January 18, 2018  
 
  Articles for Entrepreneurs  
 

Accounts Receivable

 

 
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Definition of Accounts Receivable

Accounts Receivable refers to what is owed to a business by customers as a result of a sale of goods or services on credit.
(Definition continues below)

Accounts receivables are evidenced by notes, statements, invoices or other written evidence of a present obligation.

You can evaluate the strength of a company by looking at how quickly they collect on their receivables.

Accounts Receivable References On This Site

These Gaebler.com articles mention this glossary term:

  • Efficiency Ratios - The accounts receivable turnover ratio measures the effectiveness of a firm's...
  • Things An Accountant Can Help With - The accountant considers how much cash you will need to carry your accounts receivable, to increase inventory, to cover current invoices, to acquire...
  • Keeping Business Records Organized - According to experts in records management, businesses, associations and not-for-profits should permanently keep the following documents: Audit reports Board minutes Cancelled checks for special contracts, important payments, asset purchases and payment of taxes—keep each check with the appropriate documentation to explain the purchase Capital stock and bond records Cash books Charts of accounts Computer backups Constitution and bylaws Contracts and leases (those that are still in effect) Correspondence concerning legal and other important matters Deeds, bills of sale and mortgages Depreciation schedules Insurance records Minutes for directors’, stockholders’ and charter meetings Payroll records Property records, including blueprints and plans Retirement information, including IRA and Keogh contributions Stock and bond certificates—even the cancelled ones Tax returns Trademark, copyright and patent registration Year-end financial statements Year-end trial balances Keep 5–10 Years Accident reports or claims in settled cases Accounts payable ledgers and schedules Accounts receivable journals and schedules...
  • Customer Service Advice - For example, if your controller provides your accounts receivable employee with a list of tardy accounts, the accounts receivable employee is an internal customer of the controller. As...
  • Balance Sheet Interpretation Part IV: Current Assets - Current assets include cash, short and long-term investments, accounts receivable, marketable securities, inventories, and pre-paid expenses. When analyzing...
  • Efficiency Ratios - The accounts receivable turnover ratio measures the effectiveness of a firm's...
  • Developing a Comprehensive Recordkeeping System - You should also be generating monthly financial statements that include cash flow, accounts receivable, accounts payable, payroll, overall income statement and balance statement...
  • Keeping Business Records Organized - According to experts in records management, businesses, associations and not-for-profits should permanently keep the following documents: Audit reports Board minutes Cancelled checks for special contracts, important payments, asset purchases and payment of taxes—keep each check with the appropriate documentation to explain the purchase Capital stock and bond records Cash books Charts of accounts Computer backups Constitution and bylaws Contracts and leases (those that are still in effect) Correspondence concerning legal and other important matters Deeds, bills of sale and mortgages Depreciation schedules Insurance records Minutes for directors’, stockholders’ and charter meetings Payroll records Property records, including blueprints and plans Retirement information, including IRA and Keogh contributions Stock and bond certificates—even the cancelled ones Tax returns Trademark, copyright and patent registration Year-end financial statements Year-end trial balances Keep 5–10 Years Accident reports or claims in settled cases Accounts payable ledgers and schedules Accounts receivable journals and schedules...
  • Obtaining Funding From a Venture Capitalist - Here are the important documents investors review, according to advice by experts David and Laura Gladstone: Audited financial statements since inception Income statements, balance sheets, cash flow statements Records of all changes in equity position Accounting methods and practices Company-prepared monthly or quarterly statements A three-year budget and financial projections A complete and current business plan Accounts receivable aging and accounts payable aging...
  • Balance Sheets - This can include: cash cash equivalents investments accounts receivable...
  • Accounting Terminology for Entrepreneurs: A - Account receivable is often simply referred to as "receivables" or "A/R". It is a current asset and could be found...
  • Accounting Terminology for Entrepreneurs: P-Z - Tangible assets are assets that have a physical or financial existence such as cash, accounts receivable, inventory, land, etc...
  • Developing a Comprehensive Recordkeeping System - You should also be generating monthly financial statements that include cash flow, accounts receivable, accounts payable, payroll, overall income statement and balance statement...
  • Balance Sheets - This can include: cash cash equivalents investments accounts receivable...
  • Accounting Terminology for Entrepreneurs: A - Account receivable is often simply referred to as "receivables" or "A/R". It is a current asset and could be found...
  • Accounting Terminology for Entrepreneurs: B, C - Examples of current assets are accounts receivable, cash, cash equivalents (money market holdings, liquid securities, etc...
  • Liquidity Ratios - This includes cash, accounts receivable, market securities, prepaid expenses, and other various liquid assets...
  • Web Tools for Small Business Finances - Enables small businesses that need to increase their working capital or liquidity immediately to do so by auctioning their current account receivables and getting converting their A/R’s into cash immediately...
  • Things An Accountant Can Help With - The accountant considers how much cash you will need to carry your accounts receivable, to increase inventory, to cover current invoices, to acquire...
  • Accounting Terminology for Entrepreneurs: P-Z - Tangible assets are assets that have a physical or financial existence such as cash, accounts receivable, inventory, land, etc...
  • How Much Should I Borrow to Start a Business? - Once your company starts making a profit, you’ll have many more options available such as a credit line secured by your company’s accounts receivable (the money that your customers owe you but have...
  • Small Business Budgeting - For a cash-basis budget, income will include any payments you receive from sales, accounts receivable, interest, dividends, or virtually any other source...
  • Obtaining Funding From a Venture Capitalist - Here are the important documents investors review, according to advice by experts David and Laura Gladstone: Audited financial statements since inception Income statements, balance sheets, cash flow statements Records of all changes in equity position Accounting methods and practices Company-prepared monthly or quarterly statements A three-year budget and financial projections A complete and current business plan Accounts receivable aging and accounts payable aging...
  • Customer Service Advice - For example, if your controller provides your accounts receivable employee with a list of tardy accounts, the accounts receivable employee is an internal customer of the controller. As...
  • How Much Should I Borrow to Start a Business? - Once your company starts making a profit, you’ll have many more options available such as a credit line secured by your company’s accounts receivable (the money that your customers owe you but have...
  • Web Tools for Small Business Finances - Enables small businesses that need to increase their working capital or liquidity immediately to do so by auctioning their current account receivables and getting converting their A/R’s into cash immediately...
  • Small Business Budgeting - For a cash-basis budget, income will include any payments you receive from sales, accounts receivable, interest, dividends, or virtually any other source...
  • Accounting Terminology for Entrepreneurs: B, C - Examples of current assets are accounts receivable, cash, cash equivalents (money market holdings, liquid securities, etc...
  • Balance Sheet Interpretation Part IV: Current Assets - Current assets include cash, short and long-term investments, accounts receivable, marketable securities, inventories, and pre-paid expenses. When analyzing...
  • Liquidity Ratios - This includes cash, accounts receivable, market securities, prepaid expenses, and other various liquid assets...

 

 

 

Additional Resources for Entrepreneurs

Search Engine Marketing

Social Marketing Optimization

Business Forms

Business in the Jungle - Business in Fiction - Negotiating

Radio Ad Costs

Newspaper Advertising Rates

City-Specific Resources for Entrepreneurs

Small Business Insurance

Global Entrepreneurship

China & Entrepreneurs