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How to Setup Accounts Receivable in QuickBooks

    Accounts Receivable QuickBooks

    The Accounts Receivable register in QuickBooks is the place that you enter customer payments. Once a payment has been recorded in this register, you can quickly see payment trends and how your business is faring over time by viewing graphs and reports that indicate which customers have been prompt with their payments.

    What do you mean by Accounts Receivable?

    The money your customers owed to you for the goods and services that are delivered and used by them. But the money is still not received by you for the goods and services you delivered to them. The Accounts receivable is also named as the A/R. It tracks all the outstanding bills that you have.

    The Accounts Receivable adds automatically to the Chart of Accounts when you have your first invoice in it. You can track your money using this account. If in case, you need to add the additional or separate account in your company then you can create one easily in the chart of accounts. After having more than 1 account, you have the option of choosing one account to complete your action when it is related to the accounts receivable.

    Steps for Setup Accounts Receivable in QuickBooks

    Here are the various workflows that are used according to the different scenarios that are explained in the workflows themselves. The workflows are of 5 types so, before making a transaction in accounts receivable you have to see which workflow can be done and then follow the process accordingly. The processes of A/R workflows are as follows:-

    Total Time: 30 minutes

    Estimate – Invoice – Payment – Deposit

    This workflow is used to only send the proposals to the customers but does not have to convert them into a sales order. The process is mentioned below:-
    1.     Estimate is created
    2.     Then make a new invoice
    3.     Now record the payment for it
    4.     In the end, deposit the customer’s payment after receiving it.

    Estimate – Sales Order – Invoice – Payment – Deposit

    In this workflow, the quotation is sent to the client that is changed into your sales order. It is done before creating an invoice and receiving the payments. The steps of implementing it are:-
    1.     Firstly create the estimate
    2.     Then create a new sales order
    3.     After that, you have to create the invoice
    4.     Now the payment is recorded
    5.     In the end, receive and deposit the customer’s payment.

    Statement Charges – Finance Charges – Statement – Payment – Deposit

    This workflow is for those who bill their clients every monthly basis. The charges can also be directly entered in the register of the customer instead or adding new invoices to the account. The steps for this process are as follows:-
    1.     Create a new statement charges
    2.     Then do access the charges of finance
    3.     The billing statement is created newly
    4.     Now record the payment also
    5.     Do deposit the payment of the client.

    Sales Order – Invoice – Payment Deposit

    When you won’t send the proposals to the clients but you have to use the sales order and manage the product’s sale. The steps of this workflow are as follows:-
    1.     In the beginning, in your QuickBooks account
    2.     Firstly, create an order of sales
    3.     Then create the invoice of it
    4.     Now payments have to be recorded
    5. Then deposit the customer payments.

    Invoice – Payment – Deposit

    This type of workflow is used only for recording the payment of the customer. It neither sends the proposals nor changes it into the sales order. The steps for this are mentioned below:-
    1.     First of all, create an invoice
    2.     Then record the payment in it
    3.     After that, deposit the payment of the client
    4.     Now it’s done.

    How to get in touch with

    Above, you get all the workflows that can be done in the accounts receivable. If any workflow takes place then the account receivable is created in chart of accountants in the QuickBooks If you face any issue or have any other query then dial the QuickBooks technical support number send the email at [email protected] or do a QuickBooks live chat with QuickBooks experts.


    What is Accounts Receivable

    AR is a term that describes the balance of money due to a business for goods or services delivered or used but not yet paid for by customers. This balance is often broken down into two categories: AR accounts receivable and AR notes payable. AR accounts receivable is listed on the balance sheet as a current asset because it represents money owed to the company by its customers.

    How to Calculate Accounts Receivable Turnover

    Account receivables refer to the money that a company pays for its products and services. An accounts receivable turnover is calculated by adding the beginning and ending accounts receivable, dividing it by 2, and then taking the average.

    What Type of Account is Accounts Receivable

    Accounts receivable, also referred to as A/R, is an asset account on the balance sheet that represents money due to a company in the short term. Accounts receivable are created when a company lets a buyer purchase their goods by selling them at a discount. Once they sell their product to the buyer, they will take on all of the payment (which is known as credit) upfront and then wait for what’s known as the cash-flow of that sale before they can be paid.