Accounts Receivable

Financial statements are used to communicate accurate and reliable financial information to end users in an efficient and effective manner. Often, financial statements intended to help end users…

Accounts receivable turnover rates can provide you with a strong indication of how well your company is doing in the food and beverage distribution industry. Accounts receivable is the accounting term…

When a company bills for services or products, that invoice becomes part of their accounts receivable total. In a perfect world, all accounts receivable would be paid, but unfortunately there are some…

When you run a business, you need to know how much money you are owed and the money needs to be paid in a timely manner. Without efficient bookkeeping tools, some of your accounts could fall through…

Accounts receivable systems contribute to your overall business in a very specific way. Learn about how accounts receivable systems contribute to your overall business with help from a business…

Accounts receivable are a measure of sales already completed whereby the customer pays the amount due at a later time. When the initial sale takes place, revenue is increased and accounts receivable…

A company experiencing a shortage of cash on hand may sell its accounts receivable to a factor to free up cash. A factor is a commercial lender that buys the accounts receivable from a company at a…

You can use a wire transfer to electronically transfer money from your bank account to an account belonging to someone else. You do not need to have a special checking account to send a wire transfer…

If you use the Sage ERP Accpac software to handle your accounts, then it will utilize the Pervasive.SQL database, the Microsoft SQL Server ot the Oracle Database Server. If you have previously used…

Estimating how much you will receive from your current accounts receivable is essential to business budgeting. While you cannot calculate the exact dollar amount you will receive, you can, by…

It would be much simpler to run a business if you were paid immediately for all of the goods and services that you provide for your clients. In reality, however, many business transactions involve…

Accrued revenue and accounts receivable are different financial statement items, despite being closely related in journal entry recording. While accrued revenue is reported in the income statement,…

Accounts receivable is a critical function of a company's order-to-cash process. After sales are made and products are shipped, the accounts receivable department is tasked with transforming the sales…

Converting from a cash basis to accrual accounting is not overly difficult, but you should plan properly and understand both methods to ensure a smooth transition. While there is no single formula for…

Two parts make up a company's capital structure: debt and equity. However, there are other ways to obtain capital. One of those ways is selling non-critical asset, such as an accounts receivable loan.…

A receivable is an amount due to a company from customers or other businesses. Accounts receivable refer to money owed by customers on an account. Often, the accounts result from the sale of goods or…

Investors often appreciate it when a company joins the competitive fray head-on, taking a confrontational strategy to dodge rivals’ strategic bullets, attract customers and make money. An…

Accrual basis accounting permits sales on credit to be recorded on the accounting ledger so long as the right conditions are met. First, the source transactions that produced the revenues must be…

A company that makes a sale on credit must record the amount of the sale in the accounts receivable account. This means the company expects to be paid at a later date, but the goods and services are…

Accounts receivable coordinators hold the responsibility of managing all aspects related to billing clients and collecting and recording income. This job role plays a crucial part in the financial…

Receivables record amounts that a company expects to receive within a short period. In accrual accounting, companies record revenues as they are earned, even if cash payments occur later. In cash…

Accrual basis and cash basis are two accounting methods businesses use. Accrual basis accounting recognizes revenues when earned (when products or services are delivered and either payment is received…

Financial managers treat a credit in customer receivables — the other name for accounts receivable — as a reduction to the account's balance. This treatment is in sync with basic…

Accounts receivable is usually one of the main asset accounts for companies, especially the ones that offer credit. Companies also have to estimate how much of the accounts will be noncollectable. To…

As you do business, you can expect some of your vendors or customers to default on outstanding invoices. When this happens and you cannot collect on it, you write off the bad debt. In QuickBooks, you…

When a company records revenue only when it receives customer remittances, finance people say the business is using the cash method of accounting. This method requires that corporate bookkeepers focus…

The debtors' turnover ratio, also known as the debtors' "velocity," is a calculation commonly used by financial institutions to show the net purchases charged by debtors as a percentage of…

Two types of bankruptcy options are available to people experiencing significant financial hardship. Chapter 7 is a liquidation where all assets are used to pay off debts. Chapter 13 is called…

