{"id":27788,"date":"2025-02-14T09:00:00","date_gmt":"2025-02-14T14:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=27788"},"modified":"2025-03-31T04:30:29","modified_gmt":"2025-03-31T08:30:29","slug":"is-accounts-receivable-an-asset","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/is-accounts-receivable-an-asset\/","title":{"rendered":"Is accounts receivable an asset or liability? Everything you need to know"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tIs accounts receivable an asset or liability? Everything you need to know\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2025-02-14T09:00:00-05:00\">February 14, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Is accounts receivable an asset or liability? Everything you need to know\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/is-accounts-receivable-an-asset\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/elizabethryan\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/08\/lizryan-350x350.png\" class=\"entry-author__image\" alt=\"Elizabeth Ryan\" \/>\t\t\t\t<span class=\"entry-author__name\">Elizabeth Ryan<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Most businesses offer their customers the convenience of buying on credit. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s great for sales, but it also means you need a solid process in place to make sure you actually see that money. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Good accounts receivable (AR) management helps you stay on top of payments, while building better customer relationships.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this post, we\u2019ll answer a key question\u2014Is accounts receivable an asset or a liability? <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ll also explain why AR is so essential to your company\u2019s financial health. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then stick with us for some practical tips on how to make the most of your AR process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-is-accounts-receivable-an-asset\" data-level=\"2\">Is accounts receivable an asset?<\/a><\/li><li><a href=\"#h-is-accounts-receivable-a-liability-nbsp\" data-level=\"2\">Is accounts receivable a liability?&nbsp;<\/a><\/li><li><a href=\"#h-why-is-accounts-receivable-an-asset\" data-level=\"2\">Why is accounts receivable an asset?<\/a><\/li><li><a href=\"#h-is-net-accounts-receivable-a-current-asset\" data-level=\"2\">Is net accounts receivable a current asset?<\/a><\/li><li><a href=\"#h-how-does-accounts-receivable-help-businesses\" data-level=\"2\">How does accounts receivable help businesses?<\/a><\/li><li><a href=\"#h-an-accounts-receivable-example\" data-level=\"2\">An accounts receivable example<\/a><\/li><li><a href=\"#h-best-practices-for-optimizing-the-accounts-receivable-process\" data-level=\"2\">Best practices for optimizing the accounts receivable process<\/a><\/li><li><a href=\"#h-bottom-line\" data-level=\"2\">Bottom line?<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-accounts-receivable-an-asset\">Is accounts receivable an asset?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">So, accounts receivable: asset or liability? When you see \u201c<a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-is-accounts-receivable\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>accounts receivable<\/strong><\/a>\u201d on your balance sheet, it\u2019s referring to money you\u2019re owed by customers. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If a client purchases goods or services on credit, the amount they owe is recorded under AR. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Legally, they\u2019re on the hook to pay, which means that amount has (or should have) real economic value to your business\u2014making it an asset.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Think of it this way: if you sold something for cash, you\u2019d have immediate funds in your bank account. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With AR, that cash is coming soon, just not right this second. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the money is on its way, and that makes AR an asset with future economic potential.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You might also hear it described as Net Realizable Value (NRV). <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, remember that there\u2019s no absolute guarantee that every invoice will be paid in full, on time\u2014hence the need for a good AR process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-accounts-receivable-a-liability-nbsp\">Is accounts receivable a liability?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In short, no. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A liability is something your business owes to someone else, like what you pay your suppliers or any outstanding debts. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable (AP) is the opposite side of the coin: it\u2019s how you track <em>your <\/em>owed payments to others. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since AR is money you\u2019re set to receive, it\u2019s not a liability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-is-accounts-receivable-an-asset\">Why is accounts receivable an asset?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Every time you sell a product or service and bill your customer, the transaction is in your favor \u2013 meaning, you\u2019ll have cash coming your way. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once the customer pays, that amount is converted into actual revenue. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Plus, many lenders will consider your AR as collateral if you need a business loan. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other words, if your customers have a strong track record of paying on time, that\u2019s a valuable, short-term asset you can leverage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-net-accounts-receivable-a-current-asset\">Is net accounts receivable a current asset?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. A current asset is something you can convert to cash fairly quickly\u2014usually within the year. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because invoices tied to accounts receivable typically get paid (and hopefully sooner rather than later), they\u2019re considered current assets. