Do You Know What You’re Really Owed?
Have you ever balanced your checkbook only to realize you forgot about a bill that hadn't cleared yet?
Schools do the same thing.
If a family owes tuition but hasn't paid yet, that money shouldn't simply disappear because it isn't in the bank.
Likewise, if you've received goods or services but haven't paid the bill yet, that expense still belongs in the correct period.
Knowing what you're owed (Accounts Receivable) and what you owe (Accounts Payable) gives you a much clearer picture of your school's financial health.
Cash tells you where you've been.
Receivables and payables help tell you where you're going.
Something to think about:
If you looked at your financial statements today, would you know exactly how much tuition is still outstanding?
If not, let's talk.