The Accounts Receivable account captures all income generated by a business, but not yet received from its customers. It’s a Current Asset account, meaning that it captures income that has been earned and is owed to it within the coming year, and lives on the Balance Sheet. The income captured in the Accounts Receivable account is owed to the organization by its customers, on terms that have been pre-agreed and are stipulated in the Customer Invoice. When the Accounts Receivable account is correctly maintained the organization knows how much it is owed owe, and when it can expect to be paid, and can therefore best manage its cash flow. Accounts Receivable account transactions are double-sided transactions. In Accrual accounting, the income is booked to the related income/revenue account at the time the income is earned, often when the customer invoice is generated. Until the customer invoice is paid, it remains in the Accounts Receivable account. Managing Accounts Receivable is a critical function for any business, including following up on outstanding and overdue invoices, and having a collection process in place when needed. At the Profit Line in NYC, our job is to make sure our customers’ Accounts Receivable account is complete and accurate, so they know exactly how much they are owed and when they can expect to be paid. We generate regular, often weekly Accounts Receivable Aging reports so businesses can stay on top of this critical account. When needed we provide follow-up services, with reminders and collection notices for overdue customer invoices.