Accounts Receivable (AR) Explained.
Accounts receivable (AR) is the money a business is owed by customers for goods or services that have been delivered but not yet paid for. It's an asset on a company's balance sheet.
It's a legally enforceable claims for payment held by a business for goods supplied or services rendered that customers have ordered but not paid for.
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The Accounts Receivable Process
Receive Customer Orders
Customer places an order, approved by the business
Credit Assessment
Evaluate customer's creditworthiness if selling on credit
Invoice Creation
Generate and send invoices to customers
Collections Management
Monitor payments and follow up on overdue accounts
Payment Terms and Deadlines
1. Net 30
2. Net 60 or Net 90
3. Due upon receipt
4. Net 10 EOM
Best Practices for Accounts Payable
Built on integrity and expertise, our firm delivers exceptional personalized service that goes beyond standard accounting practices.
Clear Policies
Establish clear payment policies and procedures
Efficient Processes
Have a clear processes and system
Utilize Technology
Utilize technologies so as to streamline processes and have a stable system
Regular Review
Regularly make a full review on all the processes and system
Client's Testimonials.
Our clients' success stories speak volumes about our commitment to excellence and personalized service.
Wagner, Manufacturing CEO
Fiscal Integrity Group transformed our financial management. Their expertise in manufacturing accounting is unparalleled.
Kara, Small Business Owner
Their tax strategies saved us thousands. I can't recommend them enough for small businesses.
Robert & Mary K., Retirees
FIG's personal tax services have made our retirement planning so much easier and more profitable.
Book A Free Consultation
Drop us a line! We are here to answer your questions because the first step to hassle-free accounting, tax returns, and tax planning starts by reaching out to one of our representatives.