Elements Of The Accounting System: Accounts Receivable Who owes you? Keep track with an accounts receivable ledger.
If you plan to sell goods or services on account in yourbusiness, you will need a method of tracking who owes you how muchand when it is due. This is where the accounts receivable subledgercomes in. If you will be selling to a number of differentcustomers, then an automated system is a must.
A good bookkeeping software system will allow you to set upsubledgers for each customer. So when a sale is made on account,you can track it specifically to the customer. This is essential toensure that billing and collection are done in a timely manner.
Excerpted from Start Your Own Business: The Only Start-UpBook You'll Ever Need, by Rieva Lesonsky and the Staff ofEntrepreneur Magazine, © 1998 Entrepreneur Press
