Accounts Receivable

12 Months Ended

Dec. 31, 2011

Accounts Receivable [Abstract]

Accounts Receivable

3. Accounts Receivable

Insperity accounts receivable is primarily composed of trade receivables and unbilled receivables.  Our trade receivables, which represent outstanding gross billings to customers, are reported net of allowance for doubtful accounts of $1.0 million and $988,000 as of December 31, 2011 and 2010, respectively.  We establish an allowance for doubtful accounts based on management's assessment of the collectability of specific accounts and by making a general provision for other potentially uncollectible amounts.

We make an accrual at the end of each accounting period for our obligations associated with the earned but unpaid wages of our worksite employees and for the accrued gross billings associated with such wages.  These accruals are included in accrued worksite employee payroll cost and unbilled accounts receivable; however, these amounts are presented net in the Consolidated Statements of Operations.  Insperity generally requires clients pay invoices for service fees no later than one day prior to the applicable payroll date.  As such, we generally do not require collateral.  Customer prepayments directly attributable to unbilled accounts receivable have been netted against such receivables as the gross billings have been earned and the payroll cost has been incurred, thus we have the legal right of offset for these amounts.  Unbilled accounts receivable consisted of the following:

	December 31,
	2011			2010
	(in thousands)
Accrued worksite employee payroll cost	$	130,317		$	109,697
Unbilled revenues		38,564			32,613
Customer prepayments		(10,373	)		(8,123	)
Unbilled accounts receivable	$	158,508		$	134,187