# Khata

**A khata is a ledger or account book, the bahi-khata, where a business records credit given to each buyer and payments received.**

## What it means

A khata is the record of who owes you what. Traditionally it was a red cloth-bound bahi-khata; today it may be a Tally ledger, a spreadsheet or a mobile khata app. Each buyer, or party, has its own page showing invoices raised, payments received and the running balance.

A clean khata answers three questions at a glance: how much is outstanding, since when, and what was promised.

## Why it matters for getting paid

You cannot collect what you cannot see. A khata that only shows totals hides which invoices are old and which are fresh. When a buyer disputes a balance, an invoice-wise khata with dates settles the argument quickly and politely.

Good khata practice for collections:

- Record each invoice separately with its date and due date.
- Match every payment to specific invoices, not just "on account".
- Note promises and calls next to the entry.
- Share a statement of account with the buyer regularly.

**Example:** A buyer shows a balance of ₹1,80,000. An invoice-wise khata reveals ₹60,000 of it is over 90 days old. That old amount needs attention first.

Turn your khata into an [overdue ageing](/en/glossary/overdue-ageing) report with the free [overdue ageing calculator](/en/tools/overdue-ageing-calculator), and track your [DSO](/en/glossary/dso) over time.

Source: https://udhaar-wapas.com/en/glossary/khata