Accounting Tools

SEPTEMBER 11, 2023

Related Courses Business Ratios Guidebook Financial Analysis Education Bundle The Interpretation of Financial Statements What is Financial Statement Analysis? Financial statement analysis involves gaining an understanding of an organization's financial situation by reviewing its financial reports.

Financial Statements 40

Financial Statements Financial Analysis Accounts Receivable Accounts Receivable 40

Counto

FEBRUARY 3, 2024

Understanding Accounts Receivable Aging Reports As a business owner, managing your finances efficiently is essential for maintaining a healthy cash flow and ensuring that your operations run smoothly. One crucial tool in achieving this is the Accounts Receivable Aging Report. What Is an Accounts Receivable Aging Report?

Accounts Receivable 52

Accounts Receivable Account Receivables Accounts Receivable Accounting 52

Nanonets

MAY 8, 2023

Try Nanonets accounting automation software to streamline all your accounting receivable processes. Start your free trial Accounts receivable (AR) is an asset on a company's balance sheet. In other words, accounts receivable is the money a company expects to receive in the future from its customers.

Accounts Receivable 52

Accounts Receivable Account Receivables Accounts Receivable AR 52

oAppsNet

MAY 9, 2024

Accounts receivable is a fundamental concept in business finance, serving as an essential component of a company’s working capital and cash flow management. This article aims to demystify the accounts receivable process, elucidating its significance, operational mechanisms, challenges, and optimization strategies.

Accounts Receivable 40

Accounts Receivable Account Receivables Accounts Receivable Accounting 40

Accounting Tools

JUNE 18, 2023

Related Courses Business Ratios Guidebook Effective Collections The Interpretation of Financial Statements What is Accounts Receivable Days? Accounts receivable days is the number of days that a customer invoice is outstanding before it is collected. days to collect a typical invoice.

Accounts Receivable 40

Accounts Receivable Account Receivables Accounts Receivable Accounting 40

Accounting Tools

JUNE 20, 2023

Related Courses Business Ratios Guidebook Credit and Collection Guidebook The Interpretation of Financial Statements What is Accounts Receivable Analysis? Accounts receivable are the amounts owed to a business by its customers , and are comprised of a potentially large number of invoiced amounts.

Accounts Receivable 40

Accounts Receivable Account Receivables Accounts Receivable Accounting 40

Accounting Tools

JUNE 20, 2023

Related Courses Credit and Collection Guidebook The Balance Sheet The Interpretation of Financial Statements The average accounts receivable figure is needed in certain situations to avoid measurement problems. Conversely, the average receivable reported for a declining business would be overstated.

Accounts Receivable 40

Accounts Receivable Account Receivables Accounts Receivable Accounting 40

Accounting Tools

JUNE 18, 2023

Related Courses Business Ratios Guidebook Credit and Collection Guidebook The Interpretation of Financial Statements What is the Accounts Receivable Collection Period? The accounts receivable collection period compares the outstanding receivables of a business to its total sales.

Accounts Receivable 40

Accounts Receivable Account Receivables Accounts Receivable Collections 40

Accounting Tools

JULY 24, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What are the Basics of Financial Accounting? This article gives an overview of financial accounting basics for the non-accountant. Its orientation is toward recording financial information about a business.

Financial Accounting 75

Financial Accounting General Ledger Accounting Accounting 75

Accounting Tools

DECEMBER 10, 2023

What is the Accounts Receivable Turnover Ratio? Accounts receivable turnover is the number of times per year that a business collects its average accounts receivable. The accounts receivable turnover ratio can be used in the analysis of a prospective acquiree.

Accounts Receivable 40

Accounts Receivable Account Receivables Accounts Receivable Accounting 40

Billing Platform

FEBRUARY 17, 2025

For businesses operating in dynamic industries, understanding the concept is essential for aligning with Generally Accepted Accounting Principles (GAAP) and maintaining transparency with stakeholders. We’ll also discuss best practices for recording it and why it’s critical for modern financial operations.

Accruals 73

Accruals Accounts Receivable Account Receivables Accounts Receivable 73

Accounting Tools

JUNE 16, 2023

An adjusted trial balance is a listing of the ending balances in all accounts after adjusting entries have been prepared. The second application of the adjusted trial balance has fallen into disuse, since computerized accounting systems automatically construct financial statements.

