Credit Note and Debit Note A credit note and debit note are both types of accounting documents used to record transactions between two parties. A completed credit note is a document that is issue by a seller to a buyer when goods or services are return, or when the price of goods or services… Read More »
Working capital management Working capital management refers to the process of managing a company’s current assets and liabilities to ensure that it has enough liquidity to meet its short-term obligations and operational needs. The goal of management is to strike a balance between maximizing profitability and minimizing financial risk. To visit https://www.mca.gov.in This involves managing… Read More »
Invoice management Invoice management: is the process of handling and tracking the creation, processing, and payment of invoices within a business or organization. It involves various tasks such as generating invoices, sending them to customers, recording payments, and reconciling accounts. Effective invoice helps businesses to streamline their billing and payment processes, reduce errors… Read More »
Basic accounting terminologies Website link Basic accounting terminologies: Here are some basic accounting terminologies: 1.Assets: Resources owned by a business that has monetary value and are expected to provide future benefits. 2.Liabilities: Obligations of a business to pay debts or other financial obligations. 3.Equity: Equity refers to the ownership interest in a company or property,… Read More »
If an invoice is not approved, what will happen If an invoice is not approved, it will be considered as a disputed invoice. The payment process for the disputed invoice will be put on hold until the issue is resolved. The invoice will be sent back to the supplier with a reason for rejection and… Read More »
Debtors vs creditors Creditors and Debtors are two fundamental concepts in accounting, representing parties involved in a financial transaction. Debtors Debtors are parties who owe money to a business for goods or services purchased on credit. In other words, a debtor is a customer who… Read More »
Journal entry for sales invoice Journal entry for sales invoices, In a typical sales invoice journal entry, the following accounts are involved: Accounts Receivable: This account reflects the outstanding amount owed to the company by the customer for the sale. It is debited to increase the balance. Sales Revenue: This account represents the revenue… Read More »
Journal entry for Accounts Payable Journal Entry for Accounts Payable, The journal entry for an account payable and accounts receivable will depend on the specific transaction that is being recorded. However, here are some general examples of journal entries for these accounts: Journal entry for account payable (when a company purchases goods or services… Read More »
Prepaid exp. vs. Accounts Receivable Prepaid expenses and accounts receivable are both important financial concepts in accounting, but they represent different types of transactions. Prepaids expenses It refers to payments that a company makes in advance for goods or services that it expects to receive in the future. For example, if a company pays… Read More »
Accounts Receivable Current Asset Accounts Receivable Current Asset, Yes, it is generally classify as a current asset on a company’s balance sheet. This is because account receivable represent amounts owed to the company by its customers for goods or services that have already been deliver or provide, but for which payment has not yet… Read More »