Accounts Payable and Receivable Basics

About this course

Accounts receivable is the money customers owe you, and accounts payable is the money you owe suppliers. Getting both right keeps cash moving and relationships healthy. This course covers accurate invoicing, following up overdue accounts, approving supplier invoices and keeping payment records tidy. It's general information only, so check with your accountant on specific obligations.

What you will be able to do

• You'll be able to explain receivables and payables and how they affect cash
• You'll be able to prepare accurate invoices that get paid without delay
• You'll be able to follow up overdue accounts in a firm and respectful way
• You'll be able to approve supplier invoices and keep organised payment records

Course outline

1. Receivables and Payables Explained

   8 min · Lesson notes, example, action task · 2-question quiz

   Receivables are amounts customers owe you. Payables are amounts you owe suppliers. Both appear on the balance sheet and both shape your cash position.
2. Accurate Invoicing

   9 min · Lesson notes, example, action task · 2-question quiz

   An accurate invoice is paid faster because the customer can check it quickly and has no reason to query it. Accuracy starts with the basics: correct details, clear descriptions and the right tax treatment.
3. Following Up Overdue Accounts

   9 min · Lesson notes, example, action task · 2-question quiz

   Overdue accounts are easier to collect when you follow up early, consistently and politely. A simple, scheduled process protects cash without damaging the relationship.
4. Approving Supplier Invoices

   9 min · Lesson notes, example, action task · 2-question quiz

   Approving supplier invoices means checking that you received what you were charged for, at the agreed price, before payment is released. It's a simple control that prevents overpayment and fraud.
5. Organising Payment Records

   8 min · Lesson notes, example, action task · 2-question quiz

   Good payment records make reconciliation, tax returns and audits far easier. Keep them organised by date, supplier or customer and store them where they can be found.
6. Tools you'll need

   6 min · Lesson notes, example, action task · 2-question quiz

   You can manage receivables and payables with a spreadsheet, but accounting software saves time once volumes grow. Choose tools based on the number of invoices and the people involved.
7. Careers & next steps

   6 min · Lesson notes, example, action task · 2-question quiz

   Receivables and payables skills are needed in accounts, finance and operations roles. This lesson shows typical paths and how to check what the work is worth.
8. Final quiz and certificate

   10 questions, pass mark 8 of 10. Pass to get your Reesby Academy certificate with a verification link.