You can never have negative accounts receivable in accounting. Also known as customer receivables, accounts receivable constitute money a business expects to receive from clients. If the business…

A note receivable is a written promise a customer sends a company, vouching to remit a specified sum of money at a date that finance people often call "maturity date." There are various…

Duties involved with accounts receivable start with creating an invoice for the client. But the duties and responsibilities don’t end there. Transactions occur that post to the general ledger…

Accounts receivable is the business account that holds the money that the business is due through sales on credit, but has not actually been paid yet. Businesses design their sales techniques so that…

There are two primary types of accounting methods used by businesses: the cash-basis method and the accrual method. Cash-basis businesses recognize income when cash is actually received on a sale as…

In accounting, there are two methods for handling revenue and expanses: accrual and cash. Cash accounting records transactions when funds transfer hands from one business to another. With accrual…

In the past, receivables had reserves on their accounts for a percentage estimated to be uncollectible. The term "reserve" can appear to imply that a portion of cash has been set aside to cover the…

Offering credit is usually necessary when operating a business. A disadvantage of offering credit to customers is that some of them will fail to pay. If a business does not report this risk on its…

Accounts Receivable tracking, also known as A/R tracking, is a way of keeping tabs on the amounts you have billed customers which they have not yet paid. It is an asset account because it is money…

Cash payments for sales affect the cash, accounts receivable and sales revenue accounts. These payments occur when sales are paid with cash and when collections are received on credit sales. For cash…

A company's accounts receivable comprise open accounts of customers that owe the company for products or services. A transaction becomes a receivable once the customer is sent an invoice. These…

Accounts receivable -- also known as customer receivables -- represent money a business expects from clients after abiding by the corresponding contractual agreements. These could relate to selling…

When auditing accounts receivable, auditors must show that financial statements are prepared under GAAP, or Generally Accepted Accounting Principles, and in accordance with applicable financial…

The two basic methods of accounting businesses use are the cash basis method and the accrual method. The cash basis method is a more concrete, straightforward method that requires accountants and…

You can cash in an Individual Retirement Arrangement (IRA) at any time. However, IRAs contain tax-deferred funds, which means that you have to pay income tax on withdrawals. If you cash in your IRA…

To record the unfortunate news of customer near-defaults or outright insolvency, a company may use the allowance method based on credit sales or the one drawing on accounts receivable data. Both…

Retainage is used in connection with construction and other contracts to provide both private and public sector clients a financial remedy in case of default or nonperformance by a contractor. Though…

Accounts receivable is money owed a company for supplying products and services. The source of accounts receivable is a credit line with money owed within a specified time frame. A receivable…

A business accounting cycle involves certain monthly entries to adjust account balances. This ensures each account reflects the accurate balance and activity at the end of each accounting period.…

Customer invoicing helps businesses make more sales and gives customers more time to pay for their purchases. Many firms grant their customers short-term credit, delivering goods or services and…

Deferred income or revenue refers to money paid to a business for goods or services that have not yet been manufactured or performed. If your business wants to assign revenue to the months or…

Most accounting uses either a cash basis or an accrual basis. Cash basis accounting records revenues when cash and cash equivalents are received and expenses when cash is paid out. Accrual basis…

Accounts receivable is an important function of companies that make sales to their customers on credit. Since selling to customers on credit exposes the company to risks, it is important for the…

It's important to know how much money customers owe when you applying for loans or determine the value of your business. The gross balance of your accounts receivable is the total balance of any…

Net sales are the amounts of revenues that the business realizes after subtracting the total of sales returns and discount allowed on sales from the total sales amount -- gross sales. Accounts…

Accounts receivable are current asset accounts found on the balance sheet in a accounting system. If one company extends credit to another company for purchases, each time the customer completes a…

Accounts receivable is a category that businesses use to record all the revenue that they have earned and have invoices or promissory notes for but have not yet collected. In other words, it is how…

When businesses extend credit to customers, they expect the customer to pay the bill in full. Sometimes customers default, or fail to pay their bill. Some customers run into financial challenges and…

LIFO is one of two popular inventory valuation accounting methods used by businesses in accounting for raw materials, work-in-progress and finished products. The other is FIFO. LIFO is last-in,…

