If you plan to sell goods or services on account in your
business, you will need a method of tracking who owes you how much
and when it is due. This is where the accounts receivable subledger
comes in. If you will be selling to a number of different
customers, then an automated system is a must.
A good bookkeeping software system will allow you to set up
subledgers for each customer. So when a sale is made on account,
you can track it specifically to the customer. This is essential to
ensure that billing and collection are done in a timely manner.
Excerpted from Start Your Own Business: The Only Start-Up
Book You'll Ever Need, by Rieva Lesonsky and the Staff of
Entrepreneur Magazine, © 1998 Entrepreneur Press
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