Accounts Receivable
If your products or services are paid for at time of delivery, you will
not need an accounts receivable tracking system. However, if you provide
services or products for which people pay you at a later date, your
accounts receivable records keep track of what is owed to you
If your products or services are paid for at time of delivery, you will
not need an accounts receivable tracking system. However, if you provide
services or products for which people pay you at a later date, your
accounts receivable records keep track of what is owed to you. You can
monitor accounts receivable by holding on to a copy of all invoices sent
out or by keeping an accounts receivable record. Either way, the
information you need to capture includes: invoice date, invoice number,
invoice amount, terms, date paid, amount paid, and the name of the
entity being billed.Many software programs are available to help you
generate invoices and track hours and expenses incurred for each client.
These programs can save hours of time for a business owner and create
professional-looking invoices. But, according to Ed Slott, author of
"Your Tax Questions Answered", (Plymouth Press) keeping your accounts
receivable on computer is sensible if it enables you to collect payment
more quickly or get a better handle on where your money comes from.
Otherwise a paper system is very effective. Software programs that will
create invoices or track hours include: QuickInvoice by Intuit software;
Timeslips and WinInvoice by Good Software; and PerForm Pro Plus from
Delrina. |
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