Account Receivable

As you learn more about the business world, you will encounter words that you may not be familiar with. Words such as “Accounts Receivable”. Which is very important, by the way. But don’t worry if you don’t know what it is exactly. We start by knowing nothing. All we have to do is to take time to learn things. Now let’s begin to understand the process of accounts receivable.

Understanding Accounts Receivable

Account receivable is the amount of money that a company will receive from the customers who purchased through credit. The credit period can range from a few days to months, or in some cases maybe a year.

Here’s an example:

Let’s say an online store enabled customers to pay for the ordered goods only when it arrives at their doorstep (cash on delivery). The total amount of the product (plus shipping fee if it’s not free) is the money that will be expecting in a few days in return. That’s an account receivable for you.

Installment payment for products or services falls under Accounts Receivable. 

Enabling a portion of a business’s products/services to be an account receivable for customers is a great idea to boost sales. Because it greatly encourages clients/customers to choose them over their competitors. And there are a lot of ways to do this aside from the given examples.

How to Setup a Receivable Process

Now that you have a better understanding of accounts receivable, you may be wondering how you can set it up for your business. Here are four main steps:

Establish a Credit Process

Once you determine how much of your goods you want to be on credit, you also need to know if you will offer it to individual customers or only to other businesses (i.e. for a wholesale deal). After that, formulate a form of accounts receivable like cash on delivery, installment, pay later (after couple of days, months, years), etc.  Next, set a standard of credit-worthiness, requirements, establish terms and conditions, and clearly communicate interest rates (ensure compliance with Federal law).

It is not advisable for small businesses due to their low cash flow and low capital to offer goods on credit for a longer period. On the other hand, large businesses can do that and could also put reasonable interest rates depending on the payment period.

Setup a Receivable Invoice

An invoice can be a physical or electronic document that is given to the buyer after a sale. Your receivable invoice should detail the products or services that have been rendered, its costs, and the date of expected payment or due. And it should be given right away. Businesses nowadays also gave options to their clients whether they want an electronic or a physical invoice.

Track your Accounts Receivable

For startups or small companies, tracking accounts receivable are usually done through manual tracking. Tools such as Excel or other spreadsheets. After all, they just need to record when the invoice was made and sent, and when the payment has been received. Large companies, on the other hand, may need an officer to do this like a professional accountant. As it differs when there are too many accounts to handle and too many processes are offered.

Accounting

Lastly, establish journal entries for unpaid debts, bad debts, and early payment discounts to monitor cash flow.

Now, this is just the main steps, there could be more depending on your process. Also, keep in mind that technology nowadays keeps making things easier. Accounting programs are available online to give you ease with the receivable process. 

See Also: TRACK BUSINESS EXPENSES

Social Share:

