Which report can help you track overdue invoices?

The Accounts Receivable Aging Report is specifically designed to help businesses track overdue invoices. This report categorizes outstanding customer invoices based on how long they have been unpaid, typically grouping them into time frames such as 0-30 days, 31-60 days, and so on. This organization provides a clear visualization of overdue accounts, allowing business owners to identify customers who may need reminders or follow-ups for payments.

This report is essential for managing cash flow, as it directly reflects the amounts that are owed to the business and helps prioritize collection efforts. By focusing on overdue invoices, companies can improve their receivables management, enhance cash flow, and maintain more amicable customer relationships through timely follow-ups. This functionality is crucial for ensuring financial health and operational efficiency.

The other reports, while valuable in their respective areas, do not serve the specific purpose of tracking overdue invoices. The Profit and Loss Report summarizes income and expenses, the Cash Flow Projection Report estimates future cash inflows and outflows, and the Sales Tax Liability Report focuses on sales tax collected and owed to tax authorities. Thus, they do not provide the detailed insight into overdue invoices that the Accounts Receivable Aging Report does.