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Accounts receivable represent amounts of money owed to a company in the form of unpaid invoices or other debts. The best tips for recording accounts receivable transactions help a business to collect all money owed as soon as possible. Timely and consistent processing along with cross checking the entries recorded in different ledgers help to ensure accuracy and provide up-to-date accounts receivable amounts. Using a ledger or an accounting software program to record accounts receivable is a good way to stay on top of the latest information. Outsourcing the task of recording accounts receivable is an option for those who do not have the time or personnel to handle such tasks.
Always record sales and cash transactions in the appropriate journal as soon as they occur. In this journal, all sales are recorded in the credit column, and all payments made are recorded in the debit column. At the end of each day, the amounts of the sales listed in the journal's credit column will then be recorded in a separate accounts receivable ledger; this method should be used at the end of each month as well. Recording accounts receivable in this way provides an accurate record of what is owed both to the business and to the customer.
Keeping an accounts receivable ledger is another good tip to help maintain accuracy in recording accounts receivable transactions. Individual customer entries made in the sales and cash receipts journal should be posted to the customer ledgers at the end of every day. If recording these transactions by hand, all of these accounts receivable ledgers should be kept in the same binder. If using a software program for recording accounts receivable, these transactions will be recorded automatically. Using one of the many available accounting software programs is a good way to stay on top of accounts receivable transactions without all the tedious recording and reconciling between ledgers.
Another option for accurate and timely recording of accounts receivable transactions is to outsource the task to a company or organization that specializes in handling accounting duties. These companies handle all the tedious recording tasks and provide reports on a regular basis. Be sure to carefully check out any accounting or bookkeeping company before allowing them access to sensitive information. Consult local business organizations like the Better Business Bureau, and ask other business people to recommend a reliable and honest company.
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