"My Profit & Loss report tells me that I'm making a lot of money, but where is it?" This is a common question we get asked frequently. I usually tell that person to open their Accounts Receivable report. Accounts Receivable is one of those reports that can be scary the first time
it's opened. This shows the amount of money that the company has invoiced its customers for whom have not paid yet. In accrual based reporting, these amounts show up on the Profit & Loss and have a major impact on the bottom line. Streamlining your invoicing process can eliminate having a wrong AR report. Also, streamlining the process in which your customers pay your company can reduce your AR balance and make your cash flow much more predictable.