Knowing the difference between accounts payable And notes payable could be the game-changer for your business. Beyond knowing the difference between these two concepts, knowing how to put that knowledge into work will have a positive impact on your business. Cash they say is king in every business. If this saying is true, it also …
Accounts Payable Vs Notes Payable: 7 Differences you should know Read More »
A cash receipt is issued when a cash transaction takes place and the payment is made through cash or cash equivalent. A cash receipt is an integral part of any accounting system. It has several uses including records for cash sales, balancing accounts receivable and payable, and reconciliation of accounts. Let us discuss the cash …
Cash Receipt – Definition, Journal Entry, and Example Read More »
The basics must be revisited to maintain sound financial health in a business. One of such basics is the T account for accounts payable. Revisiting the financial basics will help ensure that any possible problems arising from these areas are seen on time. The T-account is one of the fundamental concepts in accounting. Understanding how …
Businesses use an account payable process for better invoice management. Small business owners purchase things to manage their business; when a business owner acquires something from a vendor or distributor, they usually send an invoice to the business owners. Failure to manage invoices could result in late payments, additional costs, and strained relationships. Business owners …
Although there is some crossover between accounting software and ERP – Enterprise Resource planning, these two are different. ERP is a resource management system with several functionalities, and it’s not limited to accounting and financial reporting. It includes different functional modules like procurement, manufacturing, inventory management, order management, supply chain management, warehouse management, customer relationship …
Definition The control account is a summarized account in the general ledger. It contains aggregated total for the transactions that are posted in the subsidiary ledger. It is also called a controlling account because it enables us to perform reconciliation control on the ending balance. In other words, control account enables us to reconcile the …
What is a Control Account in Accounting? Definition, Types, and purpose Read More »
What are accounts payable? Accounts payables are liabilities or financial obligations which a company owes to its suppliers. Basically, accounts payable are short-term debts that a company has borrowed due to buying their product or service on credit. The accounts payables are noted in the journal entry as current liabilities under the liabilities section in …
Accounts Payable Journal Entry: Example and Explanation Read More »
Introduction Accounts payables are those financial obligations or liabilities that a company has to pay its suppliers for the product or service it received from one of its suppliers. At the same time, accounts receivables are the receivables that a company has yet to receive from one of its clients for the provided product or …
Accounts Payable Vs. Accounts Receivable: 7 Differences You Should Know Read More »
The basis of accounting mostly refers to how accounting records are kept and maintained within the company. There are two main types of accounting that the company uses. They can either include cash basis of accounting or accrual basis of accounting. Cash Basis of Accounting Cash Basis of Accounting mostly recognizes revenues when cash is …
Cash and Accrual Basis of Accounting: Definition, Explanation, and Examples Read More »
Bookkeeping and Accounting tend to be some of the most important ancillary functions of the company. It is important to recognize that bookkeeping and accountancy help the company keep a record of its transactions. Keeping this track can help users ensure that they are well aware of their profitability, which can eventually help them decide …
Is a Bookkeeper the Same As An Accountant? (All You Need To Know) Read More »
