I rely on accounting software every day to keep tabs on cashflow, and one thing I see time and again is that the earlier you spot slow payers, the easier (and cheaper) it is to fix the problem. QuickBooks is a common choice, but the principles below apply to Xero, Sage and other cloud packages. I’ll show you which reports to use, how to configure them, what indicators to watch for and simple processes you can put in place so late payments are caught — and acted on — well before they become a cashflow headache.
Why reports are your early-warning system
Invoices don’t pay themselves. But your accounting system can act like a smoke alarm: pull the right reports and you’ll see the first signs of trouble — customers consistently paying at 45 days instead of 30, invoices approved but not sent, or particular departments with a poor payment record. The aim is to turn data into action: spot patterns, prioritise who to chase, and automate low-effort follow-up where possible.
Key reports to run (and how to customise them)
- Accounts Receivable / Aged Receivables — This is the classic. Run it with breakdowns by customer and by ageing bucket (0-30, 31-60, 61-90, 90+ days). Sort by balance to focus on big exposures first.
- Sales by Customer — Useful to spot concentration risk (e.g. 30% of revenue owed by two clients). Filter to show only unpaid invoices for a given period.
- Customer Activity (Open Invoices) — Shows what’s outstanding invoice by invoice, helpful for building chase lists.
- Invoice History / Payment History — Look for trends in payment timing per customer. A client who paid in 10 days for years, then suddenly slips to 60 days, is a red flag.
- Accounts Receivable Ageing Detail with Contact — If your software supports it, include customer contact name and phone/email to speed up outreach.
- Receipts and Bank Deposits — Reconcile payments quickly and spot unapplied credits that may hide delayed payments.
How I set up reports for quick triage
When time is tight, I use a small set of customisations so the most important facts are visible at a glance:
- Sort aged receivables by balance (largest first) — chase the big sums that affect cashflow, not the tiny invoices that cost more to chase than they’re worth.
- Show number of days overdue — a single column that saves switching between reports.
- Filter to “top 20 customers” or “customers with >30 days overdue” — this creates a manageable action list.
- Include last payment date — helps you identify dormant accounts or those that recently stopped paying on time.
Practical thresholds and KPIs to monitor
Decide measurable thresholds so you and your team know when to act. Here are practical examples I recommend:
- Days Sales Outstanding (DSO) — track monthly. If DSO rises more than 10% vs previous quarter, investigate.
- Invoices >30 days overdue — trigger internal chase email.
- Invoices >60 days overdue or >£1,000 — escalate to a phone call from an experienced handler.
- Customers with repeated late payments (3+ times in 6 months) — consider adjusting terms or requiring payment upfront.
Automating reports and alerts
Most cloud systems let you schedule reports to be emailed to you or the person responsible for credit control. Set up:
- Weekly aged receivables report emailed to the business owner and the accounts contact.
- Daily list of invoices due within the next 7 days — this helps prep reminder emails before something becomes overdue.
- Custom alerts for when a single customer’s outstanding balance exceeds a threshold.
If you use QuickBooks Online, use the “Scheduled Reports” feature. In Xero, use the “Repeating Reminders” or third-party tools (e.g. Chaser, Satago) that integrate and add automated chase sequences with branding and tone control.
Turning report insight into action: a simple chase workflow
Here’s a pragmatic workflow I use with clients. It’s simple enough for a one-person business but scalable for small teams:
- Day 25 after invoice date — run “Invoices due in next 7 days” report. Send a friendly reminder email (automated where possible).
- Day 31 — run aged receivables, filter >30 days. Send first chase email with invoice copy and payment options.
- Day 45 — call the client (or ask an experienced colleague to call) and record notes against the customer record. Consider offering a short payment plan if cashflow is the issue.
- Day 60 — escalate to a stronger letter or internal credit hold. Review terms for future invoices (e.g. require deposit).
Templates and message guidance
Use simple, professional language. I keep three templates saved in QuickBooks or an external document:
- Friendly reminder — polite, assumes oversight: “Just a quick note to let you know invoice #123 is due on [date]. Please let me know if you need another copy.”
- Firm chase — assumes awareness: “Invoice #123 remains outstanding at [amount]. Please can you confirm payment date by [date]?”
- Escalation / final notice — sets consequences: “If payment isn’t received by [date], we will suspend services and refer the matter to collections.”
Using a table to visualise ageing buckets (example)
| Ageing bucket | Priority | Action |
|---|---|---|
| 0–30 days | Low | Automated reminder one week before due |
| 31–60 days | Medium | Manual chase email, phone call if balance >£500 |
| 61–90 days | High | Escalate to senior, consider stopping services |
| 90+ days | Critical | Final notice, debt collection/legal review |
Common pitfalls and how to avoid them
- Ignoring the data — a report saved in a folder does nothing. Schedule it and assign responsibility for weekly review.
- Chasing the wrong invoices — always sort by balance and risk, not just age. A tiny old invoice can distract from a large, new overdue.
- No ownership — name a single person for chasing. Even a small business benefits from a clear owner for credit control.
- Missed reconciliations — unreconciled payments can make invoices look outstanding. Reconcile bank feeds daily if you can, or at least weekly.
Reports are only valuable when they change behaviour. Get into the habit of looking at aged receivables, setting clear thresholds and automating where possible. That combination — consistent reporting plus a small, predictable chase process — will reduce overdue balances and protect your cashflow without creating extra admin.
