Small Business Bookkeeping & Accounting

Small Business
Bookkeeping & Accounting

shpslogo.jpg (6992 bytes)

Accounts Receivable

Accounts Receivables and sales operate much the same as Accounts Payables and your purchases. Under the accrual method, you'll be entering sales as you earn them and invoice your customers. Have a simple chart that shows who owes you money each month - have a beginning balance which equals last months' ending balance. Enter any payments they've made or new charges they've incurred, and come up with an ending balance. That must equal the amount you list as AR on your books - if it doesn't, your task is to figure out where the discrepancy is.