Accounts receivable is a business term used to describe the account that the business uses for money that it has made through transactions but has not received. This is very common with credit. A…

One of the risks assumed by businesses when they grant credit to customers is that the customers will not repay their accounts. Businesses call these accounts "bad debt" or "a charge-off," and these…

Running a successful business requires more than just dumb luck. You need to keep track of how much money you bring in, how much money you owe to creditors, and who owes you money. Establishing a…

To ensure accuracy in accounts receivable reporting, corporate executives infuse daily operational life with strategies and tactics as diverse as checking customer accounts, identifying past-due items…

For a business, implementing sound practices for accounts receivable is a money saver because the organization can gradually reduce its bad debt levels over time. Bad debt is money a business may not…

Businesses must keep an eye on their accounting practices if they wish to operate long-term. This is especially true with small businesses, where a small amount of money can make a big difference to…

The cross age rule in accounting, also referred to as the cross aging rule, states that if more than a certain percentage of the receivables for an individual account are overdue, then the entire…

Accounts receivable represent money that is owed to the company. The money is owed by the company's debtors. The debtors have received the products and services of the company but have not paid for…

A company's top management formulates client-account-monitoring procedures and credit-check policies so everyone is on the same page with respect to customer account write-off, collection and…

In the regular course of business, a trade receivable is the amount billed to a customer for the sale and delivery of goods or services. In accounting terminology, a trade receivable is sometimes…

Businesses that offer customers the option of paying for their purchases using an installment plan occasionally find themselves in a cash crunch. Not receiving your money at the time of sale can make…

The accounts receivable turnover ratio offers a glimpse of a company's ability to collect payments on credit accounts. Company executives consider this ratio when deciding whether to change terms and…

Accounts receivable reports may help owners or management to make budget decisions, or provide financial information for outside parties, such as lenders or investors. Companies use aging reports to…

Selling your accounts receivable is one way to free up cash. Lenders called "factors" purchase your accounts receivable at a discount, allowing you to bring in cash for your immediate working capital…

Research and evaluation are fundamental for every business. If the business is to grow, develop and sustain itself in the market, it needs a constant and continuous research mechanism. Unless the…

Companies routinely extend credit to customers to make purchases. Accounts receivable is a balance sheet account that includes outstanding credit invoices. Credit is convenient for customers because…

There are two tools used to analyze accounts receivable turnover that are useful to a business. These are the accounts receivable turnover ratio and the days'-sales-in-receivables ratio. The accounts…

Many investors like a particular company and want to purchase stock in that company. If they lack the funds to purchase the total number of shares they desire at one time, they may enter into a stock…

Accounts receivable is a current asset indicating customers owe the company money. Companies sell goods on account to increase sales while allowing cash payments at a later period. Though accounts…

Credit sales allow a company to increase sales revenue by not requiring immediate cash payment when selling goods and services. The result in accounting is an increase in accounts receivable.…

Accounts receivables are the total outstanding amounts of money owed to the business by debtors who access goods or services on credit. A schedule of expected cash collection is an outline of…

Business bookkeeping systems may seem complex but are important to have, particularly when it comes to accounts receivable. It is easy for the average business that sells items on credit to tie up a…

Fixed asset accounting is an activity that measures and assesses a company's items used in business operations. Fixed assets represent items a company will use for several years. At the end of an…

Accounts receivable is the total amount of money owed to the business by other businesses or individuals usually referred to as debtors. Summarized in the aged accounts receivable listing, these…

A company's average collection period, or ACP, shows the average number of days it takes a company to collect its accounts receivable balance, which is the amount of money a company must collect from…

Many businesses that are not cash-based carry accounts receivable in their books. These are amounts that customers owe the firm and are usually recognized as revenues in the income statement. This…

Evaluation research is a systematic form of investigation and inquiry that applies social science research methods to assess the design, implementation and outcomes of programs. Evaluation research…

Accounts receivable are an integral part of many firms' balance sheets, especially firms that sell merchandise on credit or on account. Accounts receivables are current assets (assets which are likely…

Business owners with accounts receivable may sell the accounts to a factoring company for upfront cash. Factoring companies typically buy the invoices for a percentage of the face value. The exact…

