---
title: "What is an Overdue Balance? - AR Dictionary"
description: "An overdue balance is the part of what a customer owes you that has passed its due date. See how it differs from the outstanding balance and the overdue ratio."
url: https://www.paidnice.com/dictionary/overdue-balance
---

# Overdue Balance

## What is an overdue balance?

**An overdue balance is the part of what a customer owes you that has passed its due date.** Invoices that are not yet due are part of the [outstanding receivables](https://www.paidnice.com/dictionary/outstanding-receivables), but not part of the overdue balance.

An overdue balance is a figure for one date. A balance that is rising and a balance that is falling look the same until you compare two dates. The [overdue receivables ratio](https://www.paidnice.com/dictionary/overdue-receivables-ratio) turns the same idea into a percentage of all receivables.

Businesses track the overdue balance by customer and in total, because it shows where cash is stuck. It is often split by age, such as 1 to 30, 31 to 60 and 61 to 90 days past due, in an [aged debt analysis](https://www.paidnice.com/dictionary/aged-debt-analysis).

Reading the figure takes a second number. A large overdue balance on a large book can be normal, and a small one on a small book can be a warning. Compare it with the same date last month before you act on it.

## Start getting paid on time with Paidnice

Connect Xero or QuickBooks and Paidnice prepares draft policies for you. Nothing runs until you approve them.

Try it FreeBook a Demo

[Rated 5 stars, 160+ reviews](https://www.paidnice.com/reviews) · [App of the Year](https://www.paidnice.com/blog/winner-xero-global-app-awards-2026)