Understanding Accounts Receivables (AR)

What are?accounts receivables?

“Accounts receivable (AR) is?the balance of money due?to a firm for goods or services delivered or used but not yet paid for by customers.?Accounts receivables?are listed on the balance sheet as a current asset. AR is any amount of money owed by customers for purchases made on credit.”?– Investopedia.com

Let’s simplify:

• who owes you
• how much do they owe you
• how long they have owed you.

?

In general, an AR table will look something like this:

1. The left-hand column is for customer names.
2. The top line shows the number of days the amount of money from the customer has been outstanding. Each day the amount is not paid it ages through the columns. Sometimes 1-30 days are referred to as “current”?
3. The far-right “total” column shows the total amount of money owed by the customer.
4. The bottom-line total shows the total amount owed to your business per age of days category for all customers.

?If you are supposed to be paid C.O.D (Cash on Delivery) but your A/R is showing that customers owe you money that has been outstanding for more than 1- 30 days, you have a problem. In theory, on a C.O.D basis, it shouldn’t even reach 1 day + but life happens and if you read the article?7 ways to increase the efficiency of customer payments,?then you will see how to get paid quicker by customers.

Account Receivables in Nagging Panda

The Accounts Receivable module in Nagging Panda Creator allows you to keep track of who owes you and how long they have owed you. It’s the standard, globally accepted, necessary summary for all businesses to keep track of monies owed to you by your customers.?

?It includes an aging summary broken down in the following brackets:

• 1 – 30 Days
• 31 – 60 Days
• 61 – 90 Days
• 91 – 120 Days
• 120 Days and older

Within the Account Receivables feature, you have the ability to download all outstanding customer aging. You can also view individual customers’ statements by clicking on the ‘View Statement’ button next to your customer’s name.?

Once you have clicked on view statement, you will see an overview of all invoices processed for your customer. You can then either choose to download a statement or email the statement to your customer by clicking on the download or send buttons on the top right-hand side of the screen.

Keep track of your business’s cash flow in one place!

For more information on account receivables, read more?here.

If you’re in the market for a system to help you create and manage your?accounts receivables, then Nagging Panda Creator is for you – Create invoices, quotes, credit notes, customer statements, and more!?Sign up?for our 45-day free trial today; No credit card required.??