Letter to Confirm Accounts Receivable
What is this form?
The Letter to Confirm Accounts Receivable serves as a formal communication tool for businesses to verify the total amount of accounts receivable owed by a customer. This letter helps ensure that the financial records are accurate and assists in the auditing process. Unlike general payment reminders, this letter specifically requests confirmation of the balance due, making it an essential document for maintaining clear and transparent financial relationships with clients.
Key components of this form
- Date of the letter
- Name and address of the customer
- Name of the auditors conducting the financial audit
- Requested balance due as of a specific date
- Signature and printed name of the customer
When to use this document
This form is useful when a business needs to confirm the total accounts receivable from a customer, particularly during an audit. Use it when discrepancies in financial records arise or when you wish to ensure accurate bookkeeping. It can also be a proactive measure to maintain financial clarity before year-end accounting procedures.
Who can use this document
This letter is designed for:
- Business owners who manage accounts receivable
- Accountants coordinating audits
- Financial managers overseeing financial records
- Auditors requiring confirmation from clients
Completing this form step by step
- Fill in the date at the top of the letter.
- Enter the customer's name and address.
- Specify the name of the auditors and the date for which the balance is being confirmed.
- Indicate the total balance due as shown in your records.
- Leave space for the customer to confirm agreement or note any discrepancies.
- Obtain the customer's signature and printed name before sending the letter.
Notarization guidance
In most cases, this form does not require notarization. However, some jurisdictions or signing circumstances might. US Legal Forms offers online notarization powered by Notarize, accessible 24/7 for a quick, remote process.
Mistakes to watch out for
- Forgetting to include the specific date for balance confirmation.
- Failing to properly address the letter, leading to confusion.
- Not providing an adequate space for comments on discrepancies.
- Omitting a signature or printed name from the customer.
Why use this form online
- Convenience of downloading and printing immediately.
- Editability allows personal customization for specific client situations.
- Ensures that documents are drafted based on legal standards.
- Access to templates developed by licensed attorneys.
Form popularity
FAQ
Find out to whom you are writing or addressing the letter. Format the letter (Grammar and spelling check) Salutation/Greetings. Introduce yourself. Write the body of the letter. Close the letter with gratitude. Your's sincerely/faithfully.
There are two types of confirmations: A positive confirmation requests that the recipient complete a form confirming account balances (for example, how much a customer owes the company). A negative confirmation requests that the recipient respond only if the balance is inaccurate.
Trace receivable report to general ledger. Calculate the receivable report total. Investigate reconciling items. Test invoices listed in receivable report. Match invoices to shipping log. Confirm accounts receivable. Review cash receipts. Assess the allowance for doubtful accounts.
RECEIVABLE CONFIRMATIONS ARE NOT ALWAYS required if accounts receivable are immaterial, the use of confirmations would be ineffective or combined inherent risk and control risk are low and analytics or other substantive tests would detect misstatements.
What is an Accounts Receivable Confirmation? When an auditor is examining the accounting records of a client company, a primary technique for verifying the existence of accounts receivable is to confirm them with the company's customers. The auditor does so with an accounts receivable confirmation.
1Trace receivable report to general ledger.2Calculate the receivable report total.3Investigate reconciling items.4Test invoices listed in receivable report.5Match invoices to shipping log.6Confirm accounts receivable.7Review cash receipts.8Assess the allowance for doubtful accounts.Accounts receivable auditing AccountingTools\nwww.accountingtools.com > articles > accounts-receivable-auditing
What is an Accounts Receivable Confirmation? When an auditor is examining the accounting records of a client company, a primary technique for verifying the existence of accounts receivable is to confirm them with the company's customers.
