What Schedules Do
If you take a look at the Accounts Receivable (AR) Aging schedule image at right (click to enlarge), this type of schedule can be printed at any time throughout the month. It shows who owes you, their control (or identifier number), date and amount of last payments, plus what’s overdue and how long it’s been overdue. Because this schedule is laid out to show who is current and who is late, when it’s printed at month or year end, you’ll gain a quick snapshot of the total of AR due (on the example it is $51,340).
When month or year end reports are run, not only will the total amount due number roll to the balance sheet, the past due account totals (shown at bottom of image) will also be displayed on your balance sheet. Displaying the past due amounts can be invaluable when considering a company’s AR assets on the balance sheet.
If the AR were not clearly defined on the balance sheet, or your balance sheet has no line for past due asset accounts, a lender or investor may not be able to evaluate your company’s true worth. In cases such as these, printing out accounting schedules can help determine the real status of your receivables or any accounting schedule that is controlled.
Some accounts such as AR, accounts payables (AP), fixed assets, other income due (such as factory receivables), and capital accounts need to be scheduled to keep track of their activity. This is so important at tax time as your CPA or tax professional can easily print out every schedule to see the entire activity for the year to aid them in tax preparation.