appropriate manner.
In e-conomic, you can run your customer balance list in the report section. The first three columns of this report show the customer number, the name and the customer group of the customer that owes payment.
Note: In e-conomic, the customer balance list is called the aged debtor report.
The ’Not yet due’ column shows what a customer owes from the current month (which they have just been invoiced for). This means that they have not had to send payment yet according to the time length outlined in the payment terms. The columns that say ’0-15 days’, ’16-30 days’, and ’>30 days’ describe the length of time since the due date of a payment. Numbers in these columns are amounts that are past due.
‘Balance’ tells you how much the customer owes you to date.