sbobet 88

Slot Deposit Pulsa 10k

Slot Deposit

Slot Server Luar

Daftar SBOBET

Situs Judi Slot Terbaik dan Terpercaya No 1

Slot Deposit Pulsa

Casino Online Uang Asli

daftar sbobet

Slot Bonus New Member 100

Slot Deposit Dana

Akun Pro Thailand

RTP Slot Gacor Hari Ini

Slot Deposit Via Pulsa

RTP Slot Gacor

Slot Deposit Dana

daftar sbobet

Akun Pro Kamboja

Slot Online Deposit Pulsa

agen sbobet

Slot Deposit Ovo

RTP Slot Pragmatic Tertinggi Hari Ini

RTP Slot Hari Ini

sbobet88

Slot Deposit Via Dana

Depo 50 Bonus 50

Depo 50 Bonus 50

RTP Live

Live Casino

Depo 50 Bonus 50

SBOBET

Slot Deposit Pulsa 10rb

RTP Slot

RTP Slot

Bonus New Member

Slot Bonus New Member 100 di Awal

Bocoran RTP Slot Gacor Hari Ini

Slot Deposit Via Dana 10rb

sbobet 88

RTP Slot Tertinggi

depo 50 bonus 50

sbobet 88

Depo 50 Bonus 50

Slot Deposit OVO

RTP Live Pragmatic

RTP Slot Pragmatic Tertinggi Hari Ini

Slot Gacor Terbaru

Judi Roulette Online

Slot Online Deposit DANA

RTP Slot Tertinggi

Slot Gacor Terbaru

RTP Slot

Slot Deposit Via Dana 10rb

Slot Bonus New Member 100 di Awal

Judi Bola Online

RTP Slot Pragmatic

RTP Slot Pragmatic Tertinggi Hari Ini

Slot Deposit Via Dana 10rb

RTP Slot

Slot Bonus New Member 100 di Awal

Slot Gacor

Slot Deposit Via Dana 10rb

sbobet 88

RTP Live

Slot Gacor Terbaru

RTP Slot Tertinggi

RTP Slot Pragmatic Tertinggi Hari Ini

Slot Deposit Via Dana 10rb

sbobet 88

Bocoran RTP Slot Gacor Hari Ini

Slot Bonus New Member 100 di Awal

Slot Gacor Terbaru

Slot Deposit

RTP Slot Tertinggi

Rolet Online

Roulette

RTP Live Pragmatic

Bakarat Online

RTP Slot Gacor

Slot Bonus New Member 100 di Awal

RTP Live Pragmatic

Bonus New Member

Slot Gacor Terbaru

Slot Deposit

RTP Slot Tertinggi

slot online

slot online

RTP Live Pragmatic

slot online

Slot Deposit

Roulette

Depo 25 Bonus 25

Slot Gacor Terbaru

Roulette

Slot Gacor Gampang Menang

Slot Bonus New Member 100 di Awal

Agen Roulette Online

Slot Deposit Via Dana 10rb

slot tergacor

Agen Roulette Online

Slot Deposit Via Dana 10rb

sbobet 88

Slot Gacor Terpercaya

Slot Gacor Terpercaya

slot gampang jackpot

Akun Pro Kamboja

Judi Bola Online

Agen Casino Online

Agen Casino Online

sbobet 88

Slot Deposit Via Dana 10rb

Slot Deposit

slot gacor gampang menang

Casino Online Uang Asli

Bakarat

Slot Deposit

Casino Online Uang Asli

Depo 25 Bonus 25

Slot Bonus New Member 100 di Awal

Agen Roulette Online

slot gacor gampang menang

sbobet 88

RTP Slot

Slot Gacor Terpercaya

Agen Casino Online

RTP Slot Pragmatic Tertinggi Hari Ini

Slot Deposit Via Dana 10rb

Slot Deposit Via Dana 10rb

Slot Gacor Hari ini

slot gacor gampang menang

Agen Roulette Online

RTP Slot Tertinggi

Agen Roulette Online

Slot Bonus New Member 100 di Awal

Depo 25 Bonus 25

slot Gacor Terbaru

slot gacor gampang menang

Judi Bola

Slot Online Bonus New Member

Slot Gacor Online

Situs Judi Bola

Depo 25 Bonus 25

Slot Online Bonus New Member

Slot Gacor Resmi

Slot Gacor Gampang Menang

Slot

situs slot gacor

slot gacor

IDNPLAY

Situs Judi Bola

slot gacor 2023

situs slot gacor

Situs Slot Gacor

Slot Gacor Hari Ini

Slot Bonus New Member 100 di Awal

Slot Deposit Via Pulsa 10rb

Slot Gacor Maxwin

Situs Slot Gacor

slot resmi

situs slot gacor

Slot Deposit Via Dana 10rb

Situs Slot Resmi

Slot Gacor Hari Ini

Slot Gacor Hari Ini

slot gacor gampang menang

slot gacor

IDNPLAY

Situs Slot IDN

Situs IDN Slot Terpercaya

Daftar Poker Online

IDNPLAY

togel toto macau

agen poker online

idn poker online

Situs SBOBET

Slot Bet 500

idn play

idn play

Depo 25 Bonus 25

Situs IDN Slot Terpercaya

IDNPLAY

IDNPLAY

Situs SBOBET

Situs Slot IDN

Situs IDN Slot Terpercaya

Link Alternatif SBOBET

poker idn

poker idn

daftar poker online

daftar poker online

slot bonus

Situs Slot IDN

Situs SBOBET

Situs IDN Slot

poker

poker

Depo 25 Bonus 25

Slot777 Link Alternatif

togel hongkong

capsa online

Situs Slot IDN

Slot Bet 500

poker

poker

Slot Bet Kecil

Situs IDN Slot Terpercaya

capsa online

togel toto macau

idn slot online

Slot Bet 500

Situs Slot IDN

idn slot gacor online

ceme online

Poker IDN

domino qq login

Poker IDN

Poker IDN

Situs IDN Slot Terpercaya

Link Alternatif SBOBET

IDN Slot Gacor

Slot 777

IDN Play

poker idn

poker idn

poker online

poker online

Situs Slot777

SLOT IDN

IDN Slot Gacor

Slot 777

Poker Online

Poker Online

poker online

poker online

SLOT IDN

Slot Bonus

IDN Play

IDN Slot Gacor

Slot 777

IDN Slot Gacor

poker online

poker online

Situs IDN Poker

Situs IDN Poker

SLOT IDN

SBOBET88

Slot 777

IDN Slot Gacor

Poker Online

Poker Online

idn play

SLOT IDN

Slot Bonus

Situs IDN Poker

Situs IDN Poker

Slot IDN

Slot Gacor Hari Ini

IDN Slot Gacor

Poker IDN

Poker IDN

Poker IDN

Poker IDN

Slot Bonus New Member

IDN SLOT GACOR

Slot IDN

Slot Gacor Hari Ini

IDN Poker Login

IDN Poker Login

IDN Slot Gacor

Idn Slot Gacor

Slot Bonus New Member

IDN Poker Login

IDN Poker Login

Slot IDN

Slot Gacor 777

IDN Poker Login

IDN Poker Login

Situs IDN Slot

IDN Poker Login

IDN Poker Login

Slot Bonus New Member

Idn Slot Gacor

Slot 777

Slot IDN

situs idn slot

IDN Poker Online

IDN Poker Online

IDN Poker Login

IDN Poker Login

Slot777 Gacor

Slot IDN

Slot Gacor Gampang Menang

Situs IDN Poker

Situs IDN Poker

IDN Poker Login

IDN Poker Login

situs IDN Slot

Slot Bonus New Member

Idn Slot Gacor

Login Sbobet

Agen Sbobet

IDN Poker Online

situs IDN Poker

IDN Slot Gacor

IDN Poker Login

IDN Poker Login

Link Alternatif Sbobet

Link Alternatif Sbobet

Poker

Slot88

IDN Poker Online

IDN Poker Online

IDN Slot Gacor

IDN Slot Gacor

Idn Slot Gacor

Slot Bonus New Member

Link Alternatif Sbobet

Slot Bonus New Member

IDN Poker

Ceme

Ceme

Ceme

Ceme

ceme online

ceme online

ceme online

ceme online

ceme online