Accounting for the amount of revenue that is returned to the business by client purchases of goods or services is the first most commonly asked question about a business. If a business is to be sold, it is the receivable accounts that determine the annual incoming revenue potential.

Venture capitalists and buyers of businesses ask to see documentation that proves the amount of month-to-month business revenue. Profits are determined after all expenses are paid. The receivables documentation should be accompanied by the impact of expenses directly related to providing goods or services. This documentation is known as a “balance sheet”.