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The business of providing Internet connections to paying customers as an Internet Service Provider (ISP) can be lucrative if done with care and planning. According to a 2006 study by the Pew Internet & American Life Project, 73 percent of Americans use the Internet regularly. This step-by-step tutorial will help give you the... more »
Starting or franchising a convenience store is a great way to get your feet wet in owning your own business. These stores allow patrons to purchase food, drinks, medicine and other items quickly, without a long trip to a grocery store. One of the advantages of owning one of these stores is the high margins placed on the products.... more »
A commercial loan, also referred to as a business loan, is used by business owners to fund a business. These loans may be obtained by sole proprietors, partnerships, corporations or other business enterprises. Commercial loans may be obtained by individuals, if the funds are being used for commercial, industrial or professional... more »
A collection manager's position can be challenging and requires a keen sense of business knowledge. A collection manager supervises the financial collection of an organization and is responsible for ensuring that revenue from debtors is being collected properly and in a timely fashion. A collection manager's duties go beyond just... more »
Performing a job in the clerical field will result in a providing assistance to employers and other employees within a business who seek administrative support. Most clerical jobs start off at an entry-level position and can eventually expand into better paying positions that require more responsibility. more »
A credit crunch for debt-heavy businesses means job cuts and reduced capital spending. Cut your...
If you're one of those rare people who love both working with money and performing mathematical...
Accounts receivable stem from a business providing a service or product to a person or business entity on credit. An account receivable is... more »
Some people associate the term "accounts receivable" with collecting overdue bills. But accounts receivable encompasses the entire process of... more »
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... more »
Accounts receivable lines of credit are important for growing businesses looking for a customizable financing option. Banks who facilitate this... more »
Seasoned managers know how to look at accounts receivable and eyeball issues. Accounts over 90 days old when they are typically paid in 30 days... more »
Accounts receivable (A/R) is one of a series of accounting transactions dealing with the billing of customers who owe money to a person, company or organization for goods and services that have been provided to the customer. In most business entities this is typically done by generating an invoice and mailing or electronically delivering it to the customer, who in turn must pay it within an established timeframe called credit or payment terms.
An example of a common payment term is Net 30, which means payment is due in the amount of the invoice 30 days from the date of invoice. Other common payment terms include Net 45 and Net 60 but could in reality be for any time period agreed upon by the vendor and the customer.
While booking a receivable is accomplished by a simple accounting transaction, the process of maintaining and collecting payments on the accounts receivable subsidiary account balances can be a full time proposition. Depending on the industry in practice, accounts receivable payments can be received up to 10 - 15 days after the due date has been reached. These types of payment practices are sometimes developed by industry standards, corporate policy, or because of the financial condition of the client.
On a companys balance sheet, accounts receivable is the amount that customers owe to that company. Sometimes called trade receivables, they are classified as current assets assuming that they are due within one year. To record a journal entry for a sale on account, one must debit a receivable and credit a revenue account. When the customer pays off their accounts, one debits cash and credits the receivable in the journal entry. The ending balance on the trial balance sheet for accounts receivable is always debit.
Business organizations which have become too large to perform such tasks by hand (or small ones that could but prefer not to do them by hand) will generally use accounting software on a computer to perform this tas read more at » http://en.wikipedia.org/wiki/Accounts+receivable
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