How to Know What Your Business Is Owed and What It Owes: A Guide to Receivables and Payables

To know what your business is owed and what it owes, review accounts receivable and accounts payable balances as of a specific date. Calculate each customer's outstanding balance after collections, returns, and adjustments, and apply the same approach to supplier obligations.

For example, if customers owe 20,000 and supplier balances total 12,000, the difference is 8,000. However, this is neither available cash nor net profit. Review due dates, overdue balances, and account statements regularly. Try Cash Cloud for free to explore customer, supplier, invoicing, and reporting tools.