Accounts Receivables can be defined as the record of money owed to the businesses for goods or services, which is due on customers. We can use AR in short for accounts receivables. Notes and Collectibles are also the terms for Accounts receivable.
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What is QuickBooks Accounts Receivable Account?
QuickBooks Accounts Receivable account is an account which QuickBooks automatically adds to the chart of accounts when you create an invoice for the first time. This account is used for tracking of the funds which is due on your customers or clients. When you create an invoice or receive a payment from a customer or client, QuickBooks make the record of the transaction in the register for the Accounts Receivable account. Such sort of accounts are listed as “Accounts Receivable” right in the Chart of Accounts. If your business demands for more than one such type of accounts, you can do so.
Apparently,there is an option in QuickBooks that you can add more than one accounts receivable accounts to the chart. If you are required to use more than one accounts receivable account, QuickBooks allows to select the account you wish to use when you write an invoice or enter a customer payment.
Kindly ensure to record the accounts receivables transactions accurately to ignore wrong financial reports which can lead to incorrect tax payments and fines.
What are the Significant Benefits of Setting up QuickBooks Accounts Receivables?
The key benefits of Setting up QuickBooks Accounts Receivables are given below:
- It helps the user to have a record for the money payments from all debtors.
- It helps the user to send forms directly to debtors as a reminder about payments.
- It helps the user to send the email or call debtors for amount which is due.
- It helps the user to create a report to analyze patterns regarding Accounts Receivables.
How to Set up Accounts Receivables in QuickBooks: Process Explained
Here are a few steps given which helps the user to set up Accounts Receivables in QuickBooks:
A. Enable Estimate of the Total Value the Goods and Services will Cost.
- In the first step, navigate to the QuickBooks as an administrator.
- In the second step, you are required to move to the edit menu in QuickBooks accounting software and choose preferences.
- Now, you are required to select the jobs & Estimates & Company Preferences Tab.
- In this step, you must select the Yes option for the question “Do you need to create estimates”.
- And once all the steps are done hit the OK option.
B. Creation of the Estimate Value
- In the first step, navigate to the customers and click create Estimates options
- After that, add or choose a customer or customer job and fill the required information.
- Now, fill the information for the sale items or services and in the end click on save and close.
C. Creation of Sales Order
- In the first step, navigate to the preferences from Edit menu.
- After that make the selection for sales and customers and click on the company preferences.
- After that, enable sales order and click ok.
- Now, move back to customer and click on create Sales Order option and fill the required information and hit on save and close.
D. Creation of Invoice
- In the first step, navigate to the create menu and choose the invoices and click on new invoice.
- After that, click on create an invoice from Sales Order/ Estimate and choose on the basis of the document which was created in the previous steps and now click on save and close.
E. Tracking of Payment
- In the first step, from the home page you are required to click on Receive Payments.
- After that, choose the customer from whom the payment is received.
- Now, you are required to enter all the required information like amount, date etc.
- After that, you need to enter the check number if the payment has been made by a check this is required to have a record of the entry.
- In this step, choose the invoice that you wish to apply for this payment on.
- Once the above steps are done now enter the memo if required as the memo will make the entry more comprehensive.
- In the find step just hit the save and close option.
F. Creation of Deposit
- In the first step, navigate to the home screen and click on the banking option in the left navigation panel and click on record deposit/ make deposit.
- Choose the payments which are to be deposited and select the bank account which the deposit is to be made to.
- Now, you are required to fill all the required information and click on save and close.
You can generate the reports using the accounts receivable account post navigation to the chart of accounts. You can also select amount the creation of the sales order and an estimate. Users do not required to create both of these forms to create the accounts receivables.
Accounts receivables helps you to keep the record of the fund which customers or third parties owe to the business. Setting up the AR tracking is very easy and convenient in QuickBooks to maintain complete sales and customer reports by tracking the payments, adding finance charges for specific customers or applying reimbursements to sales for individual jobs. You are required to make an opening balance statement for every customer if performing only one job, as QuickBooks accounting software has the feature to input customer or client balance information to the Accounts Receivable account.
How to Add the Customer Information in QuickBooks Accounting Software?
- In the first step, you are required to launch the QuickBooks and hit on the Customer Center button.
- After that, from the top of the customer center menu choose New Customer & Job and select New Customer.
- Now in this step, in the customer name field you are required to enter the customer’s name.
- Post that, you need to enter the customer’s outstanding balance, if any, in the Opening Balance and As Of fields. If you are recording the multiple job for one customer or client so do not enter information into the Opening Balance field instead, just record a separate customer or client balance at the time of creation of the new QuickBooks Job entry.
You can also add any additional information if required including address, contact number and sales tax information, in the appropriate columns. Hit on the Next to save and enter more customer information, or hit OK to save and exit.
Adding an Accounts Receivable Account
- In the first step, you are required to launch QuickBooks and hit on the “Lists” menu option and choose the Chart of Accounts.
- After that, hit on Account at the bottom of the list and select New and choose the “Accounts Receivable” option and hit on Continue.
- Now, In the account name field you need to enter the name of the account and enter the account number, if available, in the Number field.
- You need to click on Next to save the account and create a new one, or hit OK to save and exit.
We have mention every small information on the subject which helps you to know the process in detail. However, if you still have any query related to this topic on how to set up add and enter Accounts Receivables in QuickBooks, do not hesitate to connect with our team of experts at our LIVE CHAT option and get immediate assistance from our expert support staff.
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