Accounting Tools

APRIL 4, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is Invoice Discounting? Invoice discounting is the practice of using a company's unpaid accounts receivable as collateral for a loan , which is issued by a finance company. There is no need to notify customers of the discounting arrangement.

Invoicing 75

Invoicing Accounts Receivable Accounts Receivable Account Receivables 75

CapActix

JUNE 17, 2024

One of the most effective ways to maintain this balance is through efficient management of accounts receivable. Accounts receivable for small businesses is more than just sending invoices. These services cover invoicing, collections, credit management, and detailed reporting.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Accounting 52

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. Revenue accrual is a key principle in accounting that ensures revenue is recognized when earned , not necessarily when cash is received.

Accruals 73

Accruals Accounts Receivable Accounts Receivable Account Receivables 73

Invoicera

APRIL 2, 2024

The accounts receivables and payables management records have a unique significance in the business world. Let’s dive into detailed information about Accounts Payable and Receivable Management and their importance. What is Accounts Payable Management? Here, comes the Accounts Payable management.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Accounts Payable 52

Jetpack Workflow

MARCH 23, 2023

In most cases, you’ll find yourself delivering the product or service first, along with an invoice, and receiving payment later. Depending on your credit terms and the customer’s ability to pay, that invoice could be outstanding for a short or extended period. It can be a number, letters, or a mix of both.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables AR 52

Accounting Tools

APRIL 14, 2024

What is the Schedule of Accounts Receivable? The schedule of accounts receivable is a report that lists all amounts owed by customers. The report lists each outstanding invoice as of the report date, aggregated by customer. Those invoices in the 0-30 day bucket are considered to be current.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Collections 40

Nanonets

SEPTEMBER 22, 2023

Accounts receivable  is a crucial aspect of financial management for businesses, and understanding how to effectively manage it is essential for maintaining a healthy cash flow and business growth.  Efficient management of accounts receivable is essential for maintaining a healthy cash flow and avoiding liquidity problems.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Accounts Payable 52

Accounting Tools

MARCH 24, 2023

Related Courses Bookkeeping Guidebook Credit and Collection Guidebook How to Audit Receivables What is the Accounts Receivable Ledger? The accounts receivable ledger is a subledger in which is recorded all credit sales made by a business.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables General Ledger 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 Accounts Receivable Account Receivables Accounting 40

Gaviti

NOVEMBER 16, 2023

One of the most effective ways of increasing your company’s cash flow is by ensuring that customers pay their invoices on time. It might seem like a silly question to ask in a blog dedicated to topics about accounts receivables, but there actually is no standard consensus on exactly when an account is categorized as delinquent.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Accounting 52

oAppsNet

MAY 7, 2024

Among the various aspects of financial management, accounts receivable collections stand out for their direct impact on a company’s liquidity and cash flow. What Are Accounts Receivable Collections? Initially, it involves preparing and sending invoices, followed by tracking these invoices to ensure timely payment.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Collections 40

Accounting Tools

JUNE 11, 2023

Related Courses Corporate Finance Working Capital Management What is Accounts Receivable Discounted? Accounts receivable discounted are unpaid billings to customers that have been sold to a third party in exchange for cash.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Corporate Finance 40

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 Accounts Receivable Account Receivables Accounting 40

Accounting Tools

JULY 15, 2024

The provision for doubtful debts is the estimated amount of bad debt that will arise from accounts receivable that have been issued but not yet collected. It is identical to the allowance for doubtful accounts. The two line items can be combined for reporting purposes to arrive at a net receivables figure.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accruals 75

Accounting Tools

APRIL 25, 2024

What is Invoice Factoring? Factoring is the use of a borrowing entity's accounts receivable as the basis for a financing arrangement with a lender. Variations on Invoice Factoring There are several variations on the factoring concept, which are noted below. This approach reduces the risk of non-payment for the lender.

Invoicing 40

Invoicing Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

JULY 24, 2023

The cash collection cycle is the number of days it takes to collect accounts receivable. The measure is important for tracking the ability of a business to grant a reasonable amount of credit to worthy customers, as well as to collect receivables in a timely manner. Several techniques for doing so are noted below.

Cash Collection 75

Cash Collection Collections Accounts Receivable Accounts Receivable 75

Accounting Tools

JUNE 7, 2023

Account Record An account can be the record in a system of accounting in which a business records debits and credits as evidence of accounting transactions. Thus, the accounts receivable account stores information about billings to customers, as well as reductions of those billings due to payments from customers.

General Ledger 75

General Ledger Accounting Accounting Accruals 75

Accounting Tools

MARCH 29, 2023

Impact of the Accounting Equation on Accounting Transactions Every accounting transaction has to follow the dictates of the accounting equation , which states that any transaction must result in assets equaling liabilities plus shareholders' equity.

Accounting 75

Accounting Accounting Financial Statements Accounts Receivable 75

Accounting Tools

JUNE 14, 2023

Example of a Suspense Account A customer sends in a payment for $1,000 but does not specify which open invoices it intends to pay. Until the accounting staff can ascertain which invoices to charge, it temporarily parks the $1,000 in the suspense account.

Accounting 74

Accounting Accounting Accounts Payable Accounts Payable 74

Accounting Tools

JUNE 15, 2023

A dunning letter is a notification sent to a customer, stating that it is overdue in paying an account receivable to the sender. Irrespective of the tone of the letter, it always states the amount due, the date of the unpaid invoice , the number of the invoice, and any late payment fines or interest penalties.

