Outstanding invoice meaning: open vs. overdue invoices explained

An outstanding invoice is any invoice that has been issued but not yet paid in full. It is not necessarily late. It is simply money the customer still owes you.

Outstanding vs. open vs. overdue

• Outstanding: issued and not fully paid, whether or not it is due yet.
• Open invoice: the same idea; the term many accounting systems use.
• Overdue or past due: outstanding and past its due date.
• Partially paid: some payment received, a balance still outstanding.

What is an outstanding balance?

The outstanding balance is the total unpaid amount across a customer's invoices, or across your entire ledger. It is the headline number in accounts receivable.

How to track outstanding invoices

Run an aged receivables report. It groups outstanding balances into bands such as current, 1–30, 31–60, 61–90 and 90+ days overdue. The older the band, the harder the money is to collect, so work from the oldest and largest first.

Why it matters

Outstanding invoices are revenue you have earned but cannot spend. A growing outstanding balance can starve a profitable business of cash.

How to reduce outstanding invoices

• Invoice promptly and accurately.
• Send a reminder before the due date.
• Make payment easy with links and multiple methods.
• Follow up consistently on anything overdue.

Frequently asked questions

What does outstanding invoice mean?

An invoice that has been issued but not fully paid. It may or may not be past its due date.

Is an outstanding invoice the same as an overdue invoice?

No. Every overdue invoice is outstanding, but an outstanding invoice is only overdue once its due date has passed.

What is an open invoice?

Another name for an outstanding invoice: one that has not yet been closed by full payment or a credit.