Quick tips on cleaning up your Accounts Receivable

Wanting to get a jump on preparing for year end?  Here are a few suggestions on cleaning up your Accounts Receivable Aged Trial Balance before the year-end crunch begins:

  • Review your accounts receivable detail reports and confirm that all invoices listed are valid.  If any are not a receivable, then make sure you understand why they continue to be on the reports and correct those that don’t belong.
  • If an invoice was entered as taxed but the customer didn’t pay the sales tax, issue a credit memo for the original taxable invoice, then re-issue the invoice as non-taxable. Both the credit memo and the new invoice should be created in the same in the current sales tax period.
  • For partially-paid invoices whose balance will not be paid, issue a credit memo for the amount that will not be paid.  Apply the credit to the invoice in the Receive Payments window.
  • Clean up zero Customer balances by applying credit transactions to the invoice transactions through the Receive Payments window.
  • Move Customer Deposits out of a Liability Account by invoicing the Customer in full and adding a new line with a negative amount equal to the deposit.  This will reduce the amount of the deposit and invoice the Customer in full.
  • Clean up open Sales Orders by running Reports > Sales > Open Sales Orders by Customer (or Item).  If they will not be fulfilled, close them by double-clicking on the original transaction from the report and placing a check mark in the “clsd” column.
  • Remove any inactive Estimates that will never turn into an order.  Open the Customer Center, click on the Transactions tab, then click on Estimates.  Double-click on the Estimate then go to the Edit menu and click Delete Estimate.
  • Posted Wednesday, November 30, 2011 at 7:58 am CST in Accounting & Finance, Blog Posts, Business Best Practices, Featured, Operations |  Comment (RSS)
    Lillian Aaron

    Business Accounting Software, INC.: http://www.basi-usa.com/
    Contact Lillian Aaron

    Lillian Aaron is Founder and President of Business Accounting Software, Inc., a company that provides innovative, people-friendly business systems to help small and mid-sized organizations succeed and grow.

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