How to track customer debts in a small business

Selling on credit builds loyalty, but unrecorded credit quietly drains cash. A simple routine keeps it under control.

1. Write every credit sale down at the time

Record the customer's name, phone number, the amount, the date and what they took. A phone number is what lets you remind them later.

2. Set a due date

Agree when the customer will pay and record it. Without a due date nothing is ever overdue, and you cannot tell which debts need attention first.

3. Record part-payments against the balance

Customers often pay in pieces. Add each payment to the debt so the remaining balance is always accurate, and keep the history of who paid what and when.

4. Review overdue debts weekly

Sort debts by how late they are and start with the largest or oldest. A short, friendly reminder usually works better than a hard conversation weeks later.

5. Do the same for what you owe

Track supplier bills the same way so you know what is coming due and can plan your cash.