How do I track money owed to my business?

Set up the list:

1. Record each invoice the day you send it, with its due date.
2. Change it to paid only when the money reaches your account.
3. Note partial payments and what is still owed.

Watch three numbers: total owed, the amount more than 30 days late, and which clients pay late most often.

Collect on a schedule. A reminder at the due date, a call at 30 days and a firmer notice at 60 days is a common pattern. The SBA's finance guide lists accounts receivable among the jobs someone in the business must manage.

Tax points for cash-method businesses:

• An unpaid invoice is not yet income.
• A valid check received by year end counts as received, even if you deposit it in January.
• You cannot take a bad debt deduction for an amount you never received and never included in income.

In a ProfitDrawer spreadsheet, the Unpaid Invoices tab lists up to 40 unpaid invoices and the Top Clients tab shows amounts still owed per client. It tracks invoices; it does not create them. General information, not tax advice.