Account receivable template assist businesses in monitoring the company's account receivable and account payable, from which a suitable financial plan is developed. Therefore, let's explore and download the free table template together with Viindoo through the content of the following article.
1. What is Account receivable template?
Debt is the obligation of a business to pay for expenses related to employees, suppliers, and customers. Account receivable template is a document that reflects all transactions that occurred between the business and other parties during a certain period of time. The two most common types of liability statements are accounts payable and receivable.
The two most common types of liability statements are accounts payable and receivable.Business owners will use the debt statement to know the expenses which they will collect or pay to certain customers and suppliers. These debt tables are usually prepared by the accounting department at the end of the year as a basis for the company's business decisions in the following year.
Account receivable template plays a very important role in the future business activities of enterprises, including:
- The debt table serves as a summary of the products and services that have been invoiced for customers. The debt table also helps business owners confirm the payments that customers have made within a certain period, usually one month. This will help businesses understand clearly the revenue and expenses in the past year.
- Companies can also use debt tables as a basis for making decisions on payment of costs, discounts, and promotions for their customers.
2. What does the account receivable template include?
For the work summary, there will be two different categories of work payable and work receivable. Each table will have different content and will be calculated based on the number of times the business imports or exports goods.
For the payables table, the content will include:
- Material information that businesses import from suppliers, such as material name, material code, ...
- Product information invoiced to the customer, for example product name, product code, invoice date,...
- The data on the revenue and expenditure of the enterprise for the parties.
For the table of receivables, the content will include:
- Code: Customer's code, which can be obtained from the Debt Detail Book.
- Name of supplier: The name of the customer is clearly stated.
- Debit's opening balance: In the debt detail book, this data is drawn from the supplier's "Starting Debit Balance".
- Credit opening balance: In the debt detail book, this data is taken from the supplier's "Starting Credit Balance".
- Amount incurred during the period on the Debt side: In the debt detail book, this data is drawn from the section “Total incurred in the period”.
- Amount incurred in the period on the Credit side: From the debt detail book, this information is taken in "Total arising Credit in the period".
- Debit's ending balance: In the Debit Book, this data is taken from the supplier's "Ending Debt Balance".
- Credit balance at the end of the period: In the debt detail book, the data is drawn from the "ending credit balance" of the supplier.
- Sum of figures: Add up all opening balances, arising amounts, ending balances of both Debit and Credit sides of suppliers.
The two types of debt tables will have different content>>>> See More: What is an accounting voucher? When to use accounting vouchers? Download the common accounting voucher
3. How to Use Account Receivable Templates Effectively
Now that you've chosen the right account receivable template for your business, here are some tips to help you use it effectively:
- Keep It Up-to-Date
Make sure to update the template regularly to reflect any new payments received or outstanding balances.
- Set Reminders
Set up reminders for due dates to ensure that you never miss a payment.
- Analyze Data
Use the data from your template to identify trends and patterns in customer payments, which can help you make more informed decisions about credit policies.
- Follow Up with Customers
Send timely reminders to customers with overdue payments to improve cash flow and reduce bad debt.
How to Use Account Receivable Templates Effectively>>>> Learn About: 7 Ways capital management effective for business
4. Account receivable excel template
Here are some samples General account receivable template that businesses can use:
- Summary account payables
- Summary account receivables
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FAQs
Where is Account receivable on the balance sheet?
An account receivable is documented as a debit in the assets portion of a balance sheet. Typically categorized as a short-term asset, it signifies that it is expected to be realized within a year.
Can I customize an account receivable template to fit my business needs?
Yes, most account receivable templates are customizable, allowing you to add or remove fields, change the layout, or tailor it to your specific invoicing requirements.
Are account receivable templates compatible with accounting software?
Many account receivable templates are designed to work with popular accounting software programs. You can often import data from the template into your accounting software or export data from your software to the template.
This article's content has provided information and ways to create an Account receivable template. Viindoo hopes that businesses will achieve high efficiency in creating debt tables and based on that, make wise decisions for your future business operations.
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