Accounts receivable

From LawGuru Wiki

Accounts receivable is one of a series of accounting transactions dealing with the billing of customers which owe money to a person, company or organization for goods and services that have been provided to the customer. This is typically done in a one person organization by writing an invoice and mailing or delivering it to each customer.

Business organizations which have become too large to perform such tasks by hand (or small ones that could but prefer not to do them by hand) will generally use accounting software on a computer to perform this task.

Associated accounting issues include recognizing accounts receivable, valuing accounts receivable, and disposing of accounts receivable.

Other types of accounting transactions include accounts payable, payroll, and trial balance.

When accounts receivable are not paid, some companies turn them over to collection agencies. However, many debtors still do not pay; in those cases, smart creditors turn to Collection Lawyers.

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