Cash is the lifeline of any organization and collections are an important part of this equation. It is necessary that once the customer has been invoiced that you follow-up on receiving payment. Within the services industry, a delayed payment can happen for a variety of different reasons, but one of the most frequent is due to a disputed charge.
Since a client may be have numerous projects with you at the same time, this is why it is important to be able to review your receivables by project. By having your invoices sorted by activity or project, it becomes easier for you to quickly identify which invoices are still outstanding and then you may be able to more quickly identify the issue.
A Receivables Management report by project becomes even more powerful when you start to combine your WIP Aging report since according to the
I’m not teaching you anything new by saying that billing and collections are a vital part of any service organization, but when you do the calculations, it truly highlights their importance. For example, if it takes you 60 days to bill your customer and then it sits in collections for 90 days, this means that will have taken 5 months to receive payment for previous work done. This means that you have been financing your client’s project for the past 5 months and there is a strong likelihood that you may only be able to collect for 60% of it!
This is just one of the 7 reports that we feel can help you more efficiently manage your project-based business. Download our eBook to learn more about the other reports on our list at