Most accounting systems offer A/P (accounts payable) aging reports to help managers control current liabilities. This report shows what a company owes, to whom and for how long. When cash is tight,…

When an unpaid debt sits on your company's accounts receivables, it cuts down on the amount of cash flow to which you otherwise might have access. Your accounts receivable sometimes may represent a…

Financial ratios are useful tools to analyze and evaluate a company's financial and operational performance. Most of the information used to calculate financial ratios is found on a company's…

Accounts receivable is a common account for many businesses that sell goods or services on trade credit. Essentially this means that the business is loaning money to the customer to allow the customer…

A company creates accounts receivable when its sells goods on account. This allows a customer a short period of time to pay his outstanding bill, such as 15 or 30 days. However, businesses may not be…

Determining the average number of employees examines the number of workers you have during a certain period of time. Because it is not economical to count the number of employees each day and then…

Accounting for factoring receivables is not complicated once you establish the appropriate accounts and understand how factoring works. Factoring is when a company sells the right to collect on its…

A "bounced" check occurs when you write a check amount that is more than the available balance in your checking or savings account. You might bounce a check by accident if you do not monitor your…

Developed by a veterinarian to help children learn the responsibility of pet ownership, FooPets is an online virtual reality game that gives children the opportunity to buy, take care of and train up…

Businesses resort to various means to finance operating activities and remain economically afloat. Traditional funding procedures involve the issuance of debt or equity products in public markets or…

Accounts receivable turnover is one of the statistics businesses use to determine how efficiently it collects money. This is an important statistic for business management and for the investors in a…

Average accounts receivable is a calculation commonly made in accounting. It is primarily used for ratio analysis and calculates a company's average accounts' receivable. Accounts receivable is an…

Accounts receivable are funds owed to a company from customers who have purchased items on credit. One of the key measures of liquidity is the speed at which accounts receivable are converted to cash.…

Accounts receivable is a term used in businesses where companies allow customers to buy goods or services on credit. If customers only pay by cash or check, then accounts receivable is a very basic…

In accounting, notes receivable is when one party extends a line of credit to another party with the promise to pay at a future date. When a party sells a good or renders a service but has not yet…

Accounts receivable is an asset account that businesses use to keep track of all amounts owed to them from vendors or customers. When a business allows credit sales, it sets up payment terms with the…

According to ING, accounts receivable is the largest or second largest account on most companies' balance sheets. The account represents all outstanding trade credit, other monies that need to be…

Accountants are responsible to accurately record each transaction in a company. Accounts receivable and adjusting accounts are two accounts of importance to accountants. An adjusting account alters…

The term "accounts receivable" refers to money a company expects to collect from customers. When clients don't send remittances on time, the business may initiate credit collection actions to learn…

Used primarily by contractors and sub-contractors, accounts receivable factoring is a popular cash-flow device for small businesses that find it difficult to pay operating expenses during the lag time…

The sale of goods on account will result in accounts receivable. This is an accounting term that indicates a company has customers who owe the company money. Uncollected accounts receivable will have…

The accounts receivable (AR) manager manages the process of collecting money owed by entities to their employer. He must manage the AR staff and ensure that the work being performed is correct and in…

Factoring is a traditional way for a business to supplement its working capital by selling its accounts receivable -- invoices representing money owed by its customers -- to specialist finance…

Businesses resort to accounts receivable financing to fund their operating activities until customers pay for goods or services. The practice is particularly common in industries where clients don't…

Companies use different types of ledgers to track financial information. An accounts receivable ledger is used to track all sales made on account by customers. A subledger, or subsidiary ledger,…

When running a business, it is common to have a balance in the "Accounts Receivable" portion of your balance sheet. Accounts receivable is a list of how much money you are owed by customers and other…

Amtrak, officially titled the National Railroad Passenger Corp., provides train service in 46 states and three Canadian provinces. In fiscal year 2010, it served more than 28.7 million passengers,…

Accounts receivable occur when a company sells goods or services on credit. Customers can usually pay their outstanding bill over a short period of time. Businesses report these transactions as an…

Companies create a schedule of accounts receivable as a way of monitoring the amounts and due dates of customers with credit accounts. Accounts receivable refers to accounts to which a company offers…

