AP & AR
Cash application
Incoming UK customer payments, by Faster Payments, BACS, card or standing order, are matched to the right invoice and posted in Xero, QuickBooks Online or Sage, so your receivable balance always reflects what a customer genuinely still owes rather than what the bank feed happens to show on a given day.
Aged receivables
Illustrative client · August 2026
GBP
| 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 money to the invoice it belongs to
Every incoming payment is matched to the invoice or invoices it settles, whether it arrives by Faster Payments, BACS, standing order or card through Stripe or GoCardless. A partial payment or an overpayment is flagged rather than applied on a guess, and you decide how it should sit against the account.
Deposits that cannot be identified straight away, a payment with no reference or a reference that does not match any open invoice, are held on a short list until the customer is confirmed, so they do not sit as an unexplained balance in the bank feed for weeks. Payment processor fees, on card or platform payments, are separated from the gross amount received so the invoice shows what was actually collected against it.
We work across bank accounts and processors, so a payment landing in a separate GBP or multi-currency account still gets matched back to the right customer and invoice, keeping one accurate receivable position rather than several partial ones.
Why this matters for the ageing report
Cash application feeds directly into the ageing report described elsewhere on this page. A payment matched late or matched to the wrong invoice shows a customer as overdue when they are not, or current when they are not, so this step is treated as a daily task, not something left to catch up at month end. Getting it right daily is also what keeps a collections reminder from going out to a customer who has, in fact, already paid.
Questions
Frequently asked questions: Cash application
What happens when a UK customer pays the wrong amount?
It is held as an open item with a note on what does not match, and we ask you how to apply it rather than guessing.
Do you handle payments landing in a multi-currency account?
Yes. Payments from GBP and foreign-currency accounts, and from Stripe, GoCardless or card processors, are all matched back to invoices regardless of which account they land in.
How quickly is a payment matched after it clears?
Matching runs daily, rather than being left until month end, so the receivable balance is current when you check it rather than a week or more behind.
What happens to a payment that cannot be matched to an invoice?
It sits as an unapplied receipt flagged for review rather than being guessed onto the wrong invoice, since a wrong match distorts your ageing report and can trigger an incorrect chase to a customer who has already paid. We follow up with you or the customer to identify it correctly.
How do you handle part-payments against an invoice?
A part-payment is applied against the specific invoice it references, leaving the remainder correctly showing as outstanding rather than clearing the invoice entirely. If a customer has not said which invoice a part-payment covers, we confirm with them before applying it, so the ageing report stays accurate.
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.