Get Paid On TimeAccounts
Receivable
Find out how accounts receivable outsourcing works and how our team of experts at Bookkeeping Unlimited can help you get paid faster.
You need to get paid on time so your company can meet its cash flow goals. But getting paid on time can be hard if you don’t have an effective accounts receivable process in place.
When you hire Bookkeeping Unlimited to manage your receivables, you’ll get paid faster because we implement proven processes to improve your collection rates and increase invoice processing rates. We provide the expertise you need to optimize your accounts receivable process so you get paid on time.
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What is Accounts Receivable?
Any money your customers or clients owe you for the goods or services they purchased from you is considered your accounts receivable. It’s a way of tracking your sales if people pay you via invoice.
Accounts receivable represent the money your customers or clients owe you. Since it is expected that they will be paying you the money they owe you in the next few weeks, accounts receivable are recorded as an asset on your company’s balance sheet. They are not recorded as revenue.
Accounts receivable are part of accrual basis accounting, which is explained further here. A short summary of how accounts receivable work in accrual basis accounting is this: In accrual basis accounting, we record the transaction whether or not the cash has been received. When you make a sale or provide a service to your client that will be paid later, you create an invoice. Then, an entry is created in your books to credit the sales account and debit the accounts receivable account. Once you’ve been paid, your books will be updated to credit your accounts receivable account.
Accounts receivable represent the money your customers or clients owe you. Since it is expected that they will be paying you the money they owe you in the next few weeks, accounts receivable are recorded as an asset on your company’s balance sheet. They are not recorded as revenue.
Accounts receivable are part of accrual basis accounting, which is explained further here. A short summary of how accounts receivable work in accrual basis accounting is this: In accrual basis accounting, we record the transaction whether or not the cash has been received. When you make a sale or provide a service to your client that will be paid later, you create an invoice. Then, an entry is created in your books to credit the sales account and debit the accounts receivable account. Once you’ve been paid, your books will be updated to credit your accounts receivable account.
Why Should You Outsource Your Accounts Receivable?
For many business owners, outsourcing your accounts receivable is the most cost-effective and time-saving solution.
Getting clients and customers to pay you for the goods or services they purchased from you can sometimes take time. Some clients or customers pay their invoices late. Some aren’t paying their invoices at all. That means you, or someone in your office has to take time away from a revenue-producing activity and spend time and money getting that invoice paid.
Under accrual basis accounting, we record revenue at the same time we record the account receivable. Once the payment is received, the accounts are reconciled.
We track your late payments, bad debt expenses, manage allowances for uncollectible accounts, and your accounts receivable turnover ratio as part of handling your accounts receivable.
What are Other Receivables?
In addition to your accounts receivable, you may also have other receivables. These may include
- Interest receivable
- Income tax receivable
- Insurance claims receivable
- Receivables from employees
Generally, these other receivables are the result of transactions conducted outside the normal scope of your business. These are just as important to track in your accounts receivable, as you are expecting to be paid or reimbursed for these transactions.
Ultimately, when you hire us to manage your accounts receivable, we will work with you to make sure your invoices are getting paid. From setting sound payment terms and conditions to creating financial incentives so people pay their invoices more quickly, we help you get paid. Find out more about how we can help you get paid faster.
How Bookkeeping Unlimited Makes Sure Your Accounts Receivable is Always in Compliance
We build compliance into every step of every process of your Accounts Receivable system.
It’s cheaper, faster, and safer to have our team build proper compliance into your accounts receivable system than it is to try and go back and fix problems down the road.
Most embezzlement happens at small businesses, but when you have effective compliance built into your Accounts Receivable system, you have the oversight and tools to prevent employees from stealing from you.
Every business is different, which is why we work with you to create effective internal controls and compliance processes that streamline and protect your accounts receivables system. At Bookkeeping Unlimited, we see compliance as a way to make sure your systems and processes are running smoothly so that you can focus on growing your business.
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Tracy DeFatta is absolutely trustworthy and reliable. Bookkeeping Unlimited truly delivers.
Andrew Sher, Founder of the Sher Law Firm
Tracy is always on top of deadlines for any required projects, but especially for all of the various required tax filings for my companies. I would highly recommend Tracy and her company to anyone who needs not only a bookkeeper, but a trusted financial partner!
Andrew Pikoff, J.D., The Pikoff Team
I’ve changed CPAs quite a few times during the years I have been in business, but I have stuck with Bookkeeping Unlimited for the high level of service. The staff is so friendly and I often have last minute emergencies they are always willing to handle. Besides the fact that every CPA I have used loves them, they have been available to help me with other business issues I could not have handled myself. Whether it be with a government audit, unemployment insurance issues or just some simple advice, they are always available to help.
Lizzie Oretsky, Fundamentally Music, Inc.
Why I have continued to trust with intimate business details and work with Tracy DeFatta, Bookkeeping Unlimited, now going on 14 years…
…she is consistent with her work production.
…she maintains her schedule regularly and has been flexible when I have needed to re-schedule.
…she is straight and to the point and doesn’t waste time.
…when she has made an error, she is prompt to admit, explain and correct.
…she will take the time to listen and make suggestions beyond the typical scope of the engagement.”
Walter Katz, The K Corporation
They save me at least 10 hours a week not having to worry about preparing checks and accounting for vendor invoices and client settlements.
Todd Riff, Riff Law Firm
Bookkeeping Unlimited is ‘big city smart’ and ‘small town friendly.’ They have been such an asset to my small business.
Lizzie Oretsky, Fundamentally Music, Inc.
Bookkeeping Unlimited handled my PPP application and forgiveness paperwork and saved me from hours of paperwork and having to pay a high hourly rate to my CPA. You won’t find a bookkeeping team with more reasonable fees than this one. Over the years, Bookkeeping Unlimited has been essential in helping me grow my business.
Lizzie Oretsky, Fundamentally Music, Inc.
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