The end of the financial year is a busy period for business owners and their accountants. There are numerous monetary aspects of a business that need to be closed and reconciled in order to provide a fresh start to the forthcoming year.
Accounts receivables is one of the most important elements in your business because it likely provides a significant portion of your total income. Accounts receivable refers to the outstanding amounts of revenue owed by customers for products purchased. Since payment for goods and services is not received at the moment of the original transaction, accounts receivables cannot be effectively used by a business until the client or customer actually pays.
Furthermore, tracking and chasing outstanding payments can be a time consuming procedure and if you have neglected it over the course of the financial year, you could have great difficulty come year end.
QuickBooks small-business financial software is an excellent tool for keeping track of accounts receivables and ensuring that your customers or clients are invoiced correctly. Browse our selection of accounting software and choose the package that is best suited to your company’s accounting needs.
Diligently keep track of your accounts receivables
As with most things in life, neglecting your accounting processes until the end of the financial year will cause you a great amount of unnecessary stress. The best way to prevent yourself from feeling overwhelmed by your accounts receivables is to record them diligently over the course of the financial year as well as invoice your customers and clients in good time.
Write off bad accounts receivables
While many customers pay their accounts on time every month, every business is plagued with a number of customers who don’t pay their accounts in a timely fashion, as well as some who don’t pay them at all. There are numerous methods that can encourage customers to pay their outstanding accounts, such as discounts on early payment. However, even with such tactics implemented, some debts will have to be written off.
It is important to remember that even though writing off bad accounts can be beneficial to your business with regards to tax, receiving the outstanding money is far more beneficial. So before writing off bad accounts, be absolutely sure that you are unable to obtain the money from your customer.
Implement an effective accounting solution
QuickBooks specialises in providing small-to-medium businesses with the financial tools to help them to succeed. Our selection of accounting software offers effective solutions for monitoring accounts receivables as well as all other financial aspects that accompany the running of a business.
Peruse our accounting software packages for detailed information on the features of our QuickBooks Pro, QuickBooks SimpleStart and QuickBooks Premier options.