General Ledger 74

General Ledger Financial Statements Accruals Bookkeeping 74

Accounting Tools

OCTOBER 27, 2023

Window dressing is actions taken to improve the appearance of a company's financial statements. If a business is closely held, the owners are usually better informed about company results, so there is no reason for anyone to apply window dressing to the financial statements.

Accounting 75

Accounting Accounting Financial Statements Accounts Receivable 75

Accounting Tools

JULY 13, 2023

The unadjusted trial balance is the listing of general ledger account balances at the end of a reporting period, before any adjusting entries are made to the balances to create financial statements. The unadjusted trial balance is used as the starting point for analyzing account balances and making adjusting entries.

General Ledger 74

General Ledger Financial Statements Accruals Bookkeeping 74

Accounting Tools

APRIL 24, 2024

It is calculated as follows: (Cash + Cash equivalents) ÷ Current liabilities = Cash ratio Quick Ratio The quick ratio is the same as the cash ratio, but includes accounts receivable as an asset. Related Articles Cost Benefit Analysis Financial Ratio Analysis Incremental Analysis Quantitative Analysis Sales Trend Analysis

Financial Analysis 75

Financial Analysis Accounts Receivable Account Receivables Accounts Receivable 75

Accounting Tools

JUNE 12, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements The total equity of a business is derived by subtracting its liabilities from its assets. The information for this calculation can be found on a company's balance sheet , which is one of its financial statements.

Financial Statements 75

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 75

Accounting Tools

MAY 21, 2023

Related Courses The Balance Sheet The Interpretation of Financial Statements What is the Statement of Financial Position? The statement of financial position is another term for the balance sheet. The statement lists the assets , liabilities , and equity of an organization as of the report date.

Financial Statements 74

Financial Statements Accounts Payable Accounts Payable Financial Reporting 74

Accounting Tools

NOVEMBER 1, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook New Controller Guidebook An accountant is a person who records business transactions on behalf of an organization, reports on company performance to management, and issues financial statements. Management reports are issued to the management team.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

DECEMBER 19, 2023

The general ledger consists of a number of accounts , each of which stores information about a particular type of transaction, such as product sales , depreciation expense , accounts receivable , debt , and so on. In short, accountancy involves each of the preceding tasks - recordation, classification, and reporting.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

JULY 8, 2023

Auditors want to see an account reconciliation for larger accounts, though reconciliations should be performed even in the absence of an auditor request, since this is a good accounting practice that leads to more accurate financial statements.

Reconciling 75

Reconciling Account Reconciliation General Ledger Accounting 75

Accounting Tools

AUGUST 6, 2023

The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting , which is required by all accounting frameworks in order to produce reliable financial statements.

Accruals 75

Accruals Financial Statements Bookkeeping Accounts Payable 75

Gaviti

MARCH 11, 2025

In today’s dynamic financial landscape, effective B2B credit management is paramount for businesses aiming to maintain financial stability and foster growth. The evolution of technology has introduced advanced tools that enhance risk assessment, streamline credit processes, and mitigate potential financial losses.

Collections 52

Collections Accounts Receivable Accounts Receivable Account Receivables 52

Accounting Tools

JULY 8, 2023

The accounting process is three separate types of transactions used to record business transactions in the accounting records. This information is then aggregated into financial statements. The second group is comprised of the steps needed to record individual business transactions in the accounting records.

Financial Statements 75

Financial Statements Accounting Accounting General Ledger 75

Accounting Tools

MAY 19, 2023

Examples of Ledger Accounts Examples of ledger accounts are cash, accounts receivable, inventory, fixed assets, accounts payable accrued expenses, debt, stockholders’ equity, revenue, cost of goods sold, salaries and wages, offices expenses, depreciation, and income tax expense.

General Ledger 75

General Ledger Accounting Accounting Reconciling 75

Accounting Tools

APRIL 6, 2024

The master budget is the aggregation of all lower-level budgets produced by a company's various functional areas, and also includes budgeted financial statements , a cash forecast, and a financing plan. This is not the case for the master budget, which looks very much like a standard set of financial statements.

