In a service business, a receivable appears with every invoice that has a payment term. It grows when:
Accounts receivable is the sum of the open balances on every invoice that has been sent and not yet paid in full. If a client paid part of an invoice, only the remainder counts.
For example, you sent a client an invoice for $8,660 and they paid $5,000 on time. That client’s receivable is $3,660, and that is the amount to follow up.
One total does not show how serious the position is, so receivables are grouped by how far past the due date they are. These groups are common practice and describe what to do; they are not a description of a PLYNTUM feature.
| Group | What it means | What to do |
|---|---|---|
| Not yet due | The payment term has not run out | Check that the invoice is with the person who pays it |
| 1–30 days overdue | The due date has just passed | A short, polite reminder |
| 31–60 days overdue | The payment is stuck | A second reminder with a statement of open invoices, and a call |
| More than 60 days overdue | The money is at risk | A final notice and a decision on whether to continue the work |
All three letters are in the payment reminder letter templates.
One more figure per client helps: how many days they take to pay on average. Count the days from issue to payment on the last few invoices and average them. If a client with 14-day terms pays in 40 days on average, put 40 days in your cash flow plan, not 14. The 13-week cash flow forecast template is built for that plan.
"},{"heading":"How to keep accounts receivable under control","html":"Receivables shrink when invoices go out on time, payment terms are agreed in advance and open invoices are reviewed on a fixed rhythm.
In PLYNTUM, accounts receivable is called receivables, and it is on every plan. You write each invoice on the client it belongs to, in GEL, USD or EUR, or, from Core, draft it from approved time. When the money reaches your bank, you record the payment by hand against the same invoice, partial payments included.
Receivables show which invoices are unpaid and for how long. The payments view shows, per client, what has been collected and what is outstanding, with each invoice’s status, due date and paid date. Reports also show receivables by age.
From Core, the 13-week cash flow overview shows expected receipts and planned payments together, so you can see in which week an unpaid invoice leaves you short of cash. Only people whose role allows it see financial records.
PLYNTUM does not collect payments online: there is no card payment or payment link for clients. It does not send reminders automatically either; you write and send them yourself.
PLYNTUM is not accounting software. Your accountant keeps the statutory ledger and reporting in their own system; PLYNTUM shows the operational picture: which client has which invoice unpaid, and for how long. Invoices and payments go to the accountant as a CSV export; there is no integration with RS.ge or accounting software today.
See also finance and expenses in PLYNTUM, invoice software, unbilled work and all terms in the glossary.
"},{"heading":"Related pages","html":""}]},"keyFacts":[["What it is","Money clients owe on invoices already sent and not yet paid in full"],["Name in PLYNTUM","Receivables, in Finance"],["Plan","Receivables and receivables ageing on every plan; 13-week cash flow overview from Core"],["Price from","$55 a month per workspace with 5 members (Launch); 7-day trial, no card"],["Limits","Payments recorded by hand; no online payment collection or automatic reminders; not accounting software"]],"faq":[["What is the difference between accounts receivable and accounts payable?","Accounts receivable is money others owe you. Accounts payable is the reverse: what you owe others, such as a freelancer, a supplier or the office rent. The first is expected cash in, the second expected cash out, so a cash flow plan needs both side by side."],["Is accounts receivable the same as unbilled work?","No. A receivable has an invoice: the client knows how much to pay and by when. Unbilled work never reaches an invoice at all. You remind the client about the first; for the second you first have to decide whether to put it on an invoice."],["When does a receivable become overdue?","From the day after the payment date on the invoice. That is why the due date should be a specific date on the invoice, not words such as “as soon as possible”. Overdue amounts are then grouped into 1–30, 31–60 and more than 60 days, so the oldest invoices are followed up first."],["How can a service business reduce accounts receivable?","Invoice on the day of delivery, agree the advance and payment term in the contract before the work starts, send the invoice to whoever pays it, remind the day after the due date and review open invoices once a week. If your balances and the client’s differ, agree them with a reconciliation statement."],["Does PLYNTUM collect payments from clients?","No. PLYNTUM has no online payment collection: there is no card payment or payment link for clients. The money arrives in your bank account and you record the payment by hand against the invoice, partial payments included. From Core, clients see their invoices and balance in the client portal."],["Does PLYNTUM replace accounting for receivables?","No. PLYNTUM shows which invoices are unpaid and for how long, but bookkeeping, tax returns and RS.ge stay with your accountant and your accounting software. You hand invoices and payments to the accountant as a CSV export; there is no RS.ge or accounting integration today."]]}