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, properties or long-term investments that might take years to liquidate are referred to as long-term assets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-accounts-receivable-help-businesses\">How does accounts receivable help businesses?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-simplify-cash-flow-and-revenue-generation\">Simplify cash flow and revenue generation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts receivable gives you a predictable cash flow, as you\u2019ll know when payments (which become revenue) are due. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As AR is a current asset, it contributes to your liquidity\u2014so you can fulfill your obligations in the short term without needing extra cash flows. With efficient<a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/cash-management\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong> cash management<\/strong><\/a>, you can also invest in growth with confidence.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-reduce-bad-debt-and-collection-costs\">Reduce bad debt and collection costs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If payment for accounts receivable is never received, it\u2019s listed as a bad debt. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But a strong AR process helps avoid this, as you can easily see which customers are good payers and only extend credit to them. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This also helps to reduce collection costs, which include chasing up overdue invoices.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-strengthen-customer-relationships\">Strengthen customer relationships<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">By allowing customers to make purchases on credit, you\u2019ll increase sales and customer loyalty\u2014and loyal customers are more likely to pay on time. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As long as you provide clear payment terms and instructions (and remain polite in your reminders), you\u2019ll be able to develop strong relationships.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-an-accounts-receivable-example\">An accounts receivable example<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s an example of how the AR process works in five steps:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Your company sells a service to Customer X for $5,000.<\/li>\n\n\n\n<li>You send Customer X an invoice for this amount, with payment terms stating a credit period of 30 days.<\/li>\n\n\n\n<li>You record the $5,000 under your accounts receivable. (Meanwhile, Customer X marks $5,000 under their accounts payable).<\/li>\n\n\n\n<li>When Customer X pays, that amount becomes realized revenue in your books.<\/li>\n\n\n\n<li>You then note the payment in your ledger, removing the $5,000 from your unpaid receivables.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-best-practices-for-optimizing-the-accounts-receivable-process\">Best practices for optimizing the accounts receivable process<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Staying on top of AR goes beyond simply sending out invoices. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some tried-and-true strategies to keep the money rolling in on time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-make-use-of-automation\">Make use of automation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Automate everything from sending recurring invoices to issuing payment reminders. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Modern software can record payments automatically and make reconciling <a href=\"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-vs-accounts-receivable-a-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>accounts receivable and accounts payable<\/strong><\/a> a breeze, so your finance team can focus on higher-value tasks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-simplify-payment-procedures\">Simplify payment procedures<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Spell out your credit policies and payment terms in plain English. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Offer multiple ways to pay (credit card, checks, ACH transfers, etc.) to reduce friction. You can also introduce incentives for customers who pay early.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-track-efficiency-with-kpis\">Track efficiency with KPIs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Monitor key metrics, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Collection effectiveness index (CEI)<\/strong>: how efficient your collection process is<\/li>\n\n\n\n<li><strong>Accounts receivable turnover (ART)<\/strong>: how many times you collect average accounts receivables per year<\/li>\n\n\n\n<li><strong>Day sales outstanding (DSO)<\/strong>: time taken to collect payment after issuing invoice<\/li>\n\n\n\n<li><strong>Average days delinquent (ADD)<\/strong>: how long overdue invoices remain unpaid, on average<\/li>\n\n\n\n<li><strong>Percentage of high-risk accounts<\/strong>: how many customers are likely to pay late<\/li>\n\n\n\n<li><strong>Bad debt to sales ratio<\/strong>: the ratio of unpaid invoice amounts to overall sales<\/li>\n\n\n\n<li><strong>Write-off ratio<\/strong>: the percentage of accounts receivable written off as bad debt<\/li>\n\n\n\n<li><strong>Operational cost per collection: <\/strong>how much it costs you to collect payments<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-simplify-accounts-receivable-with-the-right-accounting-software\">Simplify accounts receivable with the right accounting software<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The best way to simplify accounts receivable is to use the right accounting and <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/financial-management\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>financial management software<\/strong><\/a>. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With advanced features and automation, you can save time and money and easily keep track of all invoices and payments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, Sage <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/accounts-receivable\/\"><strong>accounts receivable software<\/strong><\/a> automatically generates recurring invoices, reconciles payments, and sends customer reminders. