Dictionary / Receiver
What does Receiver mean in accounting?
Quick definition
GeneralA person appointed by a court to take charge of property pending its disposition. This term guides how bookkeepers record, classify, and explain related transactions in routine financial reporting.
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Examples
A court puts someone in charge of the cafe building
You run a cafe and own the building. On June 11 a county court appoints a receiver over that building, which sits on your fixed assets list at $265,000. She now takes charge of the property pending disposition, so you no longer control that real estate: do not sell it, refinance it, or deposit proceeds from it into cafe checking as ordinary cash. Leave the $265,000 on the balance sheet until the court disposes of it, and flag the asset file so you do not treat the building as something you still run. Do not add a Receiver account.
The person who deposits the customer check
You run a veterinary clinic. On January 22 your front-desk lead opens a $640 check from a kennel client on an unpaid invoice and records Receive payment in QuickBooks Online. The front-desk lead received the check; he is not a receiver. Accounts receivable decreases $640 and undeposited funds increase $640. That is a cash receipt, so do not create a Receiver account or treat the deposit as a court taking charge of clinic property.
Why it matters
A receiver is a person a court names to take charge of property until the court decides what happens to it. You will not use this word most months; it shows up only after that appointment, usually in a dispute or similar case, not at an ordinary close. It is not the person who opens the mail and deposits customer checks, and it is not a ledger account. If a receiver is in charge of property you used to control, those assets are no longer yours to spend, sell, or record as everyday operating activity, and the balance sheet is wrong if you keep treating that cash or equipment as if you still run it.
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What is Receiver in bookkeeping?
A person appointed by a court to take charge of property pending its disposition.
When should I use Receiver?
Use Receiver when the transaction facts match its definition and you need the ledger and financial statements to reflect the correct account and period.
What is a common mistake with Receiver?
Receiver is used for receiver entries, while Raw Materials covers a related but distinct bookkeeping purpose. Review both terms before posting unusual transactions. A common mistake is applying it by label only instead of checking the underlying transaction details.