What is accounts receivable?

Invoices sent to clients for work done are considered accounts receivable (AR or A/R) as it represents the money you are to receive. Time entries, expenses and vendor bills contribute toward the invoices sent. You can deposit payments in the relevant accounts after receiving them using the Deposits screen. CORE also enables you to transfer funds between accounts. You can view all accounts receivable transactions and their details in the A/R account registers.

Client investment is a good indicator of your accounts receivable. When the client investment is too high, you need to remind the client for payments.

When you create invoices, CORE debits the A/R account and credits the income or sales tax account. When you record payments, CORE debits the Undeposited Funds or bank account and credits the A/R account. Check CORE Help Center for details.

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