Accounts receivable is defined as an asset that reflects a future payment. In actuality, an accounts receivable is a debt. How your business deals with the debt obligation, and the terms of the debt, ...
If your business collects cash from customers, you need to account for it properly. This process can become complicated if you have individual invoices or bookkeeping entries for a good or service ...
Cash is queen in a business, and you need a cash management system. One of the most critical components of cash flow involves managing your accounts receivable. However, managing accounts receivables ...
Accounts receivable turnover and inventory turnover are two important ratios used by analysts to measure how efficiently a firm is paying its bills, collecting cash from customers, and turning ...
Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of ...
The money due from all customers for merchandise or services delivered on credit. The total figure would be shown on the balance sheet as an asset If you plan to sell goods or services on account in ...
Many companies in need of working capital, often young, growing companies without access to traditional credit, find alternative financing by factoring their accounts receivable, which involves the ...
It is not uncommon that companies with cash flow problems or those that have a desire to be paid on expedited terms assign their accounts receivables as collateral for a secured loan or they factor ...
To truly scale intelligence, leaders must become “context” architects: redesigning structures, processes and culture so that ...
Set up an accounts payable process to ensure vendors are paid on time, reduce duplicate payments, and maintain accurate ...
Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...