What is Account Receivable (AR)?
Account receivable refers to the amount owed to you by your customers. This amount represents the cash flow or money held up in unpaid bills. Many companies appoint professional accounting services providers for the task. They review your cash account and advise on your business's current financial status.
Account Receivable is Vital for Healthy Cash Flow
Bookkeeping and accounting services providers, like GRO IT Solutions, do the data entry and record your invoices using accounting software. It is an essential task as there are chances that you may forget the transaction. Failing to collect your dues leads to loss.
If you are not careful with your AR, it can easily break your business as it reduces the cash in your hand. Accountants working for your providers ensure liquidity in your business.
How Account Receivable Payments Work
Not every client pays cash for the goods or services at the time of purchase. Some ask for a credit line. When you agree to do so, you send them the invoice for the purchased items and payment terms to intimate when you expect payments.
Our accountant helps you track these payments. They do the data entry using accounting software and keep the data updated. It is time-consuming, especially when you have a healthy transaction volume.
The digitised data is easy to track. When your clients make payments, our accountant debits your accounts receivable and credits your cash accounts to reflect it.
They use accounting software to generate accounts receivable ageing reports regularly. The report shows your unpaid invoices. With such a list in your hand, you have a chance to communicate with the offenders and discuss new credit and payment terms or late fees. It is an efficient way of streamlining your business' cash flow.
Account Receivable Services
You can expect the following accounts receivable services from us:
- Preparing and mailing invoices
- Record and account for revenue
- Entering invoices into the accounting software
- Preparing financial statements
- Sending credit notes
- Updating appropriate receivables ledger
- Updating customer accounts
- Preparing AR reports
- AR deductions management services
- Adjusting process after customer approval
Accounting services use AR to calculate your business' income and profitability. They use it as an indicator of your business' financial health. Tracking of business' AR comes in handy as proof of income when it is time to pay taxes.
We use Zoho, Snoww Books, Netsuite, Xero, MYOB, or Quickbooks for your accounts receivable management. Please email us at contact@grogroup.co.in for our accounting services fees and packages.