A/P and A/R Functions to Stay Organized

Whether you are set up for cash or accrual accounting, using the A/P and A/R function is a great tool to help you stay organized.

In accrual accounting, you enter your bills and invoices for the period they occur. QuickBooks uses the date of the bill or invoice to put the expense or revenues in the right period even if you decide to pay the bill later or if you give your customers terms and they pay you at a later date.

For cash accounting, even though you will record your income and expenses at the time you pay and receive your payments, it’s a great way to keep your bills organized for due dates. If you give some of the customers terms, you can easily keep track of who owes you money and when they owe it.