 0. Accounting Software. Accounts Receivable Agent Report. Get ready to be an Office Hero with 0. Support Accounting Instruction by clicking the link below, giving you a free month membership to all of the content on our website, broken out by category, further broken out by course. Each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files, and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. Here we are in our Custom Zero homepage. We set up in a prior presentation, scrolling in a bit, holding down control up on the scroll wheel currently at 1.75% zoom in, opening the demo company, doing so with the reset button, resetting the data, and opening the demo at the same time. We're then going to duplicate some tabs up top to put some reports in, right-clicking on the tab up top to do so. This is what we've been doing every time, right-clicking on the duplicated tab, duplicating it again. Back to the middle tab, we're going to go to the Accounting drop-down, open up the major financial statement, the balance sheet report tab to the right. Accounting drop-down, opening up the income statement, profit and loss report. Back to the tab to the left, we're going to change the dates up top, customizing them, bringing it up to 2022. And then I'll update that report, scrolling in a bit back to 1.75% tab to the right. That's what we've been doing every time. These are the major two financial statement reports. Now we're taking a look at some of the subsidiary reports as we do so. Don't get overwhelmed because you can think of these other reports as basically giving you more information as on one or multiple line items of these major financial statement reports. So I'm going to right-click and duplicate the tab again and open up another report. Accounting drop-down reports. This time we want to have the AR accounts receivable aging report. So I'm going to scroll on down to where it says payables and receivables. We've got two receivable agents. We've got the receivable aging detail and the summary report. Let's open up the summary report first and check that out. And so this one, as it would indicate, I'm going to hit the drop-down, customize the date and say that we want to go to 31st, update it. So there we have it. So as would be indicated by the accounts receivable in the name, this is giving more information on the balance sheet account of accounts receivable. So if I go back to the balance sheet and we scroll down to the accounts receivable, this account is one representing the fact that customers owe us money. It goes up with invoices. It goes down when the invoices are paid, when we receive money from the invoices. If we look at our chart of accounts here, I'm sorry, our flu chart, on the sales cycle, the accounts receivable is part of the sales revenue or accounts receivable cycle. Which at the end of the day, we expect money to be increasing our check-in account typically. If we have a very simplified business, we might just have gig work, we wait till like YouTube pays us or something, and then we just increase it with the bank feed and basically a deposit form at that time. But we might have a cash register situation, in which case we can't really wait till something clears the bank before reporting it, but rather report it at the point of sale, although still a cash-based system. And or we have an accrual system, one in which, and this will be driven by industry typically, we have to do the work first, like a bookkeeper, like a law firm, like a landscaping company. And this then increases the accounts receivable and records sales at this point in time, then we're of course looking to collect on the accounts receivable so that we can actually get the cash. So you would only have accounts receivable if you had an accrual accounting system for the revenue cycle, which you would only have if you're in an industry where you typically do the work first and then bill the customer. And that kind of system, then for small companies, of course, you're going to track your own businesses and the bookkeepers might, you know, of course, be involved in that process. The larger the company gets, you can have whole departments that are in their service of basically managing the accounts receivable, trying to collect on the accounts receivable and so on. So if you have this number and I drill down on the accounts receivable, going into basically the general ledger, the transaction detail report, it gives me more information, but it gives it to me by date. That's not as useful for most of our practical purposes, because what we want to know is this information not by date of transactions, but by who's owes us the money. So if I go back then, oftentimes we go to the first tab and we in practice when we're managing our accounts, we're going to go into say the business drop down into the invoices here and we can manage the invoices that are awaiting payment, for example. And this is this is basically if they're invoices awaiting payment, these are, you would expect the sum of these outstanding invoices to add up to the accounts receivable on the balance sheet, although we don't get a total in this format. This is the way that we can practically sort our data when we're trying to get collections on it or send out statements related to it. Or we can go to the contact drop down and we can go to the customers, so we're in the customers in the contact drop down. And so now we can see the people that owe us money basically in this format as well and go into an individual individual customer that owes us money and get more detail there. Then from a reporting standpoint, it's useful to see that information who owes us the money, which is basically the total here in our aged receivable, which ties out to the total that's on the balance sheet. That's nice, because now we can really see how these things are linked together that 9,172.63 ties out to what's on the balance sheet here as of the same date back to the aged receivable. But if I was talking to a customer, I might go into the customer themselves or the open invoices. Why I might use this