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Chapter 12. Invoicing, Monthly Statement... > Tracking Accounts Receivable

Tracking Accounts Receivable

The balance in the accounts receivable account is the total of all amounts due to your company. Every time you record an invoice or a finance charge, this balance increases. Each time you record a payment against an invoice, the balance in accounts receivable is reduced.

Tip from

From time to time you need to monitor the level at which your accounts receivables increase or decrease. Unless you have made a change to your company’s credit policy, receivables need to increase or decrease at a rate comparable to your level of income. If your income increased 15 percent this year over last year, expect an increase in your receivables of roughly 15 percent as well.



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