Invoice management system
- Days sales outstanding
- 30
- Average invoice outstanding
- $1,500
- Overdue as a share of outstanding, percent
- 25
Every figure on this page is computed from the inputs entered, by the method stated below it. ReceivableLedger publishes no tax rate, no payment term, no late fee and no benchmark: the defaults are a worked example to replace with your own figures.
An invoice management system, as the phrase is sold, is accounts payable: scanning supplier invoices, routing them for approval, matching them to purchase orders, for a finance team paying bills. The small business that searches for it is usually on the other side of the invoice, and wants the seller's version: every invoice it has issued, its status from issued to part paid to paid, what is outstanding and for how long, and the statement that sums it for the customer. What the seller's invoice management system has to do is small and exact: keep the invoices against the customer, apply the payments, flag what is overdue and read the total. This guide is about that version, and the free invoice tracker on this site reads what is owed with no account.
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Every invoice against the customer, with a status
The system's first fact is the list: each invoice against the customer it was issued to, with what it was for, when it is due, what has been paid against it and its status. Kept as a list rather than a folder, it answers the customer's question and the bookkeeper's in one place. The paid plan keeps it and files the statements beside it.
Outstanding, overdue and the average, read from the list
The total outstanding is the list added up; the overdue share is the part past its due date; the average invoice is the total over the count. The tracker on this site reads all three from your own figures, and the paid plan reads them from the invoices it keeps, so the figure is live rather than reconstructed at month end.
Days sales outstanding, the one number that says how it is going
Receivables over sales on account, times the days in the period, is how many days the money takes to come in on average: 30 on the worked example. Read every period, it says whether collection is getting better or worse before the cash does. The paid plan keeps every period so the trend is a column.
Invoice management system: common questions
What is an invoice management system?
For a finance team, software that scans, approves and pays supplier invoices. For a small business that sells on account, which is who this site is for, the record of every invoice it has issued with its status, the payments against it, what is outstanding and overdue, and the statement that sums it for the customer. ReceivableLedger is the second kind.
How do I track unpaid invoices?
Keep every invoice against the customer with its due date and the payments applied, then read the outstanding total, the overdue share and the days sales outstanding from that list. The free invoice tracker on this site works those three from your figures; ReceivableLedger Pro keeps the list and reads them from it, and sends the reminder when an invoice goes past due.
What is a good days sales outstanding?
Shorter than your payment terms, and shorter than last period; the worked example reads 30 to show the arithmetic and nothing more. A business on 30-day terms whose DSO reads 45 is being paid two weeks late on average. The tracker publishes no benchmark, because the right figure is your own terms.
ReceivableLedger Pro
Keeping what you make
The tools are free forever. Pro turns them into the ledger: every customer's invoices and statements kept and dated, the statement and the reminder sent for you, a pay link on every document, your name and logo on the paperwork, no watermark, and an export when the accountant asks.
- Download as PDF
- No ReceivableLedger watermark
- Save every proforma and statement and reopen it later
- Your business name and logo on the document
- Export every invoice and statement in one go
- Statement-issued and payment-overdue reminders emailed to your customers
- Connect your own Stripe account and get paid online
- Connect your QuickBooks Online or Xero
$50per month, whole office
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Will it do what you need for Invoice management system?
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Cite or embed this figure
On the worked example, 12 invoices outstanding totalling $18,000 average $1,500 each, $4,500 of it is past due, 25% of the outstanding, and $54,000 of sales on account over 90 days puts days sales outstanding at 30.
Invoice tracker (Days sales outstanding): 30, ReceivableLedger, worked example.
Cite as: "Invoice management system, ReceivableLedger", updated 2026-09-03, https://receivableledger.com/invoice-management-system/.