AP & AR
Cash application
Incoming customer payments are matched to the right invoice and posted to the correct account across every Canadian bank, e-transfer and payment processor you use, so accounts receivable reflects what is actually still owed rather than a balance nobody has checked in weeks.
Aged receivables
Illustrative client · August 2026
CAD
| Customer | Current | 1-30 | 61+ | |
|---|---|---|---|---|
| Customer A | 18,400 | - | - | - |
| Customer B | 9,250 | 4,100 | - | - |
| Customer C | - | 6,780 | 2,200 | - |
| Customer D | 12,600 | - | - | - |
| Customer E | - | - | - | 1,450 |
| Total | 40,250 | 10,880 | 2,200 | 1,450 |
Illustrative. An example of the document, not a client's figures.
Matching payments to invoices
Incoming payments are matched to the invoice or invoices they settle as they land, whether that is a direct deposit, an Interac e-transfer, a cheque, or a card payment through a processor connected to your ledger. GST or HST collected is applied against the correct invoice line rather than lumped into one deposit figure.
Partial and mismatched payments
A customer paying the wrong amount, whether short or over, is not guessed at. It is held as an open item, noted against the invoice, and put back to you with a question on how to apply it, so your receivable balance stays accurate instead of quietly wrong.
Unidentified deposits
A deposit that arrives with no clear reference is held on a short list until the customer is confirmed, rather than posted against the nearest guess of an invoice. That short list is reviewed regularly so nothing sits unresolved for weeks.
Fees kept separate
Payment processor fees are separated from the gross amount received, so your receivable balance and your bank deposit reconcile cleanly against each other rather than leaving a small unexplained gap every time a card payment clears.
Why this matters for GST/HST
Because AR balances stay current, the revenue figures behind your GST/HST filing frequency, whether that lands you on annual, quarterly or monthly filing under the CRA's thresholds, are based on real applied cash rather than invoices that were never actually collected.
Where this connects to collections
A payment applied late or short often overlaps with an account already on a collections cadence. Clean cash application means a reminder does not keep going out after a customer has actually paid, which is one of the fastest ways to damage a customer relationship you are trying to protect.
Questions
Frequently asked questions: Cash application
Do you handle payments received in a foreign currency?
Yes, matched at the rate the bank actually applied and flagged if the conversion leaves a residual balance.
Do you handle payments across multiple banks or processors?
Yes. Deposits from Canadian banks, Interac e-transfer, cheques and card processors all get matched back to invoices regardless of which account they land in.
How does this connect to our GST/HST filing?
Accurate, current AR means the revenue behind your filing frequency reflects real applied cash, which matters whether you file annually, quarterly or monthly.
What exactly is included in cash application?
Incoming payments matched to the invoice or invoices they settle, and partial payments and overpayments flagged for your instruction. This work runs inside QuickBooks Online or Xero, whichever your business already has in place, and it rolls into your regular monthly close rather than sitting off to the side as a separate, unreconciled process.
What happens to our cash application records if we switch providers?
Everything stays inside your own QuickBooks Online or Xero account, so the full history transfers with the subscription, not with Finbryn. You can hand cash application to another provider or bring it in-house at any point without losing a reconciliation or having to rebuild the file first.
What happens when a customer pays the wrong amount?
We hold it as an open item, note what does not match, and ask you how to apply it rather than guessing.
Do you handle payments across multiple bank accounts or processors?
Yes. Deposits from Stripe, PayPal, ACH and wire all get matched back to invoices regardless of which account they land in.
What is included in cash application?
Cash application covers incoming payments matched to the invoice or invoices they settle and partial payments and overpayments flagged for your instruction. The exact scope is agreed and set out in writing before work starts, so you know precisely what is and is not covered before the first deliverable arrives.
How is cash application priced?
Pricing for cash application depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
Related services
- AP & ARAged receivables reportAn aged receivables report is prepared each month, showing what customers owe and how overdue it is, so you can see collection risk before it becomes a cash problem.
- AP & ARInvoicingCustomer invoices are created and sent on the schedule your contracts call for, with terms, quantities and pricing checked against the underlying agreement before anything goes out.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.