{"id":4389,"date":"2013-08-21T06:53:03","date_gmt":"2013-08-21T04:53:03","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4389"},"modified":"2013-08-18T06:53:48","modified_gmt":"2013-08-18T04:53:48","slug":"how-do-you-treat-accounts-receivable","status":"publish","type":"post","link":"https:\/\/www.officetodo.com\/public\/how-do-you-treat-accounts-receivable\/","title":{"rendered":"How do you treat Accounts Receivable?"},"content":{"rendered":"<div>\n<p>Accounts receivable on your balance sheet are more or less your main asset. Well, obviously your cash and bank accounts are fairly close too, but as receivables are direct result from your sales revenue, they are to be treated with utmost accuracy and care \u2013 have the amounts correct, due dates monitored and clients kept happy and satisfied. It\u2019s all what receivables are about.\u00a0<!--more--><\/p>\n<p>In accounting, simply put, you\u2019d treat your receivables in their cost less any allowances. \u201cCost\u201d is their face value as it was given on the invoice (note that it includes all the possible discounts given). That\u2019s the amount you want to receive from your client for the goods and \/ or services sold. An \u201callowance\u201d is a write-off done to a receivable balance based on any doubt you have regarding its collectability. Normally you wouldn\u2019t have an allowance recognized for a receivable balance, but under some circumstances the clients may go into bankruptcy or just face financial difficulties up to an extent that they may not pay the full amounts.<\/p>\n<\/div>\n<p>Outside of accounting receivables are to be kept under close observation with the most important aspect being payments done on time. Receiving money \u201con time\u201d means that you get funds to pay your suppliers, your employees and yourself. You also get to buy goods that you can sell. You need money to keep on doing business and as such monitoring the due dates, reminding clients of them and being strict with them ensure you have better odds in keeping your business running.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Accounts receivable on your balance sheet are more or less your main asset. Well, obviously your cash and bank accounts are fairly close too, but as receivables are direct result from your sales revenue, they are to be treated with utmost accuracy and care \u2013 have the amounts correct, due dates monitored and clients kept [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,69],"tags":[],"class_list":["post-4389","post","type-post","status-publish","format-standard","hentry","category-1-basic-accounting","category-1-17-accounts-receivable"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4389"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4389\/revisions"}],"predecessor-version":[{"id":4390,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4389\/revisions\/4390"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}