Accounting records the many transactions that a company engages. Two common transaction groups are accounts payable and accounts receivable. Payables indicate money owed by the company to suppliers…

Every bank account with HSBC Bank has a unique identification number attached to it. This number is tied to both the checks that you write and any debit card you may use. If you ever need to know your…

An accounts receivable list is a compilation of all accounts a company sells goods or services to on account. When a company sells on account, it allows customers to receive goods and services now but…

If you are looking for ways to get more cash from your working capital, you should look into factoring your accounts receivable. Factoring receivables involves turning over your right to collect cash…

The U.S. Postal Service releases new stamps every year, most of which are suggested and designed by the public. The Postal Service's Stamp Advisory Committee has specific criteria for submissions. It…

Accounting procedures provide a series of ledgers for recording financial information. Accounts receivable and accounts payable are two common ledgers in an accounting system. Accounts receivable…

Accounts Receivable are a set of accounts for customers that are not required to pay for goods and services when they receive them. Instead, they pay for the good or service after an agreed upon…

Many people fear that the lack of business financing could threaten employment, an essential element in the economic engine. While this may be true, job growth often comes from consistent corporate…

Accounts receivable are creditor records of money owed by a debtor. Proper reporting of the debt on financial statements follows Generally Accepted Accounting Principles (GAAP) standards. Most…

Companies regularly extend credit to customers who promise to pay the amount due at a future date. This credit comes in two main forms, accounts receivables and notes receivables. Accounts receivables…

Businesses often sell goods and services to customers on credit. This produces invoices called accounts receivable. Often, companies need cash to pay for the day-to-day operations of the business.…

For companies that sell on credit, accounts receivable can make up a substantial portion of the balance sheet. An auditor must understand how a company could misstate accounts receivable, either…

When accounting using the accrual method, you need to keep track of accounts receivable. The accounts receivable is the amount customers owe you in the future. Most accountants like to label each…

Consumers often lack the funds to pay for a desired purchase at a given time. To make the sale, businesses may offer consumers the opportunity to purchase the item on credit. The customer enters into…

In a competitive marketplace, businesses always look for ways to encourage sales to new customers or repeat purchases from valued clients. Many businesses offer extended payment terms to customers to…

When you run a business, you may have clients or customers who owe you money. You may have provided a service and sent invoices out, and now you're waiting to get paid. This type of situation is…

Accounts receivable is an accounting term used to describe the payments that a business is owed but has not yet collected. When a business makes a sale, the business charges a specific amount to a…

The announcement of a corporate bankruptcy generally injects a note of alarm in the business environment, especially if the filing firm is a major industry player. The company's ability to repay…

If you have accounts receivable in your small business, you have a bankable asset. You can sell accounts receivables to a finance company. This process is called financing accounts receivable, or…

Whatever type of business you run, your system of billing your customers is one of the most important aspects of making a profit. Without an effective system for collecting on accounts receivable, you…

Your accounts receivable cycle is calculated on a sale-by-sale basis. Each person you sell to will pay at different rates. You typically want your customers to pay quickly. The more efficient your…

When you have a company that allows customers to pay on credit, there will be accounts receivable. You can charge interest on the accounts receivable, however, you need to do so on a…

Accounts receivable totals give you information on how much credit the company has issued and how much income the company can expect to receive in the future. The longer it takes for a company to…

Accounts receivable turnover looks at the credit policy of a company. The higher the turnover, the tighter controls the company has on its credit sales and collects on its credit sales in a fast…

Accounts receivable is the amount of money other people or companies owe you. Average accounts receivable looks at the accounts receivable balance at the beginning of the year as well as the end of…

A note receivable and an account receivable are both types of credit sales. An account receivable is a simple promise to repay the merchant, and a note receivable is a formal financial instrument that…

The National Security Agency employs their own force of police officers who protect the assets of NSA facilities, as well as providing protection during counterterrorism attacks. Much like the…

Accounts-receivable personnel ensure that a company's customer data are accurate, with respect to materials shipments, check receipts and discounts. These professionals usually work under the tutelage…

According to the American Academy of Dermatology, "A dermatologist is a doctor who specializes in treating conditions that affect the skin, hair and nails." While some dermatologists focus on medical…

