Definition: Materiality is one of the essential accounting concepts and is designed to ensure all of the crucial information related to the business are presented in the financial statement. The purpose of materiality is to ensure that the financial statement user is provided with financial information that does not have any significant omissions/misstatements. If there …

What is Materiality in Accounting? (Definition, Example, and Explanation) Read More »

Accounting principles are the guidelines and rules that the business needs to follow while reporting financial data/information. These rules are standard procedures and a common set of principles that provide the basis for the financial accounting policies adopted by the business. These principles apply to the whole set of the financial statement, including assets, liabilities, …

What Are Seven Types of Accounting Principles? (Beginner Guidance) Read More »

Introduction Accounts receivables are the receivables which a company is yet to receive from one of its clients for the product or service it provided. Accounts receivables aging is a method of accounting which that organizes the receivables of a company according to the due date. The latest ones, which have the nearest date, are …

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Accounts receivables are defined as any credit due as the result of a sale made on credit that the company sold it their customers. The accounts receivables are a balance of money due to the company for goods or services provided to the customers, but for which the customer has not yet paid for Account …

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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 …

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To maintain sound financial health in a business, the basics must be revisited. One of such basics is the T account for account payable. Revisiting the financial basics will help to ensure that any possible problems that could arise from these areas are seen on time. The T-account is one of the fundamental concepts in …

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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. The business …

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ERP includes functionalities of the accounting software, plus other functional modules like supply chain, inventory, eCommerce, order processing, customer management, human resources, etc. These modules are integrated with the accounting module and each other. This integration of accounting functions with other modules helps to increase the efficiency of the overall process for business management. It’s …

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