What is a debtor account?
debtors (from lat. Debere “must/debt”) are the debtors, which vis-à-vis the company outstanding receivables that are recorded in customer accounts. Each customer has their own, separate accounts receivable account, in which the accounting department or Accounts receivable can monitor payments and receivables. The counterpart to the debtor is creditor, therefore grantor. These are often suppliers who, as a business customer, Liabilities from supplies and services has. These are recorded in vendor accounts. Accounts payable therefore deals with the debts of a company.
What are the tasks of accounts receivable?
The customer accounts with a customer number are therefore created by Accounts receivable and is therefore receivables management. This can be used to make forecasts as to whether payment terms will be met. That's where the liquidity Read and draw conclusions about your own finances, as Payment delays also have an impact on this.
Die Accounts receivable Takes over the administration of debtors as well as Recording and recording of incoming payments and receivables. In order to avoid payment delays, we can also Payment reminders and reminders be shipped. Accounts receivable is also responsible for this. Automatic notifications are less useful than a quick phone call.
Why do I need a debtor account?
Companies are generally required to keep records clearly, completely and verifiably. This includes recording receivables. However, accounts receivable are also important for the balance sheet.
Am End of fiscal year Is the sum of all debtor accounts added up to the receivables that the liquidity can influence. Die Balance sheet figure is the customer target. This expresses the relationship between receivables and sales revenue in days. It's better for a company if it's down for a short time. Accounts receivable losses Are also used when creating the balance sheet established when receivables from deliveries and services are outstanding and this simply results in losses.
