Understanding Customer and Payment Statuses

When managing your business, it's important to keep track of your customers and their payment statuses. This can help you make informed decisions and effectively manage your finances. In this article, we will discuss the two main types of statuses for customers: Customer Status and Payment Status.

Customer Status is designed to represent what type of customer the entry is. This can include options such as Active, Previous, Prospective, or Undesirable. By understanding the different customer statuses, you can easily identify and categorize your customers.

For example, if a customer is marked as "Active," this means they are currently using your services or purchasing your products. On the other hand, a customer marked as "Prospective" might be someone who's never rented from you, but you want to add to the system. By keeping track of these statuses, you can make informed decisions about how to interact with each type of customer.

Payment Status is crucial for managing your business finances. This status indicates whether a customer is current on their payments or how overdue their balance is. By knowing this information, you can take appropriate actions to ensure timely payments and maintain a healthy cash flow.

For example, if a customer is marked as "Current," this means they have paid their balance in full and are up-to-date on their payments. However, a customer marked as "31-60", for example, may have missed a payment or has an outstanding balance that is overdue by 31-60 days. By keeping track of payment statuses, you can stay on top of your finances and take necessary actions to ensure timely payments.