Accounts Receivable means…
…is the amount owed to the firm by customers in the form of regular accounts for sale of goods or services rendered. It is normal to prepare a list of accounts receivable or sundry debtors at the end of each reporting period, eg weekly or monthly. Some businesses also prepare an Aged Analysis that shows the time period that the debt has been outstanding to your business, normally shown as 30 days, 60 days, 90 days, 120 days and over. Monitoring of Accounts Receivable (Sundry Debtors) is an activity that should take place at least weekly and should be reviewed by senior management.
WHAT’S IT MEAN? Quickies
This post is part of the “What’s it Mean?” series of short and sweet responses.
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Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
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