Credit control and bad debt tracker

What the credit control and bad debt tracker does

Late payers cost more the longer they are left. List each unpaid invoice with its due date and balance, and the workbook works out the days overdue, the age band, the next action to take and a provision for doubtful debts using the percentages you set, with totals so you know what you may have to write off.

Who it is for

Finance managers, credit controllers and owners who sell on credit and want a firm routine for chasing, and accountants who calculate the allowance for bad debts.

How to use the workbook

1. Set your provision percentages on the Rates sheet.
2. Enter the as-at date and each invoice with its due date, amount and amount paid.
3. Read the age band, next action and provision for each invoice.
4. Work the list from the oldest down and record the notes.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Days overdue and age bands
• A next action for each band
• Provision for doubtful debts by age
• Total owed and total provision
• Percentages you can change

The workbook has these sheets: Instructions, Debtors, Summary, Rates. The main table has the columns Customer; Invoice no.; Invoice date; Due date; Amount; Paid; Balance; Days overdue. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Call as well as email; people pay people.
• Stop supplying customers who are far behind.
• Write off a debt only when you have a reason and a record of trying.
• Check how bad debts are treated for tax before you claim.

Why keep this record

Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.

Read how to keep business records for KRA for the wider picture. See more accounting templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Guide: How to keep business records for KRA: what to save and for how long
• Guide: Bank reconciliation step by step: match your books to your bank
• Guide: Fixed assets and capital allowances explained for small businesses
• Another template: Balance sheet template
• Another template: Bank reconciliation statement
• Another template: Chart of accounts and general ledger

Need something different? Request a custom template, browse all guides or see every Excel template.