MYOB Training

When you start your own business, there are so many things to learn and a whole new way of doing things that you need to get used to. It can be both intimidating and overwhelming, and at times you can feel like you're being required to learn a whole new language. In a way, this is exactly what you need to do. The world of business is full of terms you won;t have come across before, or words that mean something different than what they do in day to day life. Nowhere is this more evident than in the world of accounting, which is why it can take some getting used to. If you're using accounting software there are usually some courses you can do, such as MYOB training , which will help you get used to accounting jargon and practices. In the meantime, this article provides some useful tips to understanding one of the first concepts in basic accounting: Accounts Receivable.

Basic Definition

Your accounts receivable are the amounts of money you are owed for goods or services you have provided. If your business provides a service or goods that aren't paid for in cash, you'll generally have a space of time between when you provide the goods or service and when you are paid for your efforts. Because of this, it is crucial to keep track of all the money you are owed, as well as an itemised description of who owes it and what it is you are owed for.

Keeping Track

Keeping track of your accounts receivable is not only important in terms of making sure you are paid on time; it is essential for establishing and maintaining a picture of how your business is situated. As you know, the success of a business at any time does not depend on how much cash it has in the company account, but rather the balance between what it owes and what it is owed. 

Organise

Organising your accounts receivable into categories is especially important if your business offers more than one product. It allows you to see at a glance where you're bringing in the most business, and lets you see which customers lag behind on payments and which are reliable. Gauging the professionalism of the people you do business with can be a very valuable learning curve, and can save you making mistakes or tying up finances with people who may cause damage to your finances or reputation. 

Keep a paper trail

As soon as a payment is received you need to make a note of it and amend the entry in the accounts receivable section of your accounting software. I'd recommend you learn MYOB  inside and out and become accustomed to entering receipt, cheque and transaction numbers for every payment. This way you have evidence of all professional transactions and can avoid confusion over accounts.