{"id":4819,"date":"2014-03-14T07:39:10","date_gmt":"2014-03-14T05:39:10","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4819"},"modified":"2014-03-09T07:39:49","modified_gmt":"2014-03-09T05:39:49","slug":"does-confirming-a-balance-confirm-also-its-collectability","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/does-confirming-a-balance-confirm-also-its-collectability\/","title":{"rendered":"Does confirming a balance confirm also its collectability?"},"content":{"rendered":"

Yes and no I would say. It confirms you have a balance due from the client, so that\u2019s something, but whether the client is able or willing to pay, is another story.<\/span><\/span><\/span><\/p>\n

What a confirmation gives you is grounds to have the balance in the first place so there\u2019s that. You have the right to recognize the receivable balance and it\u2019s something you\u2019re owed to. By all accounts your client should therefore also pay up, i.e. it\u2019s collectable. You have an asset you have the right to in your accounts and rightfully so.\u00a0<\/span><\/span><\/span><\/p>\n

However, whether the balance is of any value, is another matter. Value of a receivable is normally assessed based on it\u2019s recoverability or collectability if you will. Question \u201cwill I be paid what I am owed\u201d is asked and the answer to that gives you the indication whether the receivable is of any value.<\/span><\/span><\/span><\/p>\n

If the answer is less than probable, you have reasons to consider this balance as \u201cnot collectable\u201d and write it down or off the balance sheet. However, if it is more than probable, leave it as it is. If it\u2019s something in between, maybe consider partial write-down? It is hugely dependant on the case, but to answer to the first question, I would say that \u201cno, confirming a balance does not prove the balance is also collectable\u201d.<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Yes and no I would say. It confirms you have a balance due from the client, so that\u2019s something, but whether the client is able or willing to pay, is another story. What a confirmation gives you is grounds to have the balance in the first place so there\u2019s that. You have the right to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[],"class_list":["post-4819","post","type-post","status-publish","format-standard","hentry","category-1-17-accounts-receivable"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t