In bookkeeping and accounting, there are many technical terms which can make things sound more complicated than they need to be. Our goal is to demystify these terms so you can make sound decisions about your business. Today we are explaining Accounts Receivable.
Accounts Receivable is the term used to describe the time between when you send a customer your invoice and the time it takes for them to pay you. So “Receivable” means, you are waiting to receive money and “Accounts” refers to the invoice you send your customer.
The term “Accounts Receivable” also includes the processes you follow to collect the money customers owe you..
Your Accounts Receivable are an important asset of your business. They need to be monitored carefully because the faster your customers pay their invoices, the faster you can pay your suppliers and staff (if you have any).
For more information on how to get paid faster, see our blog titled 5 Tips to help you get paid on time.
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If you and your business are ready for help with managing your accounts, talk to the friendly and supportive team at Numeric Eight. We offer highly tailored bookkeeping services with the security of a fixed monthly fee. For more information, call 02 9437 1785 or email us.
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