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Accounts receivable (AR) are amounts owed to your organization for goods or services you have already provided but have not yet collected.
Accounts receivable are claims for payment, usually from customers, partner agencies, or others you bill on account. They are recorded as assets until you collect the cash or write off the balance. Nonprofits often use AR for fee-for-service programs, membership dues billed in advance or in arrears, facility rentals, and contracted government or service billings. AR is different from pledges receivable (promises to give) and other contribution receivables, which follow contribution accounting rules. Healthy AR habits include invoicing promptly, applying payments accurately, reviewing aging regularly, and having clear policies for collections and bad debt.
Tracking accounts receivable helps you collect earned revenue on time, keep cash flowing to your programs, and report assets accurately on your Statement of Financial Position.
Aplos includes an Accounts Receivable module (Fund Accounting > Transactions > Accounts Receivable) to create customizable invoices (including templates and logos), record payments, monitor remaining balances, and view an aged breakdown of amounts due. You can print or email invoices, create recurring invoices when Recurring Transactions are enabled, and run Aged Receivables and Contact Statement reports.
Only if you bill for goods or services on account. Donation-only organizations may rarely use AR, though some still invoice for events or rentals.
AR usually arises from exchange transactions (you provided something for a fee). Pledges are contribution promises and follow different recognition and allowance rules.
An aging report groups outstanding invoices by how long they have been unpaid (for example, current, 30, 60, 90+ days) to prioritize collections. See the Aging Report glossary page.
Yes. Help describes emailing invoices for online payment by card or bank login, then recording the payment in Aplos.
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