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Part-time Cfo Services | How To Fix Errors On Accounts Receivable Summaries

An extremely important tool that business owners depend on in order to help them ensure that they remain cash flow positive in their business, is the Accounts Receivable aging summary says part-time CFO services. This is the reports that is going to help business owners collect money from their clients on a regular basis to ensure that they have a positive cash flow in their business at all times. If there able to fix errors through a variety of ways on this report, they can ensure that they are being proactive, and keeping the reports as accurate as possible, which will give them the best information to collect with.

When extremely easy thing to spot on and Accounts Receivable summary is an negative number. The reason why it is easy to spot, is because it is unusual to see. Part-time CFO services says that this does not necessarily indicate an error, but it should because an entrepreneur to look into the reason why this number might be negative on their summary. When a business owner invoices a client, that invoice is indicated on the Accounts Receivable summary as a positive number. Therefore, a negative number means that a client is either prepaid, or overpaid. While it is possible for business owners to receive a deposit before doing work, or receiving a check for too much money, this is not the typical way, therefore business owners should ensure that they are verifying it is accurate. If they can easily find out if they got a deposit or received an overpayment, then that is an easy way to verify the accuracy of the number.

Other things for entrepreneurs to review, would be if they see a whole or around number in the summary. Again, part-time CFO services says that this is not necessarily an error, but can mean that and entrepreneur accidentally invoiced an estimate instead of the actual invoice. Most invoices are usually an audit number with some cents. If a business owner sees around number, they should look for an error to ensure its accuracy.

Another way for an entrepreneur to review their Accounts Receivable summary, is by verifying that all of the totals on the summary relate to actual invoices they expect to receive payment on. This means that they should not the shareholder amounts, related party amounts, payroll or CRA amounts listed in the Accounts Receivable summary. All of those things have their own spot in the balance sheets elsewhere, and should not clutter up the Accounts Receivable summary, making it harder to read. By seeing those things and fixing them, business owners can ensure that they are keeping their accounts receivable summary accurate.

By keeping their summary accurate, part-time CFO services says that it makes it easy for a business owner to use that report to collect outstanding amounts from their clients efficiently, so that they can stay cash flow positive in their business and avoid running out of money.

Part-time Cfo Services | How To Fix Errors On Accounts Receivable Summaries

Accounts Receivable summary may be overwhelming for some entrepreneurs to be able to read, and part-time CFO services says that when business owners are overwhelmed, they are not going to be able to use the reports efficiently to collect outstanding invoices from clients. In order to help entrepreneurs use the summary effectively, they should learn how to read it is, identify anomalies and verify the accuracy of the information, so that they can confidently contact clients that all the money.

First thing that business owners should understand, that an Accounts Receivable summary is a list of all of customers who owe them money. They are going to have six columns that show the customer, the amount of money that the customer owes, and they will be organized by the date that they started owing that amount to the business owner. And then, they will have a grand total of all of the amount that the business owner is owed by all clients. Part-time CFO services says that by looking at this list, they should be looking most at the ninety days plus column to ensure that all of those clients have definitely not paid. By doing a cursory glance, and verifying that they have not missed putting in a payment from those clients, they should start their collection calls with the clients that all the money the longest.

A business owner should also know what it means when they see both the positive and negative number for a single customer. Part-time CFO services says that this is typically visible when it is the same customer, in different periods of time, such as the invoices that are not past-due yet column and the one to thirty days past due column. It will typically show up as a positive number later, and then the negative number earlier. All this means, is that while a business owner has entered the amount that the customer has paid into their accounting software, they have not actually applied that payment to the specific invoice. When a business owner sees this, they can fix the mistake and ensure the accuracy of the statement.

In order to help ensure the most up-to-date Accounts Receivable summary, business owners can learn how to enter invoices and payments directly into their account software. While business owner should not endeavour to do all of their financial transactions in their software, by entering in every invoice that they generate, and every payment they receive, can help an entrepreneur he confident that every Accounts Receivable summary they can pull, will contain the most up-to-date information.

When business owners are able to ensure the accuracy of their Accounts Receivable aging summary, as well as ensure they information is as up-to-date as possible, they will be able to confidently use that information to contact their clients to facilitate the collection of the money that they are owed. By doing this, business owners can ensure that they are staying as cash flow positive in their business as possible.