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The AR ledger auto-updates when you receive payment, and there\u2019s automated transaction posting to your general ledger and AR ledger.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can link documents to customer accounts and connect the cloud-based software to your banking systems and business tools such as CRMs. With multi-currency support, online payment options, and advanced reporting features, Sage has all you need to streamline the AR process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-bottom-line\">Bottom line?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts receivable is definitely an asset\u2014but it only truly benefits your business when it\u2019s well-organized. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Implement a smooth AR process, keep an eye on key metrics, and use top-notch software to stay on top of every invoice. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By doing so, you\u2019ll keep your cash flow healthy, your customers happy, and your business primed for growth.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/accounting-101\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccounting 101\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tCash Flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/sage-accounting\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tSage accounting solutions\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-30823 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-intelligence tag-cash-flow tag-small-business tag-starting-a-business tag-staying-competitive business_type-small-business business_type-growing-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-1215x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-24T09:08:55-04:00\">June 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/how-to-track-business-expenses\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tHow to keep track of business expenses\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tIf you&#8217;re responsible for managing business finances, keeping track of expenses affects how clearly you can see your cash flow and make informed decisions. Learn the key steps, best tools, and how to build a process that keeps your finances accurate and error free. \t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-29306 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-continuity tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-a-purchase-order\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-12T10:24:32-04:00\">June 12, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is a purchase order (PO) and how is it used?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-29310 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations category-technology-innovation tag-artificial-intelligence tag-automation tag-boss-your-business tag-cash-flow tag-cloud-financial-management tag-sage-accounting business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/order-to-cash-process-otc-o2c\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-10T12:23:35-04:00\">June 10, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is the Order to Cash process?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-28775 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-business-strategy tag-cash-flow tag-growing-a-business tag-small-business business_type-small-business business_type-growing-business industry-nonprofit\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/peer-to-peer-fundraising-best-practices\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T05:54:37-04:00\">June 2, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">15 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tPeer-to-peer fundraising guide: Best practices for success\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-29487 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-continuity tag-business-intelligence tag-cash-flow tag-sage-accounting tag-small-business tag-starting-a-business business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-vs-notes-payable\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-22T12:03:36-04:00\">May 22, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tNotes payable vs accounts payable: Differences and examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Accounts receivable is an asset on your balance sheet. It&#8217;s money due for products or services your company has delivered. Read our guide to learn more.<\/p>\n","protected":false},"author":1806,"featured_media":24375,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[43],"tags":[110,299,168],"business_type":[40,41],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[209],"coauthors":[584],"class_list":["post-27788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-accounting-101","tag-cash-flow","tag-sage-accounting","business_type-small-business","business_type-growing-business"],"sage_meta":{"region":"en-us","author_name":"Elizabeth Ryan","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/08\/BrandShootLDN_Jul2022_TechSoftware_0015-Final.jpeg","imagine_tags":{"209":"Accounting"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/27788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1806"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=27788"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/27788\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/24375"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=27788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=27788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=27788"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=27788"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=27788"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=27788"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=27788"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=27788"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=27788"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=27788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}