A service business is rarely short of work. It is more often short of cash because dues sit with customers nobody has called. Recording each payment against the invoice it clears, and ageing what is left, turns collection into a routine.
Payment receipts that match invoices
- Mode: cash, UPI, cheque or bank transfer.
- Part payments: an invoice can be partly paid and shows what is still due.
- Allocation to one or more invoices.
- Status and refunds recorded.
- Visible on the customer's record to roles with financial access.
Know what is owed
The receivables ageing report groups unpaid invoices into bands by how overdue they are, so the oldest are chased first. A collections report shows receipts by day, mode or person. Both are in reports.
Cash reconciliation
Where technicians or counters take cash, reconcile it against the day's records. Differences are visible the same day. For a routine that works, read how to calculate AMC charges.
From invoice to cleared
- Invoice raised from a job or contract.
- Payment received and recorded by mode.
- Allocated to the invoice, which shows as paid.
- Leftover dues appear in ageing.
Illustrative example: a lift contractor with quarterly billing
A lift maintenance business bills 120 societies each quarter. The accountant opens ageing on the 10th, finds fourteen invoices over 30 days and assigns the calls. By month end ten are paid and recorded, with the mode noted.
Who it is for
Accountants, office staff and owners. Payments sit beside GST invoices.