Accounts Receivables & Payables
Accounts Receivables is great - it is the money going into your business
The company has a right to receive this money because you have provided customers with goods and/or services on credit. An invoice is raised at the time the goods and/or services were supplied. The invoice describes the goods and/or services, the amount and when it is due for payment. Accounts receivables is also known as ‘trade debtors’. Accounts Receivables is listed as a Current Asset on the Balance Sheet.
Accounts Payables - stay on task with what money you owe
The company has an obligation to pay a short term debt by an agreed date as per invoice to its creditors or suppliers. This could be in the form of inventory, stationery, utility bills etc. Accounts receivables is also known as ‘trade creditors’. Accounts Payables is listed as a Current Liability on the Balance Sheet.