Collections 75

Collections Invoicing Accounts Receivable Accounts Receivable 75

Ontrack Bookkeeping

FEBRUARY 26, 2025

A definition of profit Profit is the money left in your business after all your expenses have been paid. This because are created on invoices and bills, that may not have actually been paid yet. So, you might be owned a tonne of money, and or owe money to others, and that won’t reflect in the bank account.

Billing 52

Billing Collections Accounts Receivable Accounts Receivable 52

Nanonets

SEPTEMBER 21, 2023

To effectively manage procurement and financial processes, it is crucial to understand the distinction between a  purchase order  and an  invoice. On the other hand, an  invoice  is sent by the seller to request payment once the order is fulfilled.

Purchase Order 52

Purchase Order Invoicing Financial Records Record Keeping 52

Accounting Tools

JUNE 8, 2023

Sales Order A sales order , when coupled with a bill of lading and/or packing list, can be used to invoice a customer, which in turn generates a sale transaction. Supplier Invoice A supplier invoice is a source document that supports the issuance of a cash, check, or electronic payment to a supplier.

Petty cash 75

Petty cash Invoicing Bookkeeping Reconciling 75

Accounting Tools

JUNE 14, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook What is the Direct Write Off Method? The direct write off method involves charging bad debts to expense only when individual invoices have been identified as uncollectible.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 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

AUGUST 6, 2023

Examples of the Dual Aspect Concept Here are several examples of the dual aspect concept: Issue an invoice to a customer. One part of the entry increases sales, which appears in the income statement , while the offset to the entry increases the accounts receivable asset in the balance sheet. Receive an invoice from a supplier.

Accruals 75

Accruals Financial Statements Bookkeeping Accounts Payable 75

Gaviti

JUNE 17, 2024

A B2B customer payment portal facilitates customer payment collection by customers of B2B businesses the ability to pay their receivables, which are often high-volume and complex. The quicker and more intuitive your interface is, the more likely customers will consider using it to pay their receivables. Payment history.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Invoicing 52

AvidXchange

OCTOBER 5, 2023

Table of Contents: Small Business Financing Challenges | What is Small Business Invoice Factoring? | Is Invoice Factoring Right for Your Small Business? | How Does Invoice Factoring Work with AvidXchange’s Invoice Accelerator? Is Invoice Factoring Right for Your Small Business? This has been around for ages.

Invoicing 52

Invoicing Accounts Receivable Accounts Receivable Account Receivables 52

Billing Platform

MARCH 1, 2025

Read on to learn more about ARPU how to calculate, what it takes to increase ARPU, its advantages and disadvantages, how ARPU trends affect financial forecasting, the relationship between ARPU and the subscription economy , ARPU and your accounts receivable reports, and the association between ARPU and revenue recognition.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Collections 52

Billing Platform

MARCH 1, 2025

Read on to learn more about ARPU how to calculate, what it takes to increase ARPU, its advantages and disadvantages, how ARPU trends affect financial forecasting, the relationship between ARPU and the subscription economy , ARPU and your accounts receivable reports, and the association between ARPU and revenue recognition.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Collections 52

Accounting Tools

OCTOBER 12, 2023

The credit being extended is usually in the form of either a loan or an account receivable. In the case of an unpaid loan, credit risk can result in the loss of both interest on the debt and unpaid principal, whereas in the case of an unpaid account receivable, there is no loss of interest.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Collections 75

Accounting Tools

APRIL 10, 2023

Example of a Post Dated Check ABC International receives a $500 check payment from a customer for an unpaid invoice on April 30. ABC should not record the cash receipt until May 15, nor should it reduce the related accounts receivable balance until May 15. The check is post dated to May 15.

Deposits 75

Deposits Financial Statements Collections Accounts Receivable 75

Accounting Tools

JUNE 12, 2023

Accounts receivable. Confirm account balances, investigate subsequent collections, test year-end sales and cutoff procedures. Confirm securities, review subsequent transactions, verify market value.

Financial Statements 76

Financial Statements Auditing General Ledger Bank Reconciliation 76

AvidXchange

OCTOBER 16, 2023

Though he works with a bookkeeper who handles his finances, outstanding invoices sometimes weigh heavy on his mind. “In 2023, I’m getting paid for services rendered in 2020 and 2021. Waiting years for payment is definitely not the norm for Rothenberg. That’s a long time to think about those jobs and have them on the books.”

Invoicing 52

Invoicing AR Accounts Receivable Accounts Receivable 52

Accounting Tools

DECEMBER 10, 2023

This concept differs from the cash basis of accounting, under which revenues are recorded when cash is received, and expenses are recorded when cash is paid. Types of Accrual Accounts There are several accounts used under the accrual basis of accounting that are not employed under the cash basis of accounting.

Accruals 75

Accruals Accounting Accounting Financial Statements 75

Billing Platform

SEPTEMBER 20, 2024

Popular among software-as-a-service (SaaS) organizations, billing consolidation is a methodology that merges multiple transactions or subscriptions into a single invoice. It’s also referred to as consolidated invoicing, consolidated subscription billing, and consolidated billing in SaaS.

Billing 69

Billing Invoicing Invoice Processing Financial Reporting 69

Accounting Tools

JULY 7, 2024

A bad debt provision is a reserve against the future recognition of certain accounts receivable as being uncollectible. Doing so shows the full effect of a billed sale transaction in a single accounting period. What is a Bad Debt Provision?

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Billing 40