Accounts Receivable

Accounts receivable 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. This is typically done in a one person organization by writing an invoice and mailing or delivering it to each customer.

On a company's balance sheet, accounts receivable is the amount that customers owe a business. Sometimes called trade receivables, they are classified as current assets. 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 credit the receivable in the journal entry. The ending balance on the trial balance sheet for accounts receivable is always debit. Well programmed accounting software will have a module called accounts receivable in it.

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 task.

Associated accounting issues include recognizing accounts receivable, valuing accounts receivable, and disposing of accounts receivable.

The Accounting and Business Programs from AKNAF:

Businessware - Accounting Software
Agencyware - Manufacturer Rep Software
Advantage Salon Software - Salon Software
Advantage Spa Software - Spa Software
Retail Advantage - Point of Sale Software
Cafe Advantage - Restaurant Software

Accounts receivable departments use the Sales Ledger

Other types of accounting transactions include accounts payable, payroll, and trial balance. Aknaf Software Inc. designs accounting software that includes modules for accounts receivable, accounts payable, point of sale software, payroll, general ledger combined with other management software like customer service, crm, sales automation and scheduling.

Since not all customer debts will be collected, businesses typically record an allowance for bad debts which is subtracted from total accounts receivable. When accounts receivable are not paid, some companies turn them over to collection agencies. However, many debtors still do not pay; in those cases, some creditors turn to collection attorneys.

The Advantage Salon Software and Spa Software includes charge to account and accounts receivable options. It is user friendly software and can be used as: