Customer Role in Business
We use many terminologies for a customer such as a shopper, buyer, purchaser, client, consumer and more. A customer is the player in the business who injects money in business through buying products rather than rolling loans and increase liability. The customer can either be a person or an entity who pays money to buy goods. A customer database empowers business to increase sale through marketing by using customer database.
The most important feature to understand in accounting is understanding connection with different reports to produce an accurate financial report.
What is generally included in customer database?
- Email address
- Contact person name
- Company name
- Telephone Number
- And complete mailing address.
Features of the Customer Aging Report:
Customer aging report is crucial to analyze:
Customer Pending Payments
The customer aging report provides data of pending payment to be received from customers to follow up. Leaving longer debts may become a cause of the default.
Customer Data Verification
The customer aging report provides an opportunity to verify if the bookkeeper has posted payments correctly.
Customer Payment Trend
The customer debt facility is increased or decreased based on the timely payments and the customer aging report has a feature to provide the details to action accordingly.
Customer Overpayments
Any overpayment received by the customer must be returned as soon as possible and customer aging report has a feature to reconcile if there is any overpayment is to be returned.