Budgeting 74

Budgeting Accounts Receivable Account Receivables Accounts Receivable 74

Accounting Tools

JUNE 14, 2023

This method can be considered a reasonable accounting method if the amount that is written off is an immaterial amount, since doing so has minimal impact on an entity's reported financial results, and so would not skew the decisions of a person using the company's financial statements.

Accounts Receivable 75

Accounts Receivable Account Receivables Accounts Receivable Financial Statements 75

Accounting Tools

JUNE 7, 2023

Posting In the Closing Process From the perspective of closing the books, posting is one of the key procedural steps required before financial statements can be created. Access to the subledgers and journals is then opened for the next accounting period. This can require a significant amount of additional research work.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

OCTOBER 24, 2023

Related Courses Business Ratios Guidebook Key Performance Indicators The Interpretation of Financial Statements What are Efficiency Ratios? The following are considered to be efficiency ratios: Accounts Receivable Turnover Accounts receivable turnover is calculated as credit sales divided by average accounts receivable.

Accounts Payable 75

Accounts Payable Accounts Payable Accounts Receivable Account Receivables 75

Accounting Tools

MAY 10, 2024

Related AccountingTools Courses Business Ratios Guidebook The Interpretation of Financial Statements Problems with the Asset Turnover Ratio There are several problems with the asset turnover ratio. They are as follows: Skewed by industry requirements.

Financial Statements 74

Financial Statements Accounts Receivable Accounts Receivable Account Receivables 74

Accounting Tools

NOVEMBER 3, 2023

If an expense has been accrued because there is no supplier invoice for it, remove it from the financial statements. The easiest source of this information is the accrued liabilities account in the balance sheet. Be sure to first examine the contents of this account to ensure that it is correct.

Accruals 75

Accruals Accounting Accounting Accounts Payable 75

Accounting Tools

DECEMBER 10, 2023

These estimates may not be entirely correct, and so can lead to materially inaccurate financial statements. Accrual Basis Best Practices When recording transactions using the accrual basis of accounting, be sure to fully document the reason for each adjusting entry made.

Accruals 75

Accruals Accounting Accounting Financial Statements 75

Accounting Tools

MAY 21, 2023

Related Courses The Balance Sheet The Interpretation of Financial Statements What are the Contents of a Cash Basis Balance Sheet? Under the cash basis of accounting , transactions are only recorded when there is a related change in cash. Accounts receivable. Prepaid expenses. Used under the accrual basis.

Accruals 76

Accruals Accounts Payable Accounts Payable Accounts Receivable 76

Accounting Tools

JULY 14, 2023

If the loss is material, you may want to segregate it in a separate loss account, which more easily draws the attention of a reader of a company's financial statements. This net amount represents the amount of cash that management expects to realize once it collects all outstanding accounts receivable.

Accounts Receivable 75

Accounts Receivable Account Receivables Accounts Receivable Financial Statements 75

Accounting Tools

MAY 21, 2023

Related Courses Closing the Books The Balance Sheet The Year-End Close The balance sheet is one of the three reports within the financial statements. Print the Trial Balance The trial balance is a standard report in any accounting software package. There are a number of steps to follow to prepare a balance sheet.

General Ledger 75

General Ledger Financial Statements Accounts Payable Accounts Payable 75

Accounting Tools

DECEMBER 18, 2023

Substantive testing is an audit procedure that examines the financial statements and supporting documentation to see if they contain errors. These tests are needed as evidence to support the assertion that the financial records of an entity are complete, valid, and accurate. What is Substantive Testing?

Auditing 75

Auditing Financial Statements Accounts Payable Accounts Payable 75

Accounting Tools

JULY 8, 2023

Related Courses Accountants’ Guidebook Bookkeeping Guidebook The Balance Sheet What are Contra Accounts? A contra account offsets the balance in another, related account with which it is paired. Contra accounts appear in the financial statements directly below their paired accounts.

Accounting 75

Accounting Accounting General Ledger Accounts Receivable 75

Accounting Tools

FEBRUARY 11, 2024

Business transactions are events that have a monetary impact on the financial statements of an organization. When accounting for these transactions, we record numbers in two accounts, where the debit column is on the left and the credit column is on the right. What are Debits and Credits?

Accounts Payable 75

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 75