Tracking Accounts Receivable in QuickBooks

Tracking accounts receivable in QuickBooks is essential for managing your business’s cash flow and ensuring that you receive payments from customers promptly. Accounts receivable represents the money your customers owe you for products or services you’ve provided. Here’s how to track accounts receivable in QuickBooks, whether you’re using QuickBooks Online or QuickBooks Desktop:

Tracking Accounts Receivable in QuickBooks Online:

1. Log In to QuickBooks Online:
   • Open your web browser and log in to your QuickBooks Online account.
2. Create Invoices:
   • When you provide products or services to customers, create invoices in QuickBooks Online to record the sales and the amount owed by each customer.
   • To create an invoice, go to the “Sales” menu and select “Invoices.” Then, click the “+ New Invoice” button and fill out the invoice details, including the customer’s name, products/services provided, and amounts.
3. Receive Payments:
   • When customers make payments, record those payments in QuickBooks Online. You can do this by going to the “Sales” menu and selecting “Receive Payment.”
   • Select the customer who made the payment, enter the payment amount, and specify the payment method (e.g., cash, check, credit card).
   • QuickBooks Online will automatically update the accounts receivable balance for that customer.
4. Run Accounts Receivable Reports:
   • To view accounts receivable balances and aging reports, navigate to the “Reports” menu and select “Customers & Receivables” reports.
   • The “A/R Aging Summary” and “A/R Aging Detail” reports provide insights into outstanding balances by customer and the aging of those balances.
5. Review and Follow Up:
   • Regularly review your accounts receivable reports to track outstanding payments.
   • If customers have overdue invoices, you can use QuickBooks Online to send reminders or statements to encourage prompt payment.

Tracking Accounts Receivable in QuickBooks Desktop:

1. Launch QuickBooks Desktop:
   • Open QuickBooks Desktop on your computer.
2. Create Invoices:
   • When you provide products or services to customers, create invoices in QuickBooks Desktop to record the sales and the amount owed by each customer.
   • To create an invoice, go to the “Customers” menu and select “Create Invoices.” Fill out the invoice details, including the customer’s name, products/services provided, and amounts.
3. Receive Payments:
   • Record customer payments in QuickBooks Desktop by going to the “Customers” menu and selecting “Receive Payments.”
   • Choose the customer who made the payment, enter the payment amount, and specify the payment method.
   • QuickBooks Desktop will automatically update the accounts receivable balance for that customer.
4. Run Accounts Receivable Reports:
   • To view accounts receivable balances and aging reports, go to the “Reports” menu, then “Customers & Receivables.”
   • The “A/R Aging Summary” and “A/R Aging Detail” reports provide insights into outstanding balances by customer and the aging of those balances.
5. Review and Follow Up:
   • Regularly review your accounts receivable reports to track outstanding payments.
   • If customers have overdue invoices, you can use QuickBooks Desktop to send reminders or statements to encourage prompt payment.

QuickBooks is a versatile accounting software that simplifies financial management for small businesses, often in collaboration with a dedicated bookkeeper for small business owners.

By diligently tracking accounts receivable in QuickBooks, you can better manage your cash flow, reduce the risk of late or unpaid invoices, and maintain healthy customer relationships. It’s a crucial aspect of effective financial management for businesses.