When receivables are part of the business, they become a critical part of the revenue cycle, as you’ve no doubt seen in that lesson. Managing accounts receivable in QuickBooks Online is something you’re going to want to know how to do from every possible angle.
When you understand how accounts receivable works in terms of the debits and credits, and how that translates into the forms in QuickBooks Online, then you become a power user of QuickBooks Online. You’ll see in the video how posting a journal entry, lets you use your actual knowledge of Debits and Credits to handle a situation that comes up quite a bit in small business accounting.
It’s important to understand how to clean up problems with accounts receivable. Almost every new account I take on has issues with their accounts receivable. The most common thing I see are negative amounts in the accounts receivable aging summary report. This means one of two things. We were paid a deposit by a customer, and we haven’t invoiced it yet. We’re going to learn how to deal with customer deposits in two lessons from now. Or we’re simply missing an invoice to go with the payment. The question is, how would you clean it up? I have also seen many cases, where the negative amount in accounts receivable is because the payment received was actually more than the invoice amount.
After you review this lesson you should have a very thorough knowledge of how to manage accounts receivable in QuickBooks Online from every angle.
Don’t forget to use the form on your right to ask questions.