Accounts receivable
Accounts receivable is the money customers owe you for work already invoiced but not yet paid.
Also called
- AR
- receivables
- money owed
- outstanding invoices
Receivables are revenue you have earned but cannot spend yet. Watch the total and its age: invoices 1 to 30 days past due, 31 to 60, and over 60. The older an invoice gets, the less likely it is to be paid in full.
Keep receivables low by invoicing the day the job is done, stating net terms clearly, and following up on a schedule.
Formula
accounts receivable = invoices sent − payments received (for open invoices)
Track it in Birdy
Leads, quotes, jobs and invoices on one customer record, set up with your own data.
Related
- FeatureInvoicingInvoices drafted when a job is done, batch billing for HOAs, and reminders for late ones.Read
- FeatureReports and speed to leadSpeed to lead, close rate, money, what's owed and how the crews did, with every number clickable.Read
- GuideSwitching field service softwareStep by step, how to move a home service company to new field service software: what to export, how to clean data, when to cut over and what to tell staff.Read
- GlossaryNet termsNet terms are the number of days a customer has to pay an invoice after it is issued, such as net 30, common with commercial and HOA customers.Read
- GlossaryDepositA deposit is part of a job's price paid when the quote is accepted, before the work is done, to secure the booking and cover materials on bigger jobs.Read
- GlossaryCommercial vs residentialResidential work is for homeowners; commercial work is for businesses, property managers and HOAs, with different prices, scheduling, paperwork and payment terms.Read