Customer credit limit and exposure monitor

What the customer credit limit and exposure monitor does

Selling on credit is a risk you should measure. For each customer enter the credit limit, the balance owed and the overdue amount, and the monitor works out the available credit, the share of the limit used and a status of OK, near limit or over limit, with your total exposure at the top, so you know whom to stop supplying and whom to chase.

Who it is for

Owners, credit controllers and finance officers who sell on credit and want to limit bad debts.

How to use the workbook

1. List each credit customer with the limit you have agreed.
2. Update the balance owed and the overdue amount weekly.
3. Read the available credit and the status.
4. Stop or review credit for customers over their limit.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Limit, balance and overdue amount for each customer
• Available credit and share of limit used
• OK, near limit or over limit status
• Total exposure and count over limit at the top
• Summary by status with a chart

The workbook has these sheets: Instructions, Customers, By status. The main table has the columns Customer; Credit limit; Balance owed; Overdue; Available credit; Share of limit used; Status. 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

• Review each limit at least once a year.
• Do not exceed a limit without written approval.
• Chase overdue amounts before extending more credit.
• Insure or secure the largest exposures.

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. Free calculators that go with it: Vat calculator. 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

• Free calculator: VAT Calculator
• Guide: How to set up an M-Pesa till or Paybill for your business and account for it
• Guide: How KRA uses data matching and what it means for you
• Guide: How to protect your business from fraud and theft
• Another template: 13-week cash flow forecast
• Another template: Accounts receivable ledger (up to 1,000 invoices)
• Another template: Bank balance tracker

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