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Since the Accounts, Receivable aging summary is such an important tool to businesses says Edmonton bookkeeping, not only is it important that an entrepreneur knows how to read the report and use the information in their business, but they should also learn what they need to do to verify the accuracy of the information in it so that they can be confident in using the summary effectively in their business.

In order for an entrepreneur to be able to catch errors on their Accounts Receivable aging summary, they need to be very familiar with how it looks, and they should get into the habit of reviewing it regularly so that it becomes second nature to catch mistakes. Edmonton bookkeeping says that one way that an entrepreneur can review their summary to catch errors is to look for any negative numbers that may exist on the summary. As they generate invoices in their business, this shows up on their AR summary as a positive number. When a client makes a payment, that payment shows up as a negative number and the two sums cancel each other out. Therefore, if a business owner sees a negative number on the report that has not already canceled out a positive one, that could potentially mean that a customer has paid a deposit or overpaid an invoice. A business owner can easily verify if that has been the case, and if not, they can ensure that it is a mistake that needs to be fixed.

How an entrepreneur might fix the mistake of the negative numbers we have on their Accounts Receivable aging summary says Edmonton bookkeeping, is by going into QuickBooks, and seeing if they have entered the payment into the software, but forgot to apply it to the invoice. By doing this, business owners can ensure the accuracy of their reports.

Another way that entrepreneurs can ensure the accuracy of their Accounts Receivable aging summary, is by ensuring that all of the amounts in the summary relates to actual customers. There may be other amounts that are accidentally added to this report, such as shareholder amounts, payroll or Canada revenue agency overpayments. If an entrepreneur reviews all of the customers on the list, and sees that there is anything other than a customer name there, they should be certain that it is an error, that they can remove. By ensuring they remove it from the Accounts Receivable aging summary, and have their accountant or Edmonton bookkeeper put it back onto the report that it needs to be on, not only can help the AR summary be more accurate, but the rest of their financial statements be more accurate as well.

By ensuring the accuracy of their Accounts Receivable aging summary, business owners can be confident that the information on it is accurate, that it can be used very confidently to collect money from their clients so that they can stay cash flow positive in their business in order to meet their own financial obligations.

Edmonton Bookkeeping | Ensuring The Accuracy Of Accounts Receivable Reports

When entrepreneurs generate invoices in their business, they will have an Accounts Receivable aging summary says Edmonton bookkeeping that can help them ensure that their clients are efficiently paying their invoices, and paying them on time. However, if there are errors in that Accounts Receivable aging summary, the ability to use it effectively can be compromised. If entrepreneurs understand how to minimize errors on this report, they can be more confident in contacting their clients and asking them to pay their outstanding invoices.

When way that business owners can ensure that their Accounts Receivable aging summary is as accurate as possible, is by ensuring that they are removing any uncollectible receivables often. Edmonton bookkeeping says that while business owners should work very proactively in their business to ensure that they do not have any clients that do not pay invoices, a business owner also needs to understand that as soon they are certain they are not going to be able to collect on that debt, they need to have it removed from their Accounts Receivable aging summary. This way, when they look at the grand total at the bottom of their AR report, they can be certain that the amount represents all of the money that they are actually expecting to receive in their business. That way, they can use the information to understand not only how much money they are expecting to bring into their business, that if they need to increase their marketing efforts as well.

Another way that entrepreneurs can ensure that all of the information in their Accounts Receivable aging summary is accurate, is paying close attention to if there is any negative numbers that exist on their Accounts Receivable summary. Edmonton bookkeeping says that this does not necessarily mean that there is a mistake, the negative number generally indicates a payment. If it has not already canceled out an outstanding amount, a business owner should check the records to verify that a client has not either pay to deposits or overpaid an invoice. If this is not the case, a business owner should go into their accounting software to verify that the amount has been entered properly. Typically, if the payment has been made, but not apply to an invoice, it could show up on the Accounts Receivable aging summary as a negative number. By ensuring this mistake is fixed, entrepreneurs can verify the accuracy of their Accounts Receivable aging summary.

Edmonton bookkeeping says that once a business owner has verified the accuracy of their accounts receivable aging summary, then they can be very confident in sending out statements on a regular basis to their clients, to help encourage them to pay the outstanding amounts. By being confident in the accuracy of the reports, along with a proactive collection protocol, can help ensure that business owners are bringing the money in their business that they need in order to help their business be successful and grow.