Customer records
What to capture on a customer, how terms drive aging, and using credit limits and statements before a balance becomes a collections problem.
How-toFor Bookkeepers, Business owners, Firm staff
What belongs on the record
- Legal name and billing contactRequired
- The entity that owes you, and the person who processes payment. These are frequently not the same, and invoices sent to the wrong one are the most common cause of slow payment.
- Payment termsRequired
- Drives the due date and therefore every aging report. Net 30 by default is a decision, not a law — set what you actually agreed.
- Billing emailRecommended
- Many customers have an accounts-payable inbox that is not the person you deal with day to day. Ask for it explicitly.
- Credit limitOptional
- Worth setting for any customer whose failure to pay would hurt. A limit you notice before shipping is worth more than a collections process afterwards.
- Tax statusConditional
- If they are exempt, record the exemption and keep the certificate. Sales tax you failed to charge is a liability you may have to pay yourself.
Keeping the list usable
- Merge duplicates promptly — split history makes a customer look like a better payer than they are.
- Archive customers you no longer serve; history stays attached.
- Record the purchase-order requirement if they have one. An invoice without a required PO number will not be paid, and nobody will tell you.
- Note who has authority to approve work. Disputes are usually about authorization rather than about the amount.
Common questions
Yes — the customer record shows invoices, payments, credit memos, and the running balance, so a collections call can be made from one screen.
Keep separate records and keep the balances gross. Netting them hides both the receivable and the payable, and if either party disputes, you will want the two histories separate.
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