Your Accounts Receivable is the money owed to your business, typically from invoices you have sent to customers or clients. The Accounts Receivable is important to monitor to assure invoices are going out and getting paid in a timely fashion. Your Accounts Receivable Aging is a report that categorizes the length of time invoices have been outstanding into periods to help monitor potential cash flows.
Best Practice Suggestion: |
Your business health thrives on cash flow. Keeping a healthy Accounts Receivable balance is critical to maintaining a positive cash flow. A healthy Accounts Receivable shows a decreasing proportion of due invoices in each aging category. You’re best able to maintain this condition by regularly sending invoices and following up on outstanding invoices to minimize aging balances. |
In your Accounts Receivable, you are able to manage the status of each finalized invoice. You are also able to monitor aging and the breakdown of income for labor-related efforts and income related to pass-through expenses like sub-consultants and direct/reimbursable project expenses.
This Article outlines the features and use of the Accounts Receivable page.
Quick Summary:
- Access your Accounts Receivable
- Accounts Receivable Interface
- Access Invoice Related Information
- Access Project Budget and Management Views
- Change Invoice Status
- Apply an Invoice Payment
Step-by-Step Guide:
- To access/review your Accounts Receivable - Click on the 'Financial' tab→ 'Accounts Receivable sub-tab.
- Accounts Receivable Interface
The 'Outstanding' button at the top of the page will show invoices that are unpaid and aging, and the ‘Paid’ button will show you invoices that have been… well… paid. :)
The Aging table breaks out company labor efforts from direct expenses or sub-consultant efforts to provide an additional layer of perspective with regard to company cash flow.
The Aging table at the top breaks out company labor efforts from direct expenses or sub-consultant efforts to provide an additional layer of perspective with regard to company cash flow.
In the tables below, invoices are grouped into their aging categories. For each invoice, you are able to access the Project Management view for each project, view the invoice, change the status (not sent, sent, paid), and apply payments to invoices.
- Accessing Invoice Related Information
For easy reference, invoice-related information can be accessed from the Accounts Receivable page. By default, you will see a list of your outstanding invoices. Paid invoices are easily viewed by selecting Paid in the top toggle button as instructed above. To view the invoice, simply click on the invoice number (#) and it will be loaded as a PDF in a new browser window.Note: If you want to make a change to this invoice, follow the project link to access the project invoices where the invoice can be rescinded to allow changes.
- Access Project Budget and Management Views
Clicking on the Project Name will take you to the project, where you can manage the budget, progress, schedule, and billings of the project. - Change Invoice Status
Invoice statuses include: Not Sent, Sent, and Paid. The statuses of Not Sent and Sent are toggled by clicking on the colored label. The Paid status is automatically updated once full payment for the invoice has been received. - Apply an Invoice Payment
You can apply the payment to an invoice from the Accounts Receivable page. To do so, click the payments link to the far right of the table.
This will open a window where you will enter payment details. Enter a payment date, a payment amount, and select a bank account (to which the deposit will be made). You can apply partial payments to an invoice if necessary and add additional payments at a later date.
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You have successfully learned how to manage your Accounts Receivable! If you have other questions related to your Accounts Receivable, see the other articles in our Accounting 101 section. Can't find what you're looking for? Try the main knowledge base search at https://support.squava.com. If you’re still unable to find what you're looking for, give us a call, submit a request ticket, or send us a chat message.
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