Accounts Payable and Receivable Template in Excel for Aging Analysis

Accounts Payables and Accounts Receivables are two of the fundamental components of any balance sheet. Accounts Receivable typically shows how much of your total sales are made through credit. On the contrary, Accounts Payable indicates how much of your total purchases are made through credit. Accounts Receivable and Accounts Payable were likely similar in nature. Accounts receivable relates to sales transaction whereas accounts payable pertains to vendors transaction. For companies with a bunch of transactions, these two accounts shall have a separate schedule to track what goes in and what goes out quickly.

What is Aging Analysis?

An accounts receivable and accounts payable aging represents the relationship of unpaid invoices to its corresponding due dates. The aging schedule is broken down into age categories and outlines the invoices that are less than 30, 60, or 90 days old. This information helps determine the cash flow forecast, which allows you to plan your spending accordingly, thus protecting you from unnecessary cash flow issues.

Aging Analysis is mostly vital for accounts receivable as it will help you easily identify unpaid customers. If your aging analysis provides several customers beyond 60 or 90 days, you may take the necessary steps to boost your collection procedure. Moreover, if your aging analysis shows a single customer with a lot of unpaid overdue invoices, you may immediately contact your client to ensure prompt collection. It would also help you evaluate whether you need to stop selling or servicing for a delinquent customer. On the other hand, your aging analysis will also help you evaluate your payment terms with your suppliers and change your game plan should the situation get worse.

Elements of Accounts Payable and Accounts Receivable Aging Template

An accounts payable and accounts receivable template in excel should essentially provide details of customer or vendor account and aging analysis. Details of both accounts should include the following:

•    Customer/Vendor Name 
•    Invoice or Transaction Number
•    Invoice Date   
•    Invoice Amount
•    Payment Terms
•    Amount Received
•    Due Date
•    Date Received
•    Outstanding Balance
•    Days Due

Why using an Accounts Payable and Accounts Receivable Template in Excel?

Creating a new document from scratch is frustrating and could waste your time and money. If there are templates already available, then it’s best to utilize it and focus on your purpose. An Accounts Payable and Accounts Receivable Templatein Excel will not only ease your job and increase your efficiency but also save you from hours of frustrations. Utilizing a preset template is less expensive than re-inventing your own and definitely save your time than creating one from scratch. Most importantly, a ready-made template provides for consistency and clarity, as this will be used in making crucial business decisions.

Conclusion: It’s always best to use ready-made templates

Investing in a ready-made template is cost-effective and a win-win solution for everyone as users tends to adapt to qualitative and extensive information quickly. Because accounts payable and accounts receivable template in excel are fairly critical for business decisions, it’s always a great choice to use a comprehensive template that goes beyond your ordinary screen, providing you with a structure to solve a specific problem (avoid aging) and stay on top of paying suppliers in time and making sure your invoices get paid.

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