Accounts receivable, or sales?

1

Hey there,

Sorry if this sounds super basic, I’m a new freelance engineer, and I’d like to know where I should “deposit” payments in manager io

My current flow is:

  • Generate a quote for a customer
  • Turn that into an invoice
  • They pay me into a back account that I have listed in manager io
  • I then generate a receipt from the invoice

For a few receipts, I have been using the account “Accounts receivable” but my overview in manager io doesn’t show income, only assets, which I don’t think is correct. I think I should get this correct now while I still only have <10 receipts!

Should I use sales, instead? I’ve essentially sold my time.

On a side note, I’m aware that this is a basic accounting question, but I can’t find a good resource for learning this, does anyone have one? LinkedIn learning, youtube, something?

Thanks very much in advance!

2

Yes, when creating a Sales invoice you should select an income account (in most cases).

Sales (income account) is built into every Manager file.

3

Start here: https://www.accountingcoach.com.

Also read the Manager Guides. They provide many examples with illustrations from the program.

4

@AJD Thanks for clearing that up! I’ll change all the reciepts to “Sales” account.

@Tut Thanks for the link and the mention of the guides, I’ll be sure to check them out :slight_smile: !

5

Don’t change the receipts, change the invoices

6

Okay that does add it to my profits, but do I need to change all the old receipts from “accounts receivable” to “sales” or no?

7

If you have created a Sales invoice for a transaction, then the receipt for that transaction needs to be applied to that invoice via accounts receivable.

If you receive money for a transaction for which you have not created an invoice then a receipt can be created and directed to the sales account.