Accounts Receivable

Accounts Receivable

When you first set up your business, you also have to set up your bookkeeping system. Even if you have experience doing bookkeeping yourself, running a business while also keeping track of all your financial activities is difficult. The easiest way to keep track of your records while you run your business is to hand the task over to a bookkeeper here at Ottawa Bookkeeping.

Bookkeeping and record-keeping are used interchangeably, but the truth of the matter is that there are many different categories when it comes to bookkeeping, and each category plays an important role when managing a business. One of the most important categories is the accounts receivable.

No matter the size of the business or how long a business has been running, every business keeps a keen eye on their accounts receivable. Accounts receivable keeps track of the money that is owed to the company and is proof of a company’s hard work. It does not indicate the end profit, but it determines how well the company generates money. A company’s accounts receivable is an important asset, and when it comes time to prepare taxes, the information provided from the accounts receivable ledger helps determine the amount of money the business made. And with the accounts receivable being so important, it must be kept highly accurate. To ensure this, a professional bookkeeper must be hired so that the receivables are properly tracked and entered into the accounts receivable ledger.

When you first start a business, it can be relatively easy to remember who owes your company money for services or products, but as the business grows quickly, it will become harder and harder to track what the business is owed without proper record keeping. You may check how much gross sales you made by going through purchase orders at the end of the day, but to get the big picture of how well the company is doing, data on the accounts receivable should be tracked on a weekly or monthly basis.

Have a bookkeeper from Ottawa Bookkeeping help you out with any of your record-tracking needs! As your business grows, our accountant will help relieve the burden of bookkeeping for you so that you can focus on company growth and prosperity!