Print Friendly, PDF & Email

We recommend that at every month end or at least once a quarter, you check your Accounts Payable and Receivable balances and verify that they are correct. If they are not – you could be under or overstating profits or losses, and you may not be accounting for VAT correctly.

If you are one of our clients – we will certainly ask you to do help us do this as part of our year-end review procedure.

AR Aged Payables _01

Accounts Receivable (AR)

Accounts Receivable (AR) – shows you the amount of money that your customers owe you. Keep this up to date on a daily basis and you will be able to chase over due accounts promptly and manage the cash coming in.

AR Aged Payables _07

Accounts Payable (AP)

Accounts Payable (AP) – will show you the balance owing to each supplier at the month end. Useful for cashflow management and planning – working out who you will need to pay and when.

AR Aged Payables _08

To drill into the accounts:

One of the most useful views is to look at your AP or AR reports by invoice. You can expand your view by clicking on the option to ‘Show Invoices’. Don’t forget to Update.

AR Aged Payables _02

If we wanted to look at Bayside in more detail, we can right-click on the hyperlink to the invoice and open it in a second tab.

AR Aged Payables _03

It’s quite useful to have several tabs open at the same time when you are looking at reports or investigating queries. In this instance I have Aged Payables open in one tab, the Supplier account open in another and I have the Bill in a third.

AR Aged Payables _04

Work through each Customer or Supplier investigating differences and allocating payments on account where possible. This will keep your Aged Payables and Receivables accounts in order.

Making Adjustments:

1. Allocating payments on account or credit notes 

Locate the payment on account that is to be allocated. Either open up in the same tab, or right click on it to open it in the second tab. (Useful if you are making multiple changes to an account) .

AR Aged Payables _09

Click on the option to allocate the credit and allocate to the appropriate invoice. If the Payment on Account is a very specific figure but does not clearly match, it may be worth checking for a missing invoice.

AR Aged Payables _10

2. Deleting duplicate invoices

It may be worth checking the references and the values on your bills, you may realise that Oops, you’ve duplicated an invoice.

You can right click on the invoice options to void them.

Wait! Before you go...

Sign up NOW and get immediate access to our 5 day Instant Profit Action Plan.

5 Steps in 5 days to bring more profit into your business.

More profit in your business means more cash in your pocket.

We do not separate content and promotion, so we consider your sign up to our updates as explicit consent to receive both. :-)

Woohoo! Check your inbox now!

Shares

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close