It takes money to keep a business running. Payroll, rent and utilities must be paid. When payments on customer invoices are late, it is sometimes necessary to turn to other means to keep money flowing…

Accounts receivable are important to any business as they directly affect cash flow. A firm cannot survive long without a steady flow of money from operations. Many firms borrow funds based on the…

Mezzanine debt is a type of liability financing often used by businesses to fund specific projects and, occasionally, as a source of operational capital. Mezzanine debt is also frequently used in…

The accounts receivable department of a company is responsible for billing the organization's clients for the goods and services it sells. The accounts receivable manager oversees the employees that…

For United States government employees, the Entrance on Duty Date, otherwise known as your EOD, is utilized to calculate your benefits including vacation time, sick leave and pensions. EOD is the…

When you hear the terms debit and credit, using a debit or credit card probably comes to mind. In accounting, debit and credit are terms used to describe increases in values of assets, items or…

Twitter is a social networking website that allows users to post updates that are 140 characters long. People often use these short posts to tell others about their day, their whereabouts, their…

Sales returns are when a customer returns merchandise, to a merchant, he doesn't want because it's defective, damaged, or the wrong type, size or amount.

Accounts receivable are amounts that customers owe to a company. Accounts receivable are short-term assets, meaning the company expects to receive funds within 12 months. Other examples of short-term…

Factoring accounts receivables is a normal practice done by many businesses in order to generate capital faster. By factoring accounts receivable, a company sells their accounts to an outside source…

Factoring accounts receivable occurs when a company takes amounts people owe the company and gives them to another company in exchange for cash. Factoring is either with recourse or without recourse.…

According to the Web Center for Research Methods, evaluation entails systematic gathering of data as a way to gain feedback to inform decisions. Because evaluation research takes place in political…

Businesses often consider different types of strategies for their accounts receivable accounts. Accounts receivable is an asset account and represents all money owed to a business by its customers for…

Many businesses take advantage of factoring their accounts receivables. Accounts receivables are asset accounts that a business owns; these are used to track money owed to the business by customers.…

Accounts receivable aging lies in the field of accounting that involves keeping track of assets that need to be written off. After a certain point after someone owes you money for a business…

A company's accounts receivable are among its most important assets, representing sales that have not yet been paid for or converted to cash. The business's line of credit or financing may be tied to…

When you fax a message you typically use a fax machine and a phone line. However, you do not need either to fax a document to another line. If you have an email account service (such as Hotmail,…

Businesses can receive government subsidy assistance for a number of reasons. Some of the most common include subsidies that encourage hiring minority or disabled workers, or those designed to help…

A discount is a reduction in a total invoice amount. Discounts normally appear on an invoice and apply to items such as wholesale or volume purchases, or early payment of a credit balance. There may…

When investing in a certificate of deposit, you want to take advantage of the best interest rates possible for a certain maturity term. The biggest advantage of a short-term CD is that your money is…

An Automated Teller Machine, or ATM, seems to take the place of face-to-face banking these days. You can simply walk or drive up to your bank's ATM and do many transactions without ever speaking with…

The manufacture of gold leaf began thousands of years ago, and remains a viable industry all over the world, with a range of applications. Today, the process of manufacturing gold leaf is automated…

One cannot contribute more than 25 percent of one's income to a SEP IRA each year. In addition, the amount contributed to a SEP IRA account is limited to $49,000 in 2009. It will increase slightly for…

Accounts receivable stem from a business providing a service or product to a person or business entity on credit. An account receivable is essentially a sale that a company has made but hasn't yet…

Accounts receivable is a list of all customer information, and depending on the ERP system, there will be available invoice-level detail provided by customer. Discover how to apply payments received…

If you deposit or cash a check that has insufficient funds in the account from which it is drawn, the check will be returned, normally after it has been presented for collection twice by your bank.…

Cash is always king. Businesses must be mindful of payroll and the day-to-day operations of an organization. It is crucial that every company has someone who is tasked with monitoring and reducing…

Accounts receivable lines of credit are important for growing businesses looking for a customizable financing option. Banks who facilitate this funding determine the amount of credit based on your…