OneBusiness Accounts Payable and Accounts Receivable (AR) are two important processes for any business. The payment which the company will receive for the goods supplied or services rendered to its customers. The accounts receivable or bills receivable will follow an Accounts receivable the heart of any business. Having an established process around AR is essential for success.
There is a direct link from Sales and billing to your accounts receivable process. OneBusiness is one of the best ERP software in India and has seamless integration between Sales and billing with financial accounting. The profitability is directly proportional to your focus on accounts receivable. AR is an asset, as it is related to the company’s revenue.
It is the money-generated by the sale of goods or services customers owe you. Once you send an invoice, it becomes part of your accounts receivable – until you receive money from your customer. Tracking of these line items is utmost important for any business.
The process starts with billing and ends at receiving the cash. It will also include payment process, tracking, and debt creation
Please check OneBusiness Debt Management to know more about how to handle debts. When the customer doesn’t pay your invoices, you would write them off as a bad debt or engage a third-party collection agent.
It’s a loss to your organization, and it’s essential to record that in your books. You need to initiate the process to claim the GST you had paid for that amount. We should allow sufficient time to write of a debt. The OneBusiness ERP and finance solutions will enable you to transfer the amount to a separate G/L account during this process.
We recommend having a well-defined business process to write off the debt. Companies will have a management working committees to decide on the action in such cases.