report in practice would be that it gives you this nice breakout between how old something is. So one to 30 days, 31 to 60 days and 61 to 90 days or older than that could help us with multiple things. One, it helps us to kind of crack down on some of these customers to try to collect what is outstanding. If we have a customer that has some stuff that's quite old and to determine whether or not we're going to do business with them in the future if they haven't paid us for the business that we have done in the past. It also could help us to calculate our allowance accounts if we're using kind of an allowance method for writing off bad debts. Because as these debts get older, we would assume we're less and less likely to get paid on them. And from an accrual standpoint, if you look at your balance sheet here, this asset account, this is an asset account accounts receivable. And if you have a lot of stuff in there that you don't think you're actually going to get paid from because it's old, we really should for fair reporting. Write it down with an allowance account to show the fact that yeah, that my accounts receivable is that, but I expect that there's going to be less than that that we're going to receive due to the fact that some of them are old. And so that's just the way business goes. Sometimes we're not going to get paid on all of it, most likely. And so we won't get into the allowance method right now. We have whole courses on that. If that's something you want to look at, but you've got the direct write off method and the allowance method. And this, and then you can calculate the allowance account multiple times with sales or the accounts receivable aging. But this is one form you could use in that as well. Now, this is the standard layout of it. If I go up top, we've got the date, of course, of the report. Now, this is reporting as of a point in time account, like a balance sheet account as opposed to a performance account. But it does have a timing nature to it like an income statement account, which is a timing account because it's showing when the activity basically happened. And then you've got the date drop down. So you've got these sorting by usually you sort by the due date, but you could sort by the invoice date. So when you enter the invoice into the system, that's the invoice date. Usually you're going to expect to get paid sometime within like the next 30 days. So you'd set the due date. So usually you're aging down here is going to be based on the due date. Now, these are the default settings, which are quite common, but you could change them. You could say, maybe I don't want three periods. Maybe I want four periods that are 30 days apart. So we're going to say apply and update. So now we've adjusted the periods. We could, you know, say that we want to say instead of 30 days, make something other than 30 days, weeks, months, and so on and so forth. But that's the standard format. So we'll keep it there. Three columns selected. So with the columns, you could add more information here. So available credit contact, account number, contact group, credit limit, email, mobile phone, outstanding tax, tax phone, primary reason. So for example, if you wanted to use this report to kind of contact people and you're going to print it out or something and have someone call them or something like that, you can add the email or send an email out. We can add the email. And so now you've got kind of like a contact list that's tied into your report as well. So you've got some customization options. So you've got your grouping. So, so you've got the items down here available credit contact group and so on. And then you've got your filtering options by region. If you've got your regions, you know, set up, which is kind of a specialty kind of area, setting up your information and sorting your information by region as we talked about and saw when we looked at the balance sheet and the general kind of formatting tools that might be available to you with many different reports. So that's the overall report for the aging here. Then I'm going to duplicate it and let's just take a look at the detailed aging accounting drop down reports and let's scroll on down to the aging detail account going into that one. Pour five or drop down. Let's bring it on up to to the end of the 31st. Okay. So you've got a similar type of report, but now it's going to give you some of the activity, which is going to be the outstanding invoices. So now it's giving you then the name of the customer. But instead of just giving the totals, then broken out by how old something is, it's giving you the activity. The invoices that are outstanding constructing them. So this one, this one has multiple invoices outstanding, breaking them out by how old they are here. So just a little bit more detail, similar kind of report. So the basic idea you want to think about with the receivable account is that you've got the balance sheet receivable represents people owing us money. It's only going to be there if we have an accrual method, meaning we use invoices because we do the work first, generally collect on it later. So we have to worry about collecting the data and then we'll manage the collection of the data with, of course, our tools over here, our invoices sorting our invoices and our contact, our customer contacts over here. But we can also think about who owes us the money is the basic idea of that, which we can see more formally in a report breaking out the customers that owe us that money so that we can actually contact them and try to collect on it as well as the aging, which gives us another factor in a report format that's easier to see than oftentimes in non report format. That tells us how old stuff are that we can use for multiple reasons to determine how we can collect from those individuals, whether we want to do business with certain individuals. And if we're trying to calculate what the actual value of our accounts receivable is based on how likely we're going to collect on it using kind of an allowance method, we've got the receivable agent reports.