5 Essential Ways to Track Who Owes You in QuickBooks Online for Your Physical Therapy Practice

If you micromanage one thing in QuickBooks Online, let it be your accounts receivable.

As a dedicated physical therapist and practice owner, staying on top of your accounts receivable in QuickBooks Online can make a significant difference in your practice’s financial health. Your Dashboard provides a snapshot of your finances, but there’s one task that should always be a priority: monitoring who owes you.

QuickBooks Online offers various tools to keep your receivables in check, ensuring you’re compensated for your services and helping you manage your cash flow effectively. This is crucial for practice owners who balance patient care with the complexities of running a successful business.

Use the Dashboard to Monitor Income

Your Dashboard in QuickBooks Online is your financial command center. Focus on the Income widget to get a quick glance at your open and overdue invoices. This tool is vital for practice owners who need to keep track of incoming payments without getting bogged down in the details. Customizing your Dashboard layout can help you keep the most important information front and center, making it easier to manage your receivables at a glance.

QuickBooks Online’s Dashboard consists of three elements, accessible by clicking tabs. Home is just what it sounds like. It’s a home base for the most important numbers in your company file. We’d like you to pay special attention here to the Income widget (block of data). It gives you an abbreviated look at your open and overdue invoices and your incoming payments over the last 30 days.

‍

Click the next tab, Cash flow, and scroll down to MONEY IN. Here, you’ll see the current month’s Upcoming and Paid invoices in a graph, and a list of Overdue and

Open invoices. You can create and view invoices here, too, and see a cash flow chart at the top of the page that goes six months both forward and back.

NOTE: This does not change your QuickBooks Online data. It’s merely for demonstration purposes. You could see what would happen to your future cash flow if, for example, you planned to make a major purchase or expected to receive an influx of revenue.

Cash Flow Overview for Better Planning

Navigate to the Cash flow tab to see a visual representation of your practice’s income and expenses. This tool is particularly helpful for owners, who needs to forecast their practice’s cash flow to plan for future expenses, such as hiring additional staff or investing in new equipment. The interactive planner allows you to see the impact of potential financial decisions without affecting your actual data, giving you the confidence to make informed choices about your practice’s growth.

Stay on Top of Your Sales

The Sales page is your go-to for a detailed overview of your practice’s outstanding invoices. By selecting "All sales" under the Sales tab, you can view the status of each invoice as it progresses through stages such as "Unbilled income," "Overdue invoices," and "Recently paid." This visual representation allows owners to quickly identify which patients or insurance claims need follow-up, ensuring the practice maintains a steady cash flow.

Run Detailed Reports to Understand Your Receivables

For a deeper dive into who owes you, the "Who owes you" section under Reports provides customizable options like the A/R Aging Summary. The A/R Aging Summary report, for example, shows which customers have current balances and which are overdue by 1-30, 31-60, 61-90, or 91+ days. This report breaks down your receivables by how long they’ve been overdue, giving you actionable insights into which accounts require immediate attention. Regularly running these reports can help Sarah maintain accurate financial records and stay compliant with healthcare regulations.

‍

Utilize Advanced Financial Reports

Beyond tracking receivables, generating comprehensive reports like the Statement of Cash Flows, Profit and Loss, and Balance Sheet can provide you with a clear picture of the practice’s overall financial health. These reports are essential not only for day-to-day management but also when preparing for major financial decisions, such as applying for loans or expanding services.

Contact us anytime, in fact, if you need advice on managing your receivables – or if your cash flow has grown troubling. We can help you understand the ways QuickBooks Online can assist as you explore the flow of your incoming revenue and try to accelerate it.

‍

‍