Real Estate Businesses Must Use Accounts Receivable Aging Report
For real estate businesses, staying on top of your accounts receivable is essential for maintaining healthy cash flow. Whether your investment strategy is owning rental properties, house flipping, or managing commercial real estate (CRE), tracking outstanding invoices is crucial to keeping your investments profitable. One of the best tools for this is the Accounts Receivable Aging Detail Report in QuickBooks Online.
What Is an Accounts Receivable Aging Report?
An Accounts Receivable Aging Report is a financial report that shows you a breakdown of all unpaid invoices and how long they have been outstanding. This report is especially important for real estate businesses who work with multiple tenants, contractors, or property management clients and need to keep track of who owes them money.
Key Insights from This Report
Outstanding Invoices: A complete list of all unpaid invoices from your tenants, clients, or other customers.
Aging Summary: A breakdown of how far past due each invoice is, categorized by time periods (e.g., 0-30 days, 31-60 days, 61-90 days, and over 90 days).
Customer Payment Trends: Identifying which tenants or clients consistently pay late, allowing you to take proactive measures.
Why This Report Is Critical for Real Estate Businesses
As a real estate investor, you rely on steady cash flow to cover mortgages, property taxes, maintenance costs, and new investments. If you don’t have a clear view of your accounts receivable, you could run into cash flow issues that can stall your growth.
Benefits of Regularly Reviewing Your Accounts Receivable Aging Report
Stay on top of overdue invoices – Ensure timely follow-ups with tenants, clients, or contractors who have outstanding balances.
Improve cash flow management – By knowing exactly when payments are expected, you can plan for expenses and investments accordingly.
Avoid bad debts – The longer an invoice goes unpaid, the harder it becomes to collect. Address past-due amounts early to minimize losses.
Enhance financial decision-making – Having a clear snapshot of incoming cash allows you to make better investment choices and avoid financial strain.
How Often Should Real Estate Businesses Review This Report?
We recommend reviewing your Accounts Receivable Aging Report at least once a week—ideally on Monday mornings. This gives you a clear picture of what payments should be coming in that week and allows you to follow up on any late invoices before they become bigger issues.
Best Practices for Managing Your Accounts Receivable
Set Clear Payment Terms – Ensure all tenants, contractors, and clients understand when payments are due and what penalties apply for late payments.
Automate Invoice Reminders – Use QuickBooks Online to send automatic reminders for upcoming or overdue invoices.
Follow Up Promptly – Contact clients or tenants as soon as an invoice becomes overdue to improve collection rates.
Offer Multiple Payment Options – The easier it is for someone to pay you, the faster you’ll receive your money.
Work with Someone Specialized In Bookkeeping for Real Estate Investors – If managing receivables feels overwhelming, a specialist in real estate bookkeeping can help you stay organized and ensure your finances are in order.
Using QuickBooks Online for Real Estate Bookkeeping
If you’re using QuickBooks Online, running an Accounts Receivable Aging Report is simple:
Navigate to Reports
Search for Accounts Receivable Aging Detail
Customize the report by date range and customer
Review overdue invoices and take action
If you’re not sure how to set up or interpret this report, working with a specialist in bookkeeping for real estate investors can save you time and help you optimize your financial processes.
Need Help with Your Real Estate Bookkeeping?
If you’re a real estate business owner who struggles with tracking invoices, managing cash flow, or making sense of financial reports, we’re here to help. We offer real estate bookkeeping services, designed specifically for you, ensuring you have the financial clarity you need to grow your investments.
Click the link below to schedule a discovery call with us today.
