Ask for Accounting News How to adjust accounts receivables in QuickBooks? Follow these steps.

How to adjust accounts receivables in QuickBooks? Follow these steps.

Submit Your Query & we'll revert you back:

Ask for Accounting News How to adjust accounts receivables in QuickBooks? Follow these steps.

How to adjust accounts receivables in QuickBooks? Follow these steps.

Submit Your Query & we'll revert you back:
by qbproca

Accounts Receivable is a form stating the amount that an organization is entitled to, from a client or customer. They are created for keeping track of due payments. Accounts receivables are usually created for a short period of time. You can easily manage AR in QB, but for that you should know how to adjust accounts receivables in QuickBooks. If you don’t then no worries, here we will discuss the step by step process on how you can exactly do so all with ease.

How to track Accounts Receivables?

For keeping track of A/R, you would need to uses the chart of accounts. All accounts receivables can be tracked through the accounts receivables account present under chart of accounts. In fact, chart of accounts can link you to all the accounts present for a particular company file. Accounts Receivable accounts are created automatically by QuickBooks for all company files. It is recommended that you don’t create multiple account receivable accounts as this may hamper the reporting feature present in QB.

Caution:

For creating accurate reports, record these forms with clinical precision. Also, ascertain the accounting basis that is used by your organization. In cash basis, transactions aren’t recorded until amount against them is received. On the other hand, in accrual basis, transactions are recorded despite the status of payment.

Steps on how to adjust accounts receivables in QuickBooks?

For adjusting accounts receivable in QuickBooks, follow the steps given below:

  1. Create your accounts receivable
    • Create an invoice by going to the Create option
    • Enter all the necessary information such as customer name, product/ service name, description, transaction amount and so on.
    • Do not apply for any payment on the invoice. Click on Save.

Once you create an invoice, without applying any payment to it, QB will start recognizing it as an A/R. Once you receive the payment against this invoice, you can easily apply it. You can create a report for searching through invoice. By creating a report and applying filters, you can substantially narrow down your search.

  1. Record a payment against the invoice
    • Record the payment. The payment will be transferred to Undeposited Funds.
    • Go to the invoice and click on apply for payment.
    • From the drop down list, select the payment that you want to apply to that particular invoice.
    • Click on save and close.

By following the aforementioned steps, you will be able to adjust accounts receivables easily in QB. Also, make sure to reconcile the transactions before applying payments to the invoice. This will help in maintaining accuracy.

Reconciliation statements are created after tallying transactions from a particular account with the transactions mentioned on the bank statement. Through reconciliation statement, you can even identify fraudulent cases such as that of money laundering. It delineates a clear picture of the flow of money and helps organizations in their journey towards success.

In any case, if you encounter a problem while adjusting account receivables in Quickbooks then feel free to contact us.

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