Accounts receivable is an important aspect of accounting that deals with the obligations that a customer has to pay money for the goods or services they rendered from a business, but still, the payment for these goods and services is pending and is not received by the business. Manuals as receivable control procedures homework answers can be of real help in this regard.
In Accounts receivable ledger all the payments due from the customer’s end is recorded for the goods and services they ordered for, but business didn’t receive payment yet for the same.Hence, in balance sheet, these accounts receivable are indicated on the assets side.
Business entities generally use the methods of raising an invoice or else by sending information via mail to the customers, also providing details about the payment terms and conditions.
Since accounts receivable shows all the dues and unpaid amount from the customer’s end that is why quite significantly important when you see from business point of view. Accounts receivable are considered as an asset for the business because the business owes the amount from customers for the goods and services they already delivered.
Why receivable control procedures are needed by businesses?
As now you are aware of the basic facts about accounts receivable and what is the importance of accounts receivable for any business? Now I am going to tell you that, what is the need of a proper procedure to control these account receivables?
In accounting or bookkeeping, maintaining a proper record of accounts receivable is of paramount importance and should be done in a formularized manner in order to prevent the risks related to frauds, hoax or loss. With manuals as receivable control procedures homework answers,you can get an ideal way to understand basic concepts of this subject.
A well strategized receivable control procedure can help businesses reducing the chances of damages and scams, ultimately helping businesses to grow. The main objective of receivable control procedure is to make sure that all the invoice generated are precisely recorded and customers in response to this invoice are making payments timely.
Needless to say here that in preparing accounting statement, accounts receivable is foremost important aspect and keeping a check on this account receivable by businesses is required. That is why businesses adopt receivable control procedures hold back the possibility of errors and fraud later on.
Points of interest in receiving control procedures
Here are listed some key points to remember about receivable control procedure, have a look.
- Receivable amounts are in consideration only
Accounts receivable only deals with the amount has to be yet received from customers side for the goods and services and strictly saying no other dues pending.
- Customer invoice preparation
Invoice prepared for the customer needs to be free from errors and mistakes.Invoice should be made in accordance with the dues left and then generated, mentioning the payment conditions too.
- Proper arrangement for customers
There must be some arrangements for customers to question or inquire anything after invoice generation to maintain a fair structure.
- Seizing of these accounts after payment
Once the payment has been made by the customers, properly making a statement about seizing of these accounts to avoid confusion in future is important.
- Credit memos preparation
The last point includes finally creating a credit note that payment has been finally received from customers and now no dues are left so far.
Receivable control procedures are very crucial for organizations and are adapted by almost every organization these days to keep a record of their accounts receivable, hence organizations need a suitable workforce to manage their receivable control procedure.
Receivable control procedure is a vast field and organizations need multiple people to perform the various functions of receivable control from generating invoices to collecting payment and then reconciliation. Because of this reason students can find a diverse scope in this field and can choose receivable control procedures as their subject.
Difficulties in receivable control procedures homework answers
As mentioned this subject has a lot of aspects to understand and sometime students can find it a little troublesome to grasp theses minute things while completing receivable control procedures homework answers by own.
As it is quoted that receivable control procedure involves a step by step method which starts from preparing an invoice for customers on the basis of information of dues to generating these invoice to customers, receiving payments and then reconciliation of accounting statements.
Students can face issues while analyzing the invoices made, checking the terms of contract and also in the credit methodologies and sometimes it is not feasible for students to complete their receivable control procedures homework answers by own.
No to worry at all,because, with the advancement of technology, it is now easy to opt for help online just a click away. So if you want a friend cum tutor to assist you in your receivable control procedures homework answers, then don’t hesitate to ask for help online.
Learn the minute concepts via online homework help
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