When customers do not pay invoices on time, your business can show strong sales and still struggle to pay its own bills. The solution is not simply to “chase customers…

The three accounting issues traditionally associated with accounts receivable are recognizing, valuing, and disposing of receivables. In day-to-day business accounting, these issues appear as three practical problems: incorrect revenue recognition,…

Many business owners confuse accounts receivable (AR) and accounts payable (AP) because both involve money that has not been paid yet.  The difference is simple:  Accounts receivable is money customers…

Outstanding accounts receivable can devastate a small business, even when the company’s sales are otherwise healthy. After all, the cash hasn’t actually been received and is still owed by your…

Keeping cash moving through your business is just as important as making sales. When you sell something on credit, though, the money does not always come right away. Until your…

For a small business, making a sale is only half the job. You also need to make sure the customer actually pays. One or two late payments might not cause…