5 Key Account Payable Processes you Should Know

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 …

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Is Accounting Software the Same as ERP?

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 …

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What is a Control Account in Accounting? Definition, Types, and purpose

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 …

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Accounts Payable Journal Entry: Example and Explanation

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 …

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Accounts Payable Vs. Accounts Receivable: 7 Differences You Should Know

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 …

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