Accounts receivable It is one of the accounts that you must keep in the accounting of your company, regardless of whether it is an SME, a large company or a micro-SME.
For this reason it is necessary that you know exactly what they are, including those for clients, long-term ones, vacancies, what your objective is, how you can keep this account in Excel, if there is a program that makes it easier for you to keep this account and also everything you need to know about accounts payable, because you will find all this below …
What are accounts receivable for?
The accounts receivable As part of the current assets of the balance sheet, it is used to record all the amount of money that customers owe you for the purchases they made on credit.
What are accounts receivable?
You understand what are accounts receivable, as they are the debts contracted by your clients for the purchase of your services or goods on credit, which translates into a long-term or short-term debt.
For example, when you sell your merchandise, you will issue an invoice to your client, then this client will incur a debt if the purchase was made on credit, because that debt was not paid at the time of purchase, for which you have the right to collect it according to the term you gave it and in your accounting books you will record it in accounts receivable.
In fact, you have sold him on credit, which can be long or short term, since it will be short term if the collection date is less than one year and if the payment date is more than one year it will be long term.
Why register accounts receivable accounting and their classification
The accounts receivable accounting It is an essential task because it is the best way for you to keep track of your business transactions and it is even the best way for collection management to be operational and to maintain the correct financial stability of your company.
Regarding the classification of accounts receivable, you can be guided by the following criteria:
- The commercial ones where you will group the charges that are pending and that have to do with the provision of services or sale of goods that are part of the economic activity of your company.
- Others group those that relate to pending charges for products or services that are eventual and do not correspond to the main activity of your company.
- The internal ones are those that correspond to loans or deliveries that you gave to your collaborators and that are owed to you and are governed by a period of time that you determine.
- The short-term ones that are those that correspond to those that you negotiated to be covered after 30 days but that do not exceed one year of repayment.
What are accounts payable?
You know what are accounts payable, because on the contrary to the previous ones are those that your company owes to suppliers and creditors for the purchase of services and goods.
They represent an obligation of your company, since they are the credits that you obtained and that have nothing to do with a debt to a bank, that is, they are accounts that originated when your company bought goods or services and were not immediately canceled then You will register this account in the ledger and cancel it in the time you have agreed.
For example, suppose your company sells merchandise for $ 10,000, you receive $ 5,000 in cash, and you will collect the rest in 60 days. Then you will register in the Cash account $ 5000 and in the Clients account you will register $ 5000 and you will subtract in the Stock account the amount that you registered in the Clients and Cash account.
As the payment date approaches, you will remind the client that they must pay the outstanding amount.
Long-term accounts receivable
The long-term accounts receivable They are those that you agreed to for a term greater than one year and will generally generate interest because they originated as a financing that you granted for the purchase of goods. In addition, over time, they will become short-term and you will transfer it to Current Assets.
What is the role and requirements of vacant accounts receivable?
As part of the accounting department if you are interested in occupying a job position accounts receivable vacancies Your role will focus on managing customer collections according to the rules established by the company, for example through monitoring the portfolio assigned to you.
In general, you will be required to be an advanced accounting student or university bachelor with experience of at least 2 years in collections from corporate clients in addition to having command of Office tools and handling of delinquent clients.
Where to find Excel accounts receivable?
The accounts receivable Excel You can easily register them by downloading a template at aplicaexcelcontable, com.
Keep in mind that of the target receivables is that you can control and track the income of money for purchases made by your customers for purchases due in the future.
What is an accounts receivable program?
- A accounts receivable program is OracleNetSuite, a program that was designed for the cloud as a good option for a large or medium-sized company.
- Quick Books Enterprise and another program designed for the construction industry.
What are accounts receivable?
Did you understand what are accounts receivable, as they are enforceable rights arising from forward sales.
What are the accounts receivable?
You know what are the accounts receivable, for example:
- Accounts receivable working capital.
- Accounts receivable to current assets.
- Long-term receivables.
- Short-term accounts receivable.
What are the accounts receivable and payable?
Did you understand what are the accounts receivable and payable, because the accounts payable represent the debts of your company for the purchase of products. You will register them when an invoice is approved for payment in the General Ledger as a Liability.
Accounts receivable represent the collection rights of merchandise that you sold on time, you will record them in the Balance Sheet in Current Assets if they are short-term and in Fixed Assets if they are long-term.
What is the nature of accounts receivable?
You know what is the nature of the accounts receivable, as it is a debit account that is accounted for as from the purchase of goods on credit.
What are trade receivables?
You know what are trade accounts receivable, are representative of the collection rights of suppliers for the purchase of goods from your company.
What accounts receivable examplesSuppose you sold merchandise for $ 500 to a customer XXX, then in the accounting program you will create an entry like this:
Debit credit
Accounts receivable – customer XXX 500
Sale of goods 500
Later, when client XXX pays the debt, you will register the cancellation in this way:
Debit credit
Box 500
Accounts receivable – customer XXX 500