Keep unpaid client invoices visible beside the money received
An invoice can be overdue while your bank statement looks complete. To understand what customers still owe, you need the billing history as well as the payments that reached an account. Start by deciding which question you need your tools to answer.
Use your invoicing system for balances and follow-up. Arkrel helps with the bank and credit card statement review that sits alongside those records. Try one statement free, review its merchants and preview My year. No card needed.
Make an open invoice list for a stated date
Keep the client name, invoice number, issue date, due date, original amount and payments already applied. Add any credit or agreed adjustment and the amount still outstanding. Label the date of the list so an older snapshot is not mistaken for today's position.
Separate an invoice that was never sent from one the client received and disputes. Save the agreement and correspondence that explain the status. That distinction helps you decide whether the next step is sending paperwork, resolving a question or following up on payment.
Trace partial and combined payments
When a client pays only part of an invoice, keep the original bill and the payment reference. If one transfer covers several invoices, save the remittance information showing how the client intended it to be applied. Check the billing system against that evidence before relying on its open balance.
For a simplified hypothetical example, a $1,200 invoice has a $500 payment applied. The open amount is $700 before any credit or other adjustment. The statement shows the $500 received; the invoice history explains the separate $700 still being discussed. Neither record should disappear when you prepare the other.
Check the accounting method before treating an unpaid amount
IRS Publication 334 explains that accounting methods affect when income is reported. Ask your preparer to confirm the method used for your return and the treatment of the invoices you have listed. Do not change the method simply to make the billing total match the deposits.
Keep collection problems on the question list too. The same IRS publication explains that an unpaid fee generally does not create a deductible bad debt for a cash-method business when that income was never included. Give your preparer the actual history before deciding whether any adjustment applies.
Choose the tool for the work still outstanding
If your immediate need is sending invoices, reminders or payment links, continue that work in your billing system. Use it to maintain the customer balance and the outcome of each follow-up. Save a dated copy of the open-items list when handing records to your accountant.
If the missing piece is understanding the year's received money and expenses, review your statements in Arkrel. Keep invoice references nearby when a deposit combines payments or the payer name differs from the client name. Unresolved amounts belong on the separate question list for the preparer.
Prepare the statement report and the billing handoff
Free includes one statement upload, merchant review and a My year preview. Full tax reports, downloads, exports and accountant sharing require a paid plan. The paid report includes a profit and loss summary, Schedule C totals and likely deductions for review.
Catch-Up is $499 one time per purchased tax year, with a 30-day money-back guarantee. Autopilot is $49 per month with a 14-day free trial and covers the current calendar year only. Review Arkrel pricing for the statement work you need.
Give your preparer the business report, dated open invoice list, partial-payment references and disputed-item explanations. The profit and loss guide covers statement-based preparation. The accountant checklist helps you assemble the wider records for the final review.
Questions about unpaid client invoices
Does an unpaid invoice appear on a bank statement?
The statement shows account activity. Keep an unpaid bill in your invoicing records so it remains visible even before a payment arrives.
What if the client makes several small payments?
Retain each dated payment reference against the same invoice history. Check the remaining balance in your billing system after credits and other changes.
Should I deduct the amount the client never paid?
Ask your preparer to review the accounting method and prior reporting. An unpaid fee that was never included in cash-method income generally does not create a bad-debt deduction.
Can I use Arkrel to chase overdue clients?
Handle invoice delivery, reminders and collection status through your billing process. Use Arkrel to review the related statement activity and prepare the paid business report.
Is the full report available with the free statement?
Free includes one statement, merchant review and a My year preview, with no card. Full reports, downloads, exports and accountant sharing require payment.
Begin with one statement and a dated list of the invoices it helps explain.