Receivables and payables: who owes you and whom you owe
Receivables and payables are your company’s financial picture on one screen — what’s owed, what you owe, due dates and reminders. Why they matter for liquidity and how to keep them stress-free.
A company can be profitable „on paper" yet have no money in the account — because customers owe it and suppliers are waiting. Receivables and payables are exactly that: an overview of who owes you (receivables) and whom you owe (payables), with due dates. It’s your company’s financial picture on one screen.
Why they matter
The biggest killer of small firms isn’t a loss but liquidity — the moment a payment is due but the money hasn’t arrived from the customer yet. Receivables and payables show how much is owed to you, how much you owe and when each falls due, so you can plan instead of firefighting. Without them, every month-end is uncertain.
Due dates and reminders
The key isn’t only knowing who owes, but when. A good system tracks deadlines and sends reminders and polite payment notices before a debt becomes a problem. That way you collect on time, without awkward phone calls and without forgotten invoices. Collecting on time is often the difference between a calm and a tense month-end.
How not to keep it in your head
Keeping debts „in your head" or in notebooks works while there are few — then one forgotten invoice eats your margin. Magaza keeps receivables and payables automatically: every invoice and payment posts itself, you see open items and due dates, and reminders are a couple of clicks away.
Key takeaways
- Receivables + payables + due dates in one place
- The biggest risk is liquidity, not the loss itself — track who pays and when
- Automatic reminders and payment notices speed up collection
Frequently asked questions
Receivables are money customers owe you; payables are money you owe suppliers. The difference shows your real financial position.
Yes — receivables show open items by partner and due date, so you instantly see who’s late and whom to send a reminder.
Read more
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