This is the third of the posts in preparation of the end of the financial year on 31 March (4 days to go) ..

Accounts Receivable (Debtors)
These are customers that owe you money.
If you don’t use a computerised Accounts Receivable system, then you will need to make a list of those customers that you have invoiced but they haven’t paid you as at 31 March (ie owe you money). The amount is the total they owe you for all invoices and not just the March ones.
If you use a computerised system, then you need to review the Accounts Receivable report to ensure that all those listed do in fact owe you the amount as shown .. then follow up all of those that are overdue! You would be surprised the number of clients that don’t do this!

Bad Debts
When reviewing your list, you need to write off any bad debts before 31 March .. in order to be considered bad you must have given up collecting it and not be still pursuing.

Deposits for Work not done
Some of you may have customers that have paid deposits in advance of work being started or completed.
These amounts are not considered income until the work has been done so as at 31 March you will need to make a separate list of those that have paid you in advance.

Accounts Payable (Creditors)
These are the suppliers that you owe money to.
So again if you don’t use a computerised system to keep a track of these, you will need to make a list of those suppliers that you owe money to at 31 March. It is important that you include all amounts that you have owe as at 31 March.
If you use a computerised system, then you need to review the Accounts Payable report to ensure that all those listed, you do in fact owe the money to .. you should be ale to match what is showing to any supplier statements that you get at the end of the month. You would be surprised the number of clients that don’t do this and it is left to get totally out of hand!

1. Accounts Receivable .. get all invoicing done for March
2. Accounts Receivable .. review the Accounts Receivable report from your computer system, follow up any overdue amounts and write off any bad debts.
3. Accounts Receivable .. identify any customers that have paid you deposits in advance
4. Accounts Payable .. review the Accounts Payable report and make any changes required to ensure that it accurately reflects